BOOKKEEPING vs ACCOUNTING: What’s the Difference?

When it comes to tracking your business’ income, spending and other financial realities, it can become overwhelming if you are not prepared. To accomplish this daunting task, many business owners and operators begin looking into bookkeepers and accountants. Whether independent, part of a firm or hired on to the business itself-- bookkeeping and accounting can be completed in many different ways. The question remains: what’s the difference? Read on for Liu & Associates guide to these two different types of financial services. What does a bookkeeper do? Also known as record keeping, bookkeeping includes but is not limited to tracking ...Read More

ACCOUNTANT’S FEES: Explained

When individuals or business owners consider hiring an accountant, they are likely trying to save money. Often the question arises: if I want more funds, why should I spend my limited budget on an accountant? This could lead to the incorrect assumption that accounting services are only for wealthy people or large corporations. Liu & Associates is here to set the record straight! Read on for our breakdown of typical accountancy fees and why they are worth your investment. What am i paying for? This is a common question when looking into an accounting service, especially when you are quoted ...Read More

Retail Tax Preparation Services vs. Accountants

There are three main tax filing options for you to consider: do-it-yourself, a retail tax preparation service or an accountant. Read on as we dive into the differences between retail tax preparation services and accountants and how you can decide which one is right for you. Experience Tax Professionals Tax preparation services employ ‘tax professionals’, not certified accountants. This is not to say that employees are not qualified to help you with your taxes, as training for these positions is usually quite rigorous; however, they do not possess a degree in accounting or the level of experience an accountant would ...Read More

Should I File My Own Taxes or Hire A Professional?

When it comes to the question of whether or not it’s better to hire a professional to handle your taxes versus doing it yourself, unfortunately, there is no single right answer. Read on as Liu & Associates discusses some key factors that will help you determine what path you should take next tax season. When to DIY Your Taxes Are Simple If you have had only one job in the past tax year, have no dependants and no investments, consider filing on your own by using a free online tax software. Your Financial Situation Hasn’t Changed When you purchase property, get ...Read More

Ways to Avoid a Small Business Tax Audit

Small businesses, due to their very nature, are under close scrutiny by the CRA. While there is no way to ensure you’ll never be selected for an audit, there are some ways you can decrease your chances. Read on for five ways to keep the auditors at bay.   1. Avoid Revenue Discrepancies When submitting your business revenue, consistency is key. If there are any discrepancies in your business income across any tax forms, that is a big red flag for the CRA and will usually warrant a further investigation. 2. Understand Industry Risk If you are in an industry ...Read More

4 Ways to Avoid A Personal Tax Audit This Season

Ah, the dreaded tax audit. While few taxpayers will ever actually face an audit, we all fear receiving that notice letter. Undergoing a personal tax audit can be a stressful and time-consuming experience - so how do you avoid it? While there is no sure fire way to ensure you never get audited, there are a few steps you can take that will minimize the chance of the CRA knocking on your door; read on to learn more! 1. Know Your Risk Certain industries have been flagged as “high risk” by the CRA. Contractors, restaurant serving staff, and mechanics are ...Read More

The 5 Biggest Retirement Planning Mistakes You Can Avoid

Planning for your retirement is arguably one of the most important financial goals you’ll ever undertake. Unfortunately, it’s easy to make a mistake now that might hurt your financial security down the line. The good news? These mistakes are easy to avoid! Read on to learn five common mistakes when it comes to planning for retirement, and how you can avoid them. 1. Not Having a Plan in Place According to a study done by the Employee Benefits Research Institute, 48% of workers have not calculated how much money they need to save for retirement. How can you reach your ...Read More

What’s a Tax Audit?

While the auditing process is meant to help maintain public confidence in the fairness of Canada’s tax system, it can be a stressful and onerous experience on a taxpayer. There are two main types of tax audits: business audits and personal audits. Read on to learn a bit more about each type, what you can expect if you’re selected for an audit of your own and how Liu & Associates can help. Business Audits A business tax audit is a process in which the CRA closely examines small and medium-sized businesses’ books and records to ensure they are complying with ...Read More

How to Plan for Retirement

Transitioning into retirement takes careful planning, so make sure you give yourself as much time as possible to prepare. While financial planning may seem daunting, there are many resources available to help ease the stress. Read on for a couple of tips on things you can do ahead of time to make sure that when the time comes for you to retire, you are ready to go! Apply for Government Benefits It’s a good idea to learn the timelines of certain government benefits, like CPP, so you can make sure you get your payments on time. Applications for CPP can ...Read More

Why You Should Consider Hiring an Accounting for Your Startup

Many startup owners will choose to manage their own accounting in order to save money wherever possible. However, if you aren’t experienced with business accounting, you could be making mistakes that could potentially affect the success of your business. Read on to learn how outsourcing your business accounting can save you time and stress. What Can an Accountant Help With? Accountants can offer their expertise at all business stages, from starting up to expanding. Business Formation During your startup’s early days, an accountant can help you with steps like: Selecting the proper business structure from a tax and legal perspective ...Read More