New Year’s Resolve
Hello All,
As the start of the new year approaches, many of us are thinking about things we want to do differently. Of course the start of a new year is essentially a social construct. January 1st was chosen by Julius Caesar in 46 B.C. to honour the god Janus (after which January is named) and as part of his efforts to align the calendar with the seasons. The Julian calendar forms the basis for our modern Gregorian calendar (which mostly just corrects for leap year which had not been taken into account). Other cultures celebrate the New Year at various times during the year and are often not a fixed date but depend on lunar cycles and may be celebrated over a number of days.
That being said, the new year holds a specific significance as it symbolically heralds a new beginning. Psychologically, it allows us to put the past year, with its follies and foibles behind us, and focus on how we can improve.
Some of us have specific goals - gyms and weight loss plans are massive beneficiaries, while sales of alcohol/cigarettes tend to decrease. Other common goals might include decluttering (Marie Kondo is likely very popular in January), spending less, learning a new skill or simply striving to be a better person.
Others are more cynical and believe that any changes are bound to be short lived. Past failures to stick to resolutions can be deeply discouraging so it is simply better not to resolve to do anything.
Because new year’s day is a social construct, the desire for change is often based on superficial considerations i.e. something we don’t like about ourselves or our lives. However, real change often comes in the wake of more significant events that result in some form of suffering. This might be a breakup, an illness, a job loss, loss of a loved one etc. which usually do not coincide with the start of a new year.
That being said, I (perhaps naively) still believe that this is a great time to both contemplate what you would like to achieve in the coming year and also to reflect upon your wins and obstacles from the previous year. While self improvement is ideally an ongoing and consistent challenge, the symbolic importance of a new year gives weight to this process. It is also a time when most of us are on holiday and therefore have the bandwidth to engage in this exercise which ideally is done in a quiet place free from distraction. Your goals for 2023 can be anything you want them to be. The key, in my opinion, is that they are authentically yours and not because you feel like you have to measure up to someone or something else. For me, as long as I remember to be kind and fair to myself, this type of introspection can be deeply gratifying and allows me to see the potential for renewal.
Blog Post
How To Close Your Year End (or Period End)in QBO
Doing your own accounting in accounting software such as QuickBooks Online (QBO) is relatively straightforward especially if you have set up your QBO file optimally. You periodically enter invoices,
Small Business Articles/Tips
Need Inspiration for New Year Resolutions? A list of no less than 55 small changes that you can make that can improve your year.
Buzzwords from 2022 and more: I’m a huge fan of buzzwords (and making fun of them). This article from the BBC discusses some of the ones we saw in 2022 (many related to the pandemic) and other trends that we saw during the year.
Build a Healthy Relationship with Money: Some advice from the Harvard Business Review about how to handle your personal finances and let go of your limiting beliefs.
Tax Stuff:
Tax Changes for 2023 A good overview of some of the personal tax changes that you can expect in 2023
CRA Fall Economic Statement Overview: Key measures including proposed elimination of interest on student debt, reduction in small business tax rates and introduction of the new housing relating initiatives.
QuickBooks Tip: Catch Up on Your Accounting
This is a good time of year to catch up on your accounting and making sure that your numbers make sense. The best way to do this is by looking at your reports (all available in the reports section) including:
Balance Sheet
Profit Loss
Accounts Receivable Aging
Accounts Payable Aging
See if anything stands out as unusual or odd or if you aren’t sure what something means, send me an email and I will try to address it in my next newsletter or blog post.
Books and Resources:
Small Business Tax Facts(Sole Proprietorships/Registered Businesses/Self Employed Workers)
This book helps you have a better understanding of tax (brackets, tax rates, deductions etc), how it applies to your unincorporated small businesses and how to do your own tax return (or at least understand what your accountant does). It also includes a comprehensive breakdown of deductible expenses, by category with special sections on more complex deductions such as home office, vehicle and capital cost allowance.
FastStart Your Corporation(Corporations)
A step by step guide to starting your small business corporation, including what you need to know about incorporation, setting up your accounting and tax considerations.
QuickStart your QuickBooks(Sole Proprietorships and Corporations)
A comprehensive guide that takes you through the many features of QBO and gives you step by step instructions on how to setup and work with QBO day to day. It is ideal for beginners who have never used QBO before and also for those who are currently using it, but have questions or need guidance.
FastStart Your Business (Sole Proprietorships)
A step by step guide for anyone who is planning to start a Canadian business or become self employed (and does not want to incorporate) and wants to know what they need to do or simply has questions.
Small Business and Your Dividends (Corporations)
For incorporated small business owners who want to know more about small business dividends, the differences between salary vs dividends and which is better and step by step instructions on how to file your own dividend declarations (T5s).
Use discount code “special” to save 20% on any (or all) book(s) when you purchase from the website.
Please note that all books on my website are in PDF format.
If you prefer a print version, all books are also available at Amazon . Note that print versions purchased on Amazon include a complimentary PDF - you just need to email me and include proof of purchase.
Free Resources
Business 2023 Tax Deadline Calendar Coming Soon
Business 2022 Tax Deadline Calendar
Starting A Corporation Checklist
Start Your Business Checklist
Dividend Declarations Checklist
Small Business Tax Return Checklist
QBO Set Up Checklist.
Small Business Calculators
Previous newsletters.
Consultations
I also provide consultation services where I can answer your specific questions relating to your small business and/or finances, provide clarity and give you guidance. Additional details can be found here and here.
Note that I no longer provide ongoing accounting or tax preparation services.
Reviews/Feedback
I would love to hear your comments on my current blog posts, topic ideas for new blogs, book feedback or anything else that you want to talk to me about. You can use my feedback form or email me directly at ronika@montrealfinancial.ca.
For anyone who has purchased my books through Amazon or directly and found them useful, I would be very grateful for a review on Amazon (to leave a review you only need to have an account with Amazon even if you did not purchase the book from there).
Finally, if you think anyone would benefit from this newsletter, you can send them to my subscribe link.
Wishing everyone the happiest of new years’!
Ronika