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Professional Accountants

Audits Unveiled: How Professional Accountants Ensure Your Business’s Financial Health

It is crucial to keep an accurate and clear image of your financial situation in the changing and complex world of business. Professional auditors and accountants enter the picture at this point and play a crucial role. An audit goes beyond a mere financial review; it entails a comprehensive examination that provides insightful information about a company’s financial integrity. In this post, we will delve into the realm of audits, understanding how qualified Accountants in Mississauga, Brampton, and Oakville protect the financial stability of your company.

Learning about Audits

The financial statements, records, transactions, and internal controls of an organization are all subjected to a thorough and impartial assessment during an audit. Its primary objective is to determine whether the financial information presented by a company accurately reflects its financial position and performance. Audits go beyond identifying mistakes or fraud; they also assess the effectiveness of a company’s internal processes, its risk management strategies, and its compliance with relevant laws and regulations.

The Function of Accountants: Professionals

Successful audits are the result of professional accountants, who are qualified with their knowledge and experience. These professionals possess a deep understanding of accounting principles, regulations governing financial reporting, and industry standards. They carefully evaluate financial data, identify inconsistencies, and make strategic recommendations using a combination of their technical expertise and critical thinking abilities.

Here’s how certified public accountants utilize audits to ensure the financial stability of your company:

Identifying Exceptions

Anomalies or discrepancies in financial data can be indicative of errors or potential fraud. Trained professional accountants have the expertise to spot these irregularities and conduct thorough investigations to understand their nature and potential impact on a client’s financial standing.

Maintaining Transparency and Objectivity:

Professional accountants take an objective, independent stance when conducting audits. Without any conflicts of interest, they offer an independent evaluation of financial data. For the audit process to maintain its credibility and integrity, neutrality is crucial.

Evaluation of Risk

Auditors look for issues that could have an impact on a business’s financial viability. Businesses can apply ways to mitigate these risks by being aware of them, increasing their overall resilience.

Perspectives on Strategy

Audits go beyond ensuring accuracy in the present moment. They provide valuable data that can shape strategic decisions. The advice of accountants may lead to process improvements, cost-effective solutions, and heightened operational efficiency.

Thorough Examination

Accounting professionals carefully review financial statements, transaction logs, and supporting data. They verify the accuracy of financial data, ensuring that assets, liabilities, revenues, and expenses are accurately recorded and categorized.

Accountability and Openness

Within an organization, audits foster an environment of openness and accountability. By regularly conducting audits, businesses can instill confidence in stakeholders, showcasing their dedication to transparent and honest financial reporting.

Ensuring Legal Compliance

Businesses are required to adhere to all relevant laws and regulations. Accountants assess whether a corporation is in compliance with applicable laws and accounting standards, thereby aiding in the prevention of legal issues and penalties.

Analysis of Internal Controls

Strong internal controls are crucial for preventing and detecting financial irregularities. Accountants evaluate a business’s internal control systems to ensure they are effective in safeguarding assets and maintaining accurate financial records.


Our certified public accountants in Oakville, Brampton and Mississauga  lay a pivotal role in unraveling the intricacies of financial well-being through audits. They possess the expertise to render financial reporting transparent, accurate, and reliable. Beyond ensuring compliance, accountants offer valuable strategic insights through meticulous investigations, anomaly detection, establishment of internal controls, and risk assessment. Thanks to these dedicated professionals who diligently uncover the true state of a company’s financial matters, audits stand as a cornerstone of financial stability in a world where trust and precision are paramount. For dependable and trustworthy Audit Defense in Oakville, reach out to H&T Accountant Service today. They provide top-tier accounting expertise to their clients.

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Tax Returns

Common Mistakes to Avoid When Filing Your Tax Returns

According to one’s level of financial acumen, filing tax returns may be a complex process for many people. The procedure may be complicated and prone to mistakes due to the various forms, technical details, and constantly changing legislation. To avoid penalties, ensure accurate reporting, and maximize available tax benefits, it is crucial to steer clear of common mistakes while filing taxes. The most frequent errors to avoid while submitting your tax returns in Brampton are highlighted in this article.

Filling Out Forms Inaccurately: 

“Filling Out Forms Inaccurately: Tax paperwork must be completed accurately. Even a seemingly insignificant error, such as providing the incorrect Social Security number or transposing digits, might cause processing delays or errors that could affect your refund. Take an extra moment to verify all of your personal information and make sure you’re using the appropriate forms based on your filing status and sources of income.

Ignoring Foreign Account Reporting: 

It is imperative to inform the IRS of any foreign financial accounts or investments you hold. Failing to comply with this requirement could lead to serious consequences. Individuals are obligated to report foreign financial assets that exceed specified limits under the Foreign Account Tax Compliance Act (FATCA).

