SR&ED: 5 Things To Know

Scientific Research and Experimental Development is a mouthful, but shortened to SR&ED or “shred” it may be familiar to business owners. A federal program designed to incentivize industry with tax credits, SR&ED and its benefits are enforced by the Canada Revenue Service (CRA). Most of the time, claims and reviews are a simple process-- but the following are five brief tips from the experts here at Liu & Associates. #5 Who can apply? Individuals, trusts and foreign-owned corporations are all eligible for SR&ED and its incentives. Canadian-owned private corporations can claim these benefits at an even higher rate thanks to ...Read More

BUSINESS TAX 101: Why/When Do I Need To Apply For A GST/HST Account?

  In Canada, most goods and services are eligible for at least one sales tax: the Goods and Service Tax (GST)-- some provinces are also subject to the Harmonized Sales Tax (HST). Most Albertans mentally factor in the 5% GST charge to day-to-day transactions, but there is more pressure on businesses to follow federal regulations. If you own or operate a business, it is vital that you do not overlook sales tax requirements. Review the Liu & Associates crash course on GST/HST accounts and contact us today with any questions or concerns.   WHAT IS A GST ACCOUNT? In order ...Read More

TAX IMPLICATIONS OF DIVORCE

While divorce and separation have bad reputations, they actually can lead to happier and better functioning families overall. Every case is unique, so there is a lot to consider when embarking on this difficult and emotionally challenging process. As with marriage, there are financial consequences to divorce or separation-- most importantly when it comes to taxation. If you are undergoing or planning to divorce or separate, consult Liu & Associates’ guide below to the tax implications of this very common life change.     UPDATE CRA First things first, you should update you and your spouse’s status with the Canada ...Read More

Why Do Home Builders Need An Accountant?

From large corporations to small boutique brands, one universal factor for home builders is that their finances can be quite complex. Most employ accountants or accounting firms but some may not understand how crucial these are in the construction industry. If you are curious why home builders need accountancy services, read on for Liu & Associates guide to this complicated issue. Real Estate & Construction Accounting Selling real property and constructing or renovating a property are viewed as distinct industries when it comes to finance. Though they share many fundamentals with general accounting, each makes use of different types of ...Read More

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