Monthly Archives: October 2010

Step 1 for a Healthy Cash Flow

 Cash flow problems go undetected when owners mix their own personal finances with their small business’ finances. This practice is very common among start-ups and is detrimental to your business.

Your First Order of business is to:

  1. Open a separate bank account for your business!

It may seem an expensive option at the beginning to be paying fees on two separate bank accounts; however you can claim the running costs of your business bank account as a business expense .The same applies to a separate credit card. Even if you have another credit card in your private name and only use it for the business expenses.

Always request a statement with a month-end cut-off date. This will make it easier for you to reconcile your statement and track expenses.

In order to open a business bank account, most banks will require proof that you have registered your business name with the Corporate Registrar’s office.

Deposit All Your Income. It can be tempting to pay expense from cash receipts But don’t – Be sure to deposit them into your business bank account and pay expenses separately from your business bank account.

Don’t mix your personal expenses with your business expenses.  An example of this is when you buy fuel; if you happen to buy milk or chocolate pay for them in separate transactions. You need to make sure that you have a legitimate business expenses and keep those personal items separate.

Warm Regards

Dianne Mueller, CPB- Certified Professional Bookkeeper

Gold Level Simply Accounting Consultant & Trainer

Soma Small Business Solutions

Self-employment and tax obligations “What you might not know”. (via Soma Small Business Solutions)

When making the transition to working for yourself, you will find that you must worry about a lot of tax obligations that weren't your problem when you worked for someone else. New Small Business Owners learn that they're responsible for twice as much CPP as they paid when they were employees. And they must make quarterly instalments to Canada Revenue Agency on the estimate profits that they are making in their business. They also learn that they … Read More

via Soma Small Business Solutions