Failure to Report All Income:

One of the most significant mistakes taxpayers make is failing to disclose all sources of income. This encompasses not only the earnings from your primary job but also income from side jobs, investments, rental properties, and freelance work. Inconsistencies can lead to audits or penalties because the government gathers information about your income from various sources, including W-2s, 1099s, and other financial documents.

Neglecting State Tax Requirements:

Many taxpayers overlook their state tax obligations, focusing only on federal taxes. Each state has its own tax regulations, credits, and deductions. Neglecting state taxes could result in penalties or missed opportunities for financial savings. It’s crucial to understand your state’s tax laws and accurately report any income specific to that state.

Misunderstanding of Earnings and Deductions: 

While credits and deductions are crucial tools for reducing your tax liability, many people misunderstand them or claim ineligible expenses. Credits directly reduce your tax payment, while deductions decrease your taxable income. Not knowing which expenses qualify for deductions and credits can lead to missed opportunities for savings. Examples of common deductions and credits include student loan interest, mortgage interest, child tax credits, and education-related expenses.

Waiting Until The Very Last Moment: 

Delaying tax payment can result in rushed decisions, overlooked details, and a higher likelihood of errors. Begin gathering your tax records early to ensure you have ample time for careful examination, preparation, and filing. Filing under stress might lead to mistakes that could have been easily avoided with thoughtful planning.

Failure to Sign and Date: 

Although it might seem straightforward, forgetting to sign and date your tax return may cause it to be viewed as incomplete. A return that is not signed is the same as one that is not filed at all, potentially incurring fines and interest on any owed taxes. Be sure to thoroughly review your return before submitting it to make sure all necessary signatures are included.

When Necessary, Not Seeking Professional Assistance 

While many people can successfully file their taxes on their own, there are specific circumstances that call for expert help. Consultation with a tax expert or accountant may be necessary in the case of complicated investments, business ownership, international income, and ignificant life events such as marriage or property ownership. Their knowledge can guide you through complex tax problems and guarantee accurate filing.

Selecting The Incorrect Filing Status 

Choosing the right filing status is crucial as it impacts your tax rate, deductions, and credits. Some taxpayers may qualify for more than one filing status, such as “Head of Household” or “Married Filing Separately,” depending on their circumstances. Selecting the wrong status can lead to incorrect tax calculations and potential overpayment or underpayment.


To summarize, it is essential to file your tax returns a accurately to avoid fines, maximize your tax benefits, and preserve your financial stability. You can minimize errors and speed up the filing process by being mindful of common mistakes and dedicating time to review and double-check your tax return. Additionally, seeking professional advice when needed can offer peace of mind and help you make the most of your financial situation. For further information about tax returns consider consulting H&T Account Services. They provide expert guidance in managing your accounts. We offer tax returns in Mississauga and tax returns in Oakville.

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How Can Bookkeepers Help Businesses Identify Financial Opportunities and Improve Profitability?

Bookkeepers play a crucial role in helping businesses manage their financial records and maintain accurate financial statements. However, their contributions go beyond just recording transactions and balancing the books. Bookkeepers can also assist businesses in identifying financial opportunities and improving profitability. To get trustworthy and reliable Bookkeepers in Mississauga, you can go through the H&T Accounting service. They provide expert services to improve your business. In this article, we will explore the various ways in which bookkeepers can support businesses in maximizing their financial potential and achieving sustainable growth.

Accurate Financial Records:

Keeping precise financial records is one of the bookkeeper’s significant functions. Bookkeepers give firms a strong platform on which to examine their financial status by meticulously documenting all financial transactions, including income, spending, and assets. Bookkeepers help organizations discover patterns, track cash flow, and make wise financial decisions by maintaining accurate and current records.

Financial Analysis and Reporting:

Bookkeepers can produce financial reports that offer useful information about the financial health of a company. Businesses can evaluate their profitability, liquidity, and general financial health using reports including profit and loss statements, balance sheets, and cash flow statements. Bookkeepers can find opportunities for cost savings, revenue growth, and better efficiency by examining these reports.

Expense Management: 

Bookkeepers can play a climactic role in expense management, helping businesses identify unnecessary costs and reduce expenses. By carefully scrutinizing financial records, bookkeepers can pinpoint areas where expenses can be minimized, such as eliminating redundant services or negotiating better terms with vendors. Through proactive expense management, bookkeepers contribute to improving profitability by maximizing the value obtained from each dollar spent.

