Tag Archives: bookkeeper

Didn’t think I’d need a bookkeeper….maybe I do. If only I had time to find one.

The title of this blog was taken directly from an email conversation between a mentor and a start-up business owner. This new entrepreneur knew it was essential to seek out a professional mentor that had, as he put it, done this many times before. In this particular email he had two questions for his mentor.

  1. Do you actually charge interest on overdue invoices? 
    1. Sometimes I charge interest.  I expect that you have been phoning and nagging at least weekly.  If not, you must.


  2.   I’ve got a student who has agreed to help me out part time – she’s perfect in that she has great skills and is super flexible.  Only we haven’t come to any terms about her employment/contract/whatever.  I think the easiest thing for me to do is to sub-contract her, but I’m not sure if there are any pitfalls to this idea.  
    1. It is my understanding from my bookkeeper that if you hire someone on contract and they do not have other sources of income you may be declared their employer and have to pay Payroll Source Deductions retroactively.  If you hire them as an employee, you have to pay Payroll Source Deductions monthly for the previous month’s pays. 


  1. Do you have a book keeper?

    1. Didn’t think I’d need a bookkeeper….maybe I do. If only I had time to find one.


  2. You do need a book-keeper. 

This mentor had learned from building a successful business a bookkeeper was needed. Answers to these questions are possible through outsourcing to a professional bookkeeper and implementing a computerized bookkeeping system. It is imperative to invest a little of that start up money on quality and accurate bookkeeping records.

You’ll be on top of the game and the competition with a simple click of a button or a phone call to your bookkeeper. Your financial statement and month end reports fulfill the checklist of a well managed company for all stakeholders. The institute of Professional Bookkeepers of Canada www.ipbc.ca is a great resource to help you find a qualified bookkeeper.

Monitoring the progress of your business from the beginning stages is critical for new businesses to grow and you need to prepare a cash flow plan. A professional bookkeeper can help you prepare budgets, cash flow plans and a break-even analysis by looking at your projections of revenue over variable and fixed costs.

With accurate bookkeeping you will be able to check on progress such as increased profitability tracking, accounts receivable monitoring, and controlling expenses. How does the data compare with your projections? Are you on track or falling behind?

Clean tax records will keep you and your business in good standing with your banker, investor and Canada Revenue Agency.

Your bookkeeper and accounting software will provide monthly financial statements and reports that provide a precise road map of which direction to take your business in the future. No more sleepless nights wondering if you have made the right decisions. You will feel confident with the numbers to back you up. Start focusing on what matters and hire a professional bookkeeper today. The rest will follow!


Dianne Mueller CPB

Soma Small Business Solutions


Here Is A Checklist For Self Employed Owners Working on Their Tax Return This Weekend.

The end of the year is here for self- employed small business owners. (Sole Proprietors) A sole proprietor is a type of business entity that is owned by one individual and where there is no legal distinction between the owner and the business. The owner receives all profits and is responsible for all debts. The yearend profits of the business are combined with all other income that an individual might have and taxes are paid at the current personal tax rate.

Sole proprietors often feel overwhelmed, confused and nervous about preparing for their yearly tax filing; especially those new entrepreneurs that do not have a business or accounting background.

Your business year ends on December 31st each year and steps need to be taken to ensure you are not overpaying or underpaying the tax man. It starts with making sure your bookkeeping is done and up to date. Here is a checklist of task that should be completed every year.

End of Year Bookkeeping Checklist:

  • Reconcile Your Bank Account. This will make sure that an expense or deposit (sale) is not missing. Don’t forget about those monthly bank fees.
  • Catch Up On Invoices. Do you have work or product that you have completed but not invoiced for yet?
  • Record Transactions. – Have you imported or posted into your accounting system all transaction from your bank accounts, PayPal accounts, and credit card accounts. Search your pockets for receipts missed.
  • Personal Expenses. – are you missing any income or expense transaction related to the business that were deposited or paid from your personal bank account.
  • Categorize Expenses. – Make sure all of your income and expenses have been properly categorized to the correct business expense account.
  • Don’t Forget Mileage. – Have you recorded all the time spent in the car? Your daily commute doesn’t count.
  • Don’t Forget Home Office Expense Allowances. If you are operating your business from your home you may be entitled to expense a portion of your mortgage interest and utilities. Check with your accounting professional for your percentage.
  • Pay Your Estimated Taxes. Your tax return must be filed by June 15th of the following year. If you owe taxes and to avoid penalties be sure you’ve paid enough in estimated taxes for the year. If you need to make an additional instalment do it before April 30.

  • Check your Income Statement. Compared to prior years. Review for posting errors any amounts that have increased or decreased significantly.
  • Don’t forget to reverse stale dated cheques! 6 months from date of issue.
  • Record any year end accrual entries –and depreciation if applicable.
  • Check Accounts Receivable and Accounts Payable for accuracy.
  • Bad debt write offs, if any. (and hopefully there aren’t!)
  • Prepare A Budget for Next Year. To start creating a new budget take your profit and loss statement in your accounting software from this year and export it to an spreadsheet, and then you can easily add formulas to increase revenue next year by a percentage or reduce some of your expenses.
  • Do a review of your current insurance coverage. Life, business and equipment insurance, Is it adequate.

Armed with this checklist and the help of your accounting professional your year end will go much smoother. Your business books will be error free and your tax return will be accurate.

Soma Small Business Solutions

Dianne Mueller CPB – Certified Professional Bookkeeper
Institute of Professional Bookkeepers of Canada, Chair

Sage 50 Certified Instructor