Corporate vs. Personal Accounting: What’s Right for You?
If you are looking to start your accounting career, one of the main decisions you’ll need to make early on is if you’d like to work in a private or public accounting setting. While similar in some regards, the two areas differ in a number of aspects. Read on to learn the difference between the two, and see which one suits your personality best! Private (Corporate) Accounting Private accountants (also referred to as corporate accountants) are employed by an individual company and look after accounting needs for that company only. Private accountants will generally need to have some background knowledge ...Read More
Will My Small Business Taxes Affect My Personal Taxes?
2016 Canada Child Benefit: A Primer
Last month ushers in the newest iteration of tax benefits for parents of young children. With the first payments being made on July 20, 2016, the Canada Child Benefit replaces a number of previous tax breaks for families - Canada Child Tax Benefit, the Universal Child Care Benefit, the family tax cut & the children’s fitness and arts tax credits. What's the New? This new take on tax breaks for parents of young children is purported to increase benefits for low and middle income families, while high income families may see reduced or even eliminated benefit payments. The Canada Child ...Read More
What to Do If the CRA Orders You To Pay Back Taxes
For some, getting a letter from the Canada Revenue Agency that your taxes have been reassessed - and that you owe back taxes - isn’t just a bad dream. The reality is that in most cases, the CRA has three years from your original date of assessment to reevaluate your income tax return. If they can prove willful or careless misrepresentation - or fraud - then the three-year window can be waived. What Can You Do? Pay up. CRA charges 5% interest calculated on a daily basis back from the original tax year - meaning that if you get a letter ...Read More
RRSPs vs TFSAs for Retirement Savings
It’s never too early to save for retirement. And it used to be very simple - open a Registered Retirement Savings Plan and saved as much as you can. Maybe if you’re a lucky high-earner with no debt or other liabilities, you are able to contribute to your retirement with investments beyond an RRSP. But, for the average earner, RRSPs are the way to go. Then in 2009 Tax Free Savings Accounts come along and now low and mid-level earners have options. Read on to find out the pros and cons of using RRSPs and TFSAs to save for your ...Read More
To Give or Not To Give: How to Spread Your Wealth
Traditionally, money and assets to be willed to children or charity upon the death of their parents. However, this isn’t always the best strategy - if it's feasible, it often makes better tax sense to gift or donate your assets in your lifetime. Read on to find out how you can make the most of passing on your wealth. Maximize Your Impact If you are in a position where you’ve amassed enough wealth that you couldn't spend it all in your lifetime, you can benefit both yourself and your children by gifting it to them now rather than later. ...Read More
What Is The Best Way To Leave a Property In Your Will
Vacations at the family cottage is a cherished tradition, and so it would make sense that you would want to pass it on for generations to come. However, passing a vacation property on to your children can have tax consequences for you & your heirs which could make the inheriting the family cottage a burden, not a gift. Read on to learn some tax strategies for passing on your vacation property. Sell Now or Inherit Later? It’s a persistent rumour that selling your cottage to your children instead of waiting for them to inherit it can mitigate their tax burden. ...Read More
7 Easy Bookkeeping Tips
Finances are important and there are best practices when it comes to keeping your books balanced. Liu & Associates knows the value of well-organized finances: peace of mind and confidence to face the future. Harness these strategies for yourself by consulting our list of the best bookkeeping tips! #1: Gotta keep ‘em separated. Always keep business and personal accounts separate for simplicity and efficiency. Crossover can incite audits and other financial consequences. #2: Always be prepared. Track your expenses to look for spending trends and plan for unexpected costs. Being prepared won’t stop the disaster from catching you off-guard-- but ...Read More
Year-End Tax Planning Strategies for Businesses
If you operate a small business or the finances of a larger organization, you may find tax season very frustrating. Each document can reveal missed financial opportunities or unnecessary costs that could make a crucial difference in these difficult economic times. Don’t get stuck in the same spot next year, consult Liu & Associates’ list below for some helpful tax planning tips to mitigate higher taxes for businesses. EMBRACE TECHNOLOGY Avoiding tax accounting software and computers is unnecessarily costs you or your business capital that would be better spent elsewhere. From labour costs to fees for late or inaccurate returns, ...Read More