Budgeting and Forecasting:

Bookkeepers can assist businesses in creating budgets and financial forecasts, providing a roadmap for achieving financial goals. By analyzing historical data and market trends, bookkeepers can help estimate future revenues, expenses, and cash flow. This proactive approach enables businesses to make strategic decisions, allocate resources effectively, and seize financial opportunities. Regular monitoring and adjustment of the budget can help businesses stay on track and optimize profitability.

Identifying Revenue Streams:

Bookkeepers can identify revenue streams that may have been overlooked or underutilized. Through comprehensive analysis of financial records, bookkeepers can identify trends, customer preferences, and market opportunities that can lead to new sources of revenue. By highlighting these potential revenue streams, bookkeepers enable businesses to capitalize on untapped markets or develop new products and services, ultimately increasing profitability.

Financial Systems and Technology:

The financial systems and technologies that can simplify corporate operations and enhance financial management are well-known to bookkeepers. They can aid organizations in implementing accounting software, setting up automated data entry and reconciliation processes, and integrating different financial systems. Bookkeepers can improve financial information’s efficiency, accuracy, and timeliness by utilizing technology, enabling firms to make better decisions and spot financial possibilities.


More than just keeping records, bookkeepers are important collaborators in a company’s financial performance. H&T Bookkeepers in Milton can aid organizations in recognizing financial possibilities and boosting profitability by keeping correct financial records, offering financial analysis, managing expenses, helping with budgeting and forecasting, identifying revenue sources, and utilizing technology. Their knowledge and perceptions help people make well-informed decisions that promote long-term success and sustainable growth. Because of this, companies should acknowledge the vital role that bookkeepers play and take advantage of their abilities to optimize their financial potential.

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Key Responsibilities of an Accountant in a Business

What Are the Key Responsibilities of an Accountant in a Business?

The function of an accountant is crucial to any business’s ability to keep accurate financial records, comply with legal and regulatory obligations, and provide insightful analysis that informs strategic choices. The financial management of a business is crucially influenced by accountants, who provide their knowledge to maximize profits and guarantee long-term success. Accountants have the same duties everywhere they work, including Mississauga, Brampton, Oakville, Milton, and other places. Let’s discuss the responsibilities of Accountants in Brampton, and how they affect a company’s financial stability.


Accountants: What Are They? 


An accountant is a skilled professional who keeps track of financial transactions for a firm or organization, updates management on business performance, and generates financial statements. They are mostly in charge of creating and reviewing financial records, then. However, that only represents the very beginning of their duties when it comes to their position. They perform a sizable chunk of financial work as part of their tasks.


Contrary to popular assumption, an accounting job involves more than merely compiling financial data and performing mathematical calculations for clients. Furthermore, math prowess is not a requirement for earning an accounting degree. However, it does demand a significant amount of creative problem-solving and producing goal-oriented planning.


Responsibilities of an Accountant in a Business:


Although it is commonly accepted that they handle the finances, what exactly does an account perform daily?

That, of course, depends on the type of work they do. Additionally, an accountant’s regular activities could vary from day to day. The primary duties of an accountant often involve creating and reviewing financial records and making sure data is accurate and up to date. An accountant, however, can concentrate on more particular elements of a company’s financial department or specialize in fields like taxation or forensic accounting. They are required by law to carry out all of their work honestly, which is an essential component of their job description. Despite the variety of their duties, the following are their most typical accounting tasks:


Estimating and Financing:


The process of forecasting and setting budgets is greatly aided by accountants. They work with management to provide accurate financial estimates based on prior data, current market conditions, and corporate goals. Accountants compare actual financial performance to the planned amount, note deviations, and offer analysis to help in decision-making. Accountants aid in the creation of successful plans to reach financial objectives by evaluating and interpreting financial data.


Tax Preparation And Organizing: 


Accountants are well-versed in the rules and legislation governing taxes. They aid companies in navigating the intricate world of tax planning and guaranteeing that all tax requirements are met. Accountants find tax-saving options, keep up with the latest tax law changes, and provide advice on the best tax planning techniques. They accurately and promptly prepare and file tax returns, lowering the possibility of fines or audits.


Reporting on Finances: 


Balance sheets, income statements, and cash flow statements are among the financial statements that accountants are in charge of creating. Using these reports, stakeholders can evaluate a firm’s profitability, liquidity, and general financial health. They offer a thorough summary of the financial performance of a company. Achieving openness and accountability in financial reporting is made possible by accountants who assure adherence to pertinent accounting rules and laws.


