Is it a Debit or a Credit? Cheat Sheet

Account Section Debit- will Credit-will
Assets Increase Decrease
Liabilities Decrease Increase
Equity Decrease Increase
Revenue Decrease Increase
Expense Increase Decrease
Posted in bookkeeping, Business Services, Sage 50 - Canadian Edition, small business, small business accounting, small business bc

How to Handle early-payment discounts and late-payment surcharges with your Customers

If you offer an early-payment discount on credit sales, you have to charge GST/HST on the full invoice amount even if your customer takes the discount.

Example

You operate a business in Manitoba and the invoice shows the price of goods as $100 plus $5 GST. The credit terms of the invoice give the customer a 2% discount if the customer pays within 10 days. GST is $5, even if your customer takes the discount. The customer pays $103 [$100 plus $5 GST minus $2 (2% of $100) early payment discount].

If you charge late-payment surcharges, you do not charge GST/HST on the surcharge. GST/HST is payable only on the original invoiced amount.

Example

If you charge $5 for the late payment on goods invoiced at $100, GST does not apply to the late charge. Therefore, GST is still $5 and the customer pays $110 ($100 plus $5 GST plus $5 late charge).

When you invoice an amount that is already net of the early payment discount, charge GST/HST on the invoiced amount.

Example

You send a customer an invoice with instructions to pay $108 if payment is made by March 23, or to pay $118 if payment is made after March 23. You charge GST/HST on the reduced invoiced amount of $108, even if the customer makes the payment after the March 23 due date.

Posted in bookkeeping, Business Services, Sage, Sage 50 - Canadian Edition, small business, small business accounting, small business bc

5 Steps to Reduce Small Business Fraud and Protecting Your Money!!

Small Business owners must put this best practices in place to protect their money from Fraud.

5 Steps to Reduce Small Business Fraud

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5 Steps to Reduce Small Business Fraud a

5 Steps to Reduce Small Business Fraud and Protecting Your Money!! http://ow.ly/FGYP1

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5 Steps to Reduce Small Business Fraud a

5 Steps to Reduce Small Business Fraud and Protecting Your Money!! http://ow.ly/FGYP1

Posted in small business

2014 Luca Awards

DianeLondon2014

 

Recently, Dianne Mueller traveled to London, England and received the ICB LUCA Award,  which could be called the Oscars of the bookkeeping world, recognizing outstanding achievement in the profession.  The 2014 LUCA Awards also were filmed, providing a nice glimpse of Dianne receiving her award from the HRH Prince Michael of Kent.

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Hey Vancouver!! Gain valuable insight an

Hey Vancouver!! Gain valuable insight and a deeper understanding of all the features in Sage 50 Accounting by attending an in-depth Hands On Lab training session in downtown Vancouver. Oct 6th 7th 8th & 9th . Register at http://www.sageu.com http://ow.ly/BoG76 http://ow.ly/BoGA3

Posted in small business

DISRUPTIONS TO THE BOOKKEEPING PROFESSION – A POSITIVE CHANGE?

Posted in small business

Soma Small Business Solutions

Soma …Soma Small Business Solutions Team
Solutions for Small Business

We are small business experts. We understand the challenges faced by small businesses in today’s economy. We have the experience and expertise to help you succeed.

Soma offers:

  • bookkeeping services to ensure your records are organized, complete and accurate
  • business consulting to show you how to increase profits
  • controller services to help you measure, analyze, improve and control your current processes
  • business start-up training to help you get off the ground correctly, quickly and efficiently, with the long term in mind
  • cloud accounting solutions to help you get out of the office and still have real-time answers anyway
  • classroom and internet based training to help you learn typical business processes and day-to-day bookkeeping
  • one-on-one training customized to meet your specific needs.

 

Videos to Help You Succeed

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Welcome to our new Site!

Simply Soma’s new site!

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