Understanding CERB and CEWS

Dear Clients:

A large Employer subsidy program CEWS has just started. It will give you 75% of the wages that you pay your employees.

People who have taken CERB will not qualify for CEWS.  You may like to pull yourself out of CERB and go on CEWS. Those who got CERB without being eligible, should also do so.

There are many Assistance Programs to help businesses cope up with Covid-19 damages.  Only some of the programs may apply to your business.  We are helping our clients to maximize their benefits.  We do so by matching program eligibility criteria with your business situation.

A key parameter in matching is your Current Operation (CO) Level.  For example, your CO level may be about 80% of the Regular Operation (RO) level. This represents an almost fully open business.  At 20% level you will be almost fully closed.  A partly open situation may be at 50% CO level. We would like to know your approximate CO level.

We would also like to know your Revenue in January, February, March and April.  We have now prepared the attached Form to get your answers.

Please complete the Form and send it back soon.

Teji Singh, Manager

H&T Accounting Service

T: 905-858-0775

F: 905-858-8645

Site www.hAndT.ca

Tex Returns Documents (Tax Slips)

Dear Clients:

We hope you are in good health.

For business proprietors and partners and their spouses we do have some time before filing their returns.

For others we are running short of time; deadline to file this year is June 1st.

For many of such clients, we have already filed the returns.  But some clients have yet to provide us their documents (tax slips).  We do have your T4s and T5s if we prepared these slips for you.  But you need to provide us other slips you may have.

Tax Planning takes time but can save a lot of taxes, many times hundreds of dollars and sometimes thousands.  If you bring your documents close to the deadline, we will not have enough time to do proper planning.

To save you maximum taxes we request that you provide us your documents soon.  Send these electronically or drop these through our office door slot at any time of your convenience.  Alternatively send these in the mail.  These days we do not meet our client’s in-person for reasons known to you.

Teji Singh, Manager

H&T Accounting Service

T: 905-858-0775

F: 905-858-8645

Website: www.hAndT.ca

3 Bookkeeping Mistakes To Avoid

BookkeepingWhen we start our own business, we do most things ourselves because of the new likeness and excitement which urges us to handle things on our own, even the things we don’t like, including the bookkeeping, and is not a task that comes easy. This is because you would not only have to deal with getting someone who can perform the tasks that you need to be done like keeping your accounting books well-maintained in an accurate manner because you think you have a grasp of the basics of businesses.

Here are 3 most common bookkeeping mistakes small and new businesses often make, along with our handy suggestions about how to avoid them for long-term business growth. 

Putting off Bookkeeping Process:

Sounds fun, but it’s not! If you’ve decided to handle those looming and deadlines tasks, then better be prepared for the consequences. Sooner or later, there will be an overwhelming sort of tasks which you need to update. The things can go even worse when you won’t have a clear idea of what’s happening in your business. And soon VAT and tax deadlines are looming, and you aren’t ready. 

Do’s:

The best thing you can do is put some effort to update your financial information in your dairy and check that you understand what your figures are actually telling you without doing minimum fuss and duplication.

Mixing both business & personal spending:

Thinking of mixing both business & personal spending is actually not a good idea to consider. It’s easy to lose track of what you have done so far as it creates a mess and confusion towards you, and soon you can find yourself out of nowhere. 

In just a few days you will begin to struggle to remember all your relevant bank or credit card statements which were necessary for your business, and wasting a lot of time is another task which will frustrate you from inside. 

Do’s:

Our recommendation is to go for a separate business credit or debit card so that you will always have a clear view, record and track of your business-related spending. Another benefit which you will get is it helps to avoid tax return mistakes.

Intricate Cash Flow:

Not collecting your receipts and purchase invoices might lose you a clear view of tracking your business cash flow. Not correctly coding all your income and expenditure creates unuseful reports for you and your business which will devastate business in the long run.

Do’s:

Well, it is advised to always keep an extensive record for your business receipts from the biggest to even the smallest expenses as it will help to reduce your VAT and tax bills. But it may come handy during scrutiny as HMRC could ask to scan your receipts reports. 

Updates on Major COVID-19 Government Assistance to Small Businesses

We hope this message finds you in good health.

In recent weeks, we brought to your attention about five Government Assistance Programs.

EI & CERB seems to be working well by now. Most of the eligible employers have started receiving these funds. CERB now allows you to earn some additional income to complement your $500 benefit.

The CEBA & TWS also seem working well. Most of the eligible employers have started receiving these funds.

Employers can start applying for 75% Canada Emergency Wage Subsidy (CEWS) starting today. Some of you may recall the employees you laid off earlier. If you now give them less hours than you gave in Pre-COVID time, the subsidy may work out to 100% of what you pay. Corporate owners on payroll may qualify.

Also coming on board is a new program, Canada Emergency Commercial Rent Assistance (CECRA). This will help tenants pay 75% of their rent for 3 months. The key eligibility criterion is that your revenue must have declined at least 70% from the Pre-COVID-19 levels. And those levels should be less than $50,000 per month. Government covers for the 50% of the rent; landlord takes 25% less and you pay 25% of your rent.

Should you need our help to follow up on any of these programs, please do contact us.

Teji Singh, Manager

H&T Accounting Service

T: 905-858-0775

F: 905-858-8645

www.handt.ca

All clients – CTS – Coping with Financial Damages Caused by Covid-19

Dear Clients:

We would like to inform you of a couple important developments on the Government Assistance.

On the CEBA program of $40,000 interest free loan, they have started taking the applications today. You can only apply online and through the bank you have a business account with.

The wage subsidy program has been split into two, Temporary Wage Subsidy (TWS) and Canada Emergency Wage Subsidy (CEWS)

The former program gets you 10% subsidy and the later one, 75% of the wages you pay.

They have yet to start taking applications on CEWS.

Let us know soon if you need more details on these programs.

Teji Singh, Manager

H&T Accounting Service

T: 905-858-0775

F: 905-858-8645

Web: https://www.handt.ca/