Analyzing the Finances:


The analytical abilities of accountants enable them to decipher financial data and offer management valuable insights. To evaluate the company’s financial health, they look at financial ratios, trends, and key performance indicators. Accountants support resource allocation, strategic decision-making, and overall business planning by identifying strengths, weaknesses, and opportunities.


Financial Counsel & Advice: 


Accountants assist business owners and management as dependable financial consultants. They offer suggestions for cost-cutting, revenue-boosting, and monetary tactics to increase profitability. Accountants facilitate corporate growth and expansion by reviewing investment options, determining the viability of projects, and offering financial insights.


Keeping Financial Records: 


Maintaining accurate records of financial transactions is one of an accountant’s essential duties. Invoices, receipts, payroll records, and bank statements are just a few examples of financial data that must be organized and classified. To guarantee the quality and dependability of these data, which form the basis for financial analysis and reporting, accountants employ a variety of accounting software and systems.


Internal Checks and Risk Management: 


To protect a company’s assets and stop fraud, maintaining efficient internal controls is essential. To guarantee the accuracy and integrity of financial information, accountants build and implement internal control systems. They pinpoint risky spots and suggest precautions to take. To assess the efficacy of internal controls and offer suggestions for improvement, accountants also carry out routine audits and reviews.




In the corporate world, accountants have a variety of responsibilities that contribute to the success and financial stability of the company. Their knowledge is crucial for making wise decisions, from keeping accurate records to offering financial analysis and strategic recommendations. Businesses rely on accountants to effectively handle their financial affairs whether they are based in Mississauga, Brampton, Oakville, Milton, or any other region. Accountants in Mississauga play a critical role in the expansion and success of the companies they support by carrying out their primary duties.

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Getting the Most Out of Your Time: How to Make Time for Forex Trading

Forex Trading

The ease of engaging in the foreign exchange market is a predominant draw for many people.

The market remains open around the clock, allowing traders to integrate trading into their everyday lifestyle and make a significant income as an autonomous pursuit. However, it takes a significant amount of breakdown and dedicated practice to thoroughly grasp the underlying principles of trading strategy and market price movement.

Although monitoring charts for 40-60 minutes daily can help traders reach a skillful level to maximize their profits, mastering the fundamental principles of trading strategy and market price movement requires significant analysis and devoted repetition.

The forex market may be time-consuming, especially for rookies, to extract the nitty-gritty that may cost or benefit them. Therefore, we have compiled some expertise on where and why to make room for it so that it can open a route to earn some serious money.

Indulge in the Forex Back and Forth

Keep Forex at the back of your mind at all moments since we are mindful that your typical day is already filled with a substantial number of activities on its own. 

To keep Forex at the back of your mind, see almost any scenario as a possible training experience. Consider occurrences/events from a trader’s perspective and ask yourself, “how would this influence my current/future trades?” even if you’re flipping through a newspaper, paying close attention to podcasts, or watching the news. Stick to the world’s headlines to keep up to date on the newest economic trends.

It’s also a wake-up call to stop relying only on what other traders must declare when geopolitical tensions or natural catastrophic moments materialize. You shouldn’t assume every trader has your best interests at heart. Instead, stick to the world’s headlines to keep you abreast of the newest economic trends because investors become more cautious in times of geopolitical unrest. 

They also know how this adversely hampers currency valuation on Forex market results.

Reorganizing your Watchlist If Necessary

To flourish, any forex trader must regulate their expectations and emotions. The liquid market is rife with temptation for both newcomers and seasoned investors alike, but tracking the status of multiple currency pairings requires a significant investment of manpower. Therefore, reduce the volume of transactions and set up a certain period throughout the day to monitor your charts and indications.

Sometimes, this also makes it difficult to resist the lure of possible profits. Thus, it is not uncommon amongst traders to track the status of multiple currency pairings.

On the other hand, the constant monitoring of an immense range of currency pairings requires significant investment of manpower. 

In fact, for numerous market participants who only conduct trade on a part-time premise, the belief that they would be able to keep up with an ever-growing watchlist is ridiculous. 

As a result, you should reduce the volume of currency pairings you monitor and set up a certain period throughout the day to monitor your charts and indications. 

Take note of the currency pairings that you think may offer entry points. Nevertheless, there seem to be multiple trading tools that may ease you with this, such as alerts that will send notifications when the price of a certain currency crosses a specified threshold.

Choose a Window that Overlaps and Be Consistent

Why is Forex so prevalent among investors? Because the market is accessible 24 hours a day, every working day of the week, however certain times of the day have a greater possibility of turning a profit compared to other times. 

To make the most efficient use of your hours, choose one of such trading hours and commit a certain amount of time throughout the day to engaging in trades within that time frame.

Choose one of the trading hours when the market is most bustling and commit a certain amount of time throughout the day to engaging in trades within that time frame. There are several variables that come into play, but the most impactful one is your base currency Trading during periods when the trading hours of many key areas overlap is optimal. This timeframe has the greatest overlap length and most volatility, which opens the doors for profits.

During the periods when the trading hours of multiple key areas overlap, there is typically the greatest length of overlap and highest level of volatility. It is not surprising, then, that over 70% of all foreign exchange market deals occur during these periods.

Finding the opportunity to trade foreign exchange might be challenging at times, but it is essential for anybody who wants to achieve any significant level of profitability.

Multiple markets open at once boost trade volume and volatility, which is how much stock, or currency values vary. Due to the presence of volatility, it opens the doors for profits.

The Bottom Line

A big part of the forex market’s attractiveness is its availability round-the-clock, but the urge to enter the market may prove disastrous for those just beginning trading. 

While it could be alluring to perform continuously, continuing can quickly drain a trader’s funds and even wear out the most ardent forex traders. 

Therefore, it is important for anyone who wants to achieve significant profitability to find the opportunity to trade foreign exchange, but be careful and put your trading experience into play.

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Refrain from these 3 Critical Tax Blunders for your Next Tax Returns

Tax day is something that every year, folks of all ages sigh in displeasure as it approaches. This is because tax returns for the federal and state governments are due around this timeframe. You may ask why taxes are necessary, yet it is common. Canada has three tiers of government: executive, legislative, and judicial. 

Local governments are responsible for a wide range of functions. It is important to note that these governments are made up of various people, including lawmakers, CEOs, judges, and more. Taxation pays for these government employees’ salaries. Taxes, like everything else, come in all sorts and intensities. Working for a living necessitates the payment of taxes. 

Following your earnings, a fixed proportion (part) of your earnings is withheld. Customers who often shop are expected to pay sales tax, which seems to be a percentage of the retail price of purchasing the commodity. Likewise, property taxes are measured by the valuation of your land and must be paid by those who own real estate.  

Even though paying taxes is a legal obligation, it is deemed a moral responsibility to pay forward. Non-payment of taxes will result in unfortunate penalties (fines or prison time) if not paid by the due date.

Everyone throughout the globe groans as tax season rolls around. What you’re trying to assume is understandable to us. No one loves paying their taxes, even if they entrust their prep to a competent expert. The process of paying taxes, which every company owner must do, may be extraordinarily hard for those who have never done it before. 

Small companies are slapped with fines totalling billions of dollars every year due to the tax code’s complexity. Paying taxes faultlessly means managing your small company taxes endeavor all year long. Making a little effort throughout tax season becomes immensely more straightforward if you keep track of your real-time finances.

As far as many are concerned, but for now, let’s discuss 3 most critical tax blunders in details:

Misreporting earnings

Whether you overstate or understate your income, the best-case scenario is that you will request an inspection for rectification. A fraud accusation might also be the worst possible situation. 

Falsifying income or falsely declaring losses in order to seek tax refunds may lead to catastrophic sanctions. It goes without saying that a wonderful and unpretentious individual would never intentionally understate their earnings, and that is something we would never propose. 

However, errors may occur, particularly when attempting to balance bills and company payments in a reasonable timeframe. One pay month might have many payments from the same source. It’s possible to delay recording them until the next pay month. Taxes may be deducted from that distinct pay period if they fall within the same calendar year.

You’ll be compared to your stated income, and the CRA will also examine any payments you’ve received. If they don’t line up, your financial records might be examined by an agent demanding at your doorstep.

Because of this, you may remedy mistakes with amended forms submitted to the appropriate authorities. If you overstate your earnings, you’ll be in the same boat. A blunder is certain to happen at some point in the course of any endeavor. 

All year long, keep proper records to avoid future blunders. All financial and tax papers should be updated as soon as possible. Maintain complete and accurate records of all monetary transactions, including incoming and outgoing.

Putting off bookkeeping

Bookkeeping may be a hassle, and that’s something we whole-heartedly understand. The urge to file all receipts and paperwork is great, but this is rarely beneficial. If you use this tactic, you may not be eligible to reclaim all of the business tax deductions you are entitled to. 

Putting off recordkeeping until tax season is a terrible idea. It’s extremely rewarding to keep the whole thing structured, even if accounting doesn’t seem attractive at first glance (for you, but not for your business). 

Doing everything all at once makes becoming organized much more onerous. It’s also more difficult to recall exactly how much money you’ve spent, increasing the likelihood that you’ll overlook anything. 

You’ll feel intimidated by delaying arranging your documents until the end of the tax season, and your return may be inaccurate. With meticulous recordkeeping, you may utilize the expertness you get during the tax year to better prepare for your personal finances and your company’s financial future. 

It’s understandable if you’re behind on your records; it’s for your more lavish good to try not to wait until the end of the year to get unexpectedly caught up since it hurts your all-around collective rep. It’s a no-brainer!

Late payment & file a return

A company owner understands the essence of adhering to strict deadlines. There is a high expectation for others to reach their deadlines and a high level of effort put out to fulfill your own. When the CRA is concerned, don’t give yourself a break!

A common tax blunder that may have the most serious financial ramifications. In addition to the fines and fees imposed by the CRA, late filing incurs steep fines and costs and may pile up startlingly. 

If you don’t pay your taxes on time, you’ll have to pay additional penalties and interest on the debt. Long-term, they will be quite expensive for you. Don’t wait until you’re broke to pay. 

You may alleviate this dilemma through the use of a payment arrangement. Paying quarterly estimates in advance is preferable. 

If you make quarterly projected payments, you may perhaps be eligible for reimbursement. Bear in mind that accuracy and accountability are the two most important considerations to focus on when handling your company’s taxes. 

By implementing this sort of discipline, many of the blunders that other small company owners put themselves into go beyond the threshold if you work hard at being honest and transparent while also keeping solid, meticulous records.

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Are you Eligible to Apply to the Canada Recovery Benefit (CRB)?

 Canada Recovery Benefit

The Canada Recovery Benefit (CRB) provides income assistance to employed and independently employed individuals who are directly affected by COVID-19 and are not qualified for Employment Insurance (EI) benefits. The CRB is directed by the Canada Revenue Agency (CRA).

Contingent upon when you begin applying for the CRB, you can either get $1,000 ($900 after taxes retained) or $600 ($540 after taxes retained) for a 2-week time span.

On the off chance that your circumstance proceeds, you need to apply again. You must re-apply every 2 weeks as CRB does not renew automatically. You can apply for up to a total of 27 qualification periods (54 weeks) between September 27, 2020 and October 23, 2021.

Who can apply? (Eligibility Criteria)

To be eligible for the CRB you need to meet the following conditions for the 2-week period you are applying for:

During the period you are applying to:

  • You were not self-employed or employed for reasons related to COVID-19


  • You have had a 50% reduction in your average weekly income compared to the previous year because of COVID-19
  • You did not apply for or receive any of the following:
    • Canada Recovery Sickness Benefit (CRSB)
    • Canada Recovery Caregiving Benefit (CRCB)
    • Short-term disability benefits
    • Employment Insurance (EI) benefits
    • Québec Parental Insurance Plan (QPIP) benefits
  • You were not eligible for Employment Insurance (EI) benefits
  • You reside in Canada
    • You have a home in Canada and live there. An individual does not have to be a citizen or a Permanent Resident (PR)
  • You were present in Canada
  • Your age is at least 15 years
  • You have got a legitimate Social Security Number (SIN)
  • You have earned at least $5,000 in the years 2019, 2020 or in the 12 months before the date you applied from any of the following sources:
    • employment income (total/gross pay)
    • net self-employment income (taking into account deducting expenses)
    • maternity and parental benefits from EI or related QPIP benefits
    • employment income (total/gross pay)
    • regular or special benefits from EI if your EI claim began on or after September 27, 2020
  • You have not quit a job or reduced your voluntarily hours after September 27, 2020, unless it was necessary
  • You were seeking work during the period
    • As an employee or even in self-employment
  • You have not refused reasonable work within the 2-week period you are applying for
    • If you refused reasonable work, you will lose about 5 periods which is equivalent to 10 weeks of the CRB eligibility periods. Wait 5 periods before you can apply
  • You were not self-isolating or in quarantine because of travelling Internationally
  • You had filed a tax return in 2019 or 2020
    • Not required if you applied for less than 21 periods since September 27, 2020 and if you applied for period 21 (July 4-17, 2021) or a period prior to that

Individuals who are found to have fraudulent claims will go through consequences consisting of penalties and even jail time!

How CRB is taxed?

After the CRA retains a 10% tax at source, the actual instalment you get is $900 or $540 for a 2-week time frame, contingent upon your circumstance.

If you earn over $38,000

In the event that you acquire more than $38,000 net income in the scheduled year, you should repay some or all of the benefits at tax time!

You will have to reimburse $0.50 of the CRB for each dollar of net income you procured above $38,000 on your income tax return. You won’t need to repay more than you got that year.

When to expect your payment

If you are qualified for CRB, you can expect to receive $1,000 ($900 after-tax retained) or $600 ($540 after-tax retained) for every 2-week time span, contingent upon when you begin applying for the benefit.

Processing time without validation

  • Direct deposit will take up to about 3 to 5 business days if you have previously set it up with the Canadian Revenue Agency (CRA).
  • A mailed cheque should arrive in about 10 to 12 business days.

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Company Cars – Should You Buy or Lease a Car?

buy or lease a car

If you are considering leasing or buying a vehicle under your corporation, there are many tax implications and rules that you will benefit from understanding from the get-go. The biggest question to ask yourself before you go through with this decision is as follows.

Business vs. Personal Use

When leasing a vehicle under your corporation, you can benefit from this by dedicating the business-use portion of the lease payments. Furthermore, you can also deduct other operating costs for the vehicle on its tax return. Often, the vehicle is also used for personal use, and costs associated with personal use should not be deducted through the corporation or business, ensure that you are keeping in mind ethical practices when claiming tax returns or doing business deductions.

Taxable Benefits – Automobile Used by an Employee

If the purchased vehicle is made available for use to an employee for personal use, then you will not receive a taxable benefit. Rather the employee will be considered to have received a tax benefit from their profile. It is important to understand that the CRA is extremely strict when it comes to personal use, even commuting to work is considered personal use. Lastly, the income on the annual T4 slip for the employee can qualify for payroll deductions, this includes income tax, CPP, and EI.

Operating Cost Benefit

Now, understanding all these benefits is important because you do not want to claim the wrong deductions and land yourself in trouble. The operating cost benefit is a bit unique, it recognizes that the employer has covered all expenses through the year for the vehicle, even though it is being used for personal purposes. This benefit can be calculated by multiplying the personal kilometers driven with the specified kilometer rate for that year. For example, (%0.27 / km) for 2021.

Corporate Tax Deductions

If you decide to lease a vehicle, you will be eligible to deduct the monthly lease payments of that vehicle on the corporate tax return up to a limit of $800/month + GST/HST. On the contrary, if the vehicle is purchased, the first $30,000 of that vehicle can be contributed to depreciation on that corporate tax return, this falls under the capital cost allowance program. Not only this, but your corporation can also deduct the operating expenses for your vehicle, these include the following:

  • Fuel and Oil Costs
  • Repair and Maintenance Cost
  • Insurance
  • Licensing and Registration Costs

Mileage Tracking

Given that you are claiming vehicle costs for tax purposes, an ethical practice should be kept in mind which is why it is so important to track your mileage, In the event of a Tax Audit, you can provide documentation to support the business use of your vehicle. You can track your mileage using the following apps:

  • TripLog
  • MileIQ

Zero-Emission Vehicles

Given the rise in popularity of electric vehicles (EV), you should know that you might actually benefit from owning one. There are a few incentives that are worth checking out if you are an EV owner. In the case that you lease a vehicle that is eligible, you can qualify for a federal rebate worth $5,000. Not only this but if you buy a vehicle that qualifies you can get a 100% write-off in the year that you purchased this vehicle. Whereas this is only 30% for a gas-powered vehicle. But keep in mind that you can get either rebate or the tax write-off, not both! You can get more information about this on the Government of Canada website.

All in all, buying or leasing a company vehicle can be difficult and you want to ensure that you do not take any wrong steps. Well, you do not need to worry about this when you hire H&T Accounting Services for all your financial needs. Book a consultation with us today!

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Making Changes to the Financial Statements of your Small Business

Making Changes to the Financial Statements of your Small Business

Canadian small businesses are going to experience substantial changes to year-end financial statements in December 2021.

This text will review the forthcoming changes along with important points for business owners to consider moving forward.

1. Who exactly do these changes affect?

The adjustments will affect a huge amount of Canadian small businesses.

Small Canadian business owners who appoint an accountant to prepare “Notice to Reader” financial statements. These are also called “NRTs”, “Compilation Engagements”, and “year-end financial statements”.  

If your year-end financial statements are not “Audited/Reviewed” by an accountants in Mississauga, it can cause a negative impact to you and your business. 

2. What do you call these changes?

The “Notice to Reader” financial statements are going to be known as “Compilation Engagement” financial statements. The specific standard that many may be used to seeing is Canadian Standard on Related Services 4200 along with CSRS 4200.

3. When Do the Changes Take Effect?

These changes will be taken into effect for recorded financial statements for cycles ending by December 14, 2021 or after the resulting date.

4. Why are the guidelines of  financial statements changing?

Many factors are taken into consideration for changes to be made. The sole reasons are summarized below!

Standardizing the Amount of Work Put in by Accountants.

There is a broad range of work accountants do while preparing Notice to Reader Financial Statements.

As of now, your accountant is only entitled to get your financial information and put it onto financial statements. It can even mean bringing pieces together just for the compiling of an income statement and balance sheet. 

5. Who is entitled to utilize Financial Statements?

The existing “Notice to Reader” standard presumes that financial statements are just going to be used within business owners and their administration.  Though, in actuality banks and investors have access to these financial statements as well so that they can obtain loans and external investments.

To make sure Third Parties know what Compiled Financials imply.

Since there is such an array of the work accountants put in when preparing Notice of Reader financial statements, third parties such as a bank or investor might not know what they are staring at. 

In example, a prospective investor will find that the accountant that produced the Notice of Reader statement merged bank accounts and asked for the firm’s financial information. 

Even if that is not the case, the accountant might not even access any of that information which brings in a question of accuracy within the financial statements.

However, the new policy and standards will ensure what procedures the accountants are expected to follow when formulating Compiled Financial Statements. Which will also allow third party corporations to have more confidence with the accountants preparing accurate financial statements. 

To Ensure the Basis of Accounting by Businesses are the same. 

Reporting Standards today do not necessitate the basis of accounting procedure to be unveiled on financial statements.

Which makes things harder since there can be two different accounting procedures when looking at different businesses. 

Thankfully, the changes that are coming up will necessitate the basis of accounting to be stipulated on the financial statements.

6. What does this imply for business owners?

Do you think this will bring any change to you for being the owner of a business?

The accountant you are with will ask you a lot of questions.

Your accountant will get clear insight of your business which will help compile accurate statements. Questions such as

  • Basis of Accounting- What Basis of accounting was in use? 
  • Intended Users- Who will these financial statements go to? Who are the intended users that your business will share these files?
  • Third parties such as investors and banks- Will any third-party users be able to get any more information? The accountants will ensure that they have approved based on accounting being in place.
  • Consult with an accountant!

You have until December 2021 to ask any questions as the accounting firm will be preparing for the brand-new standards. 

If you have not heard anything from your accountant about this change, reach out to them now and examine how it will affect your business.

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Common Pitfalls In Your First Year Of Business And How To Avoid Them

Common pitfalls in your first year of business and how to avoid them

Starting a business is no small task, so we don’t treat it like one. It takes tremendous courage to take your magnificent caffeine-fuelled idea and turn it into a legitimate business. It can be both scary and exciting at the same time; scary as you’re investing all your time and energy into an idea without the guarantee that it will work out and be successful. 

We encourage entrepreneurs to begin with the end in mind. Because you’re right. It is a scary journey. But with the right plan in place, it doesn’t have to be quite as anxiety-inducing as a Google search tells us it’s going to be when we’re starting out.  

Here are the top 5 early-day pitfalls we see and how you can avoid them:

  1. The Tangled Personal/business Charlie Foxtrot Of A Bank Account

This is number 1 for a reason. If you decide not to do anything else, please do your future self a favor and open a separate bank account and credit card for your business. All of your expenses and income must run through here and come tax time, you will thank your past seld and first bump them fist bump for their thoughtful consideration.

  1. Trying To Do It All Yourself

Being an entrepreneur is hard work as it is, everyone has their talents and their enjoyments. At some point, you will want to outsource the non-core functions (marketing, accounting, etc.)  of your business. For obvious reasons, it is not viable to outsource everything in the early days, hence you will have to suck it up and work those overtime hours evenings and add that eighth day we wish they would add to the week. Although, having at least one person on your side can be critical to your success. Pick your least favorite thing to do and hire someone else that is good at it to do it.

  1. Getting Distracted By Opportunity

Once you make the jump, the world and opportunities really do open up. There is so much opportunity out there. Staying focused and committed to your task at hand can become quite difficult, especially if you are an ambitious individual. But it is important you stay focused. Setting goals will help steer you away from these distractions that might seem like they are great opportunities. 

  1. Ignoring Your Salary

If your business model does not include paying yourself, you are volunteering and not building a business! This is really important to understand, often you might think you are sacrificing for the greater but in actuality you are not. What do you pay yourself? What you are worth, of course! Even if you can’t afford to pay yourself in the early days, make a plan to do so. It will definitely pay off. 

  1. Not Knowing The End Game

What does success look like to you? Writing this down somewhere and looking at it constantly can help immensely during times of uncertainty, exhaustion, and overwhelm. Having a vision board can help in those tough times of duality.

These pitfalls can be hard to avoid all by yourself, H&T Accounting is here to help you and your business succeed. Call us today and discover how our services from our experienced team can help you take your business to the next level!

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