by ABS Professionals | Dec 10, 2015 | Blog, Tax Preparation & Filing
Preparing Canadian Personal (T1) and Corporate (T2) Tax Returns are becoming progressively complicated due to yearly changes in Canadian Personal (T1) and Corporate (T2) Tax laws. Tax payers may struggle to abide by with an increasing burden of Canada Revenue Agency (CRA) filing and reporting requirements. Therefore, they may risk penalties for failing to comply with changes in lawmaking and miss valuable opportunities.
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by ABS Professionals | Dec 3, 2015 | Blog, Tax Planning & Strategies
As another year comes close to its end the last month is an extremely busy one. On a personal level everyone is gearing up for the Christmas season. There is decorating to be done, gift buying and wrapping is on the agenda, and then there is tons of entertaining and events to not only to hold but attend as well.
On the business level there is the year end that most businesses have to tend to, and somewhere within the multitude of thoughts that are running through your mind, there is some preliminary planning for changes to the company to make it more financial feasible.
It is also the time of year where people start thinking of making New Year’s resolutions that will affect them both on a personal and financial level. When it comes to the finances this must include some thought given to the tax situation because this is a necessary expense that almost all adults have to deal with. It is also an area of finance that so many people figure is out of their control so what is the point in planning or making resolutions about it when they can’t do anything about it? However, this is not the case as you can take control of your tax situation.
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by ABS Professionals | Dec 2, 2015 | Articles, Blog
There are a lot of people that have adapted to online shopping that didn’t normally use their computers for anything other than checking their email or perhaps playing a few games. The convenience of doing this has caught on and there are some great opportunities that are available for doing your Christmas shopping online. However, there are a lot of precautions that need to be taken at the same time. If you are a seasoned online shopper then you know all the potential dangers and pitfalls that you could be coming up against and you know how to avoid these.
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by ABS Professionals | Dec 1, 2015 | Articles, Blog
Usually when we are planning the Christmas budget the main focus is on the gift buying expenses. What we tend to forget is about all the additional expenses that comes with this festive season. If you take these into account when planning your budget then you will find that you are able to stick to it much easier and really keep your overall expenses down.
The Christmas decor
It usually begins with the Christmas decorating. It is really very difficult to refrain buying at least a few new ornaments and a core each year because of all of the wonderful selections that we are faced with as soon as Halloween passes. There is certainly nothing wrong with buying one or two pieces each year but these should be planned for and budgeted for. Try to make it a habit to only buy something that is really going to be put to good use, and that you are not just buying it because you have become enthralled with its looks. At the same time in order to prevent yourself from becoming overburdened with a multitude of decorations only buy if you are going to be replacing something which means getting rid of the original.
It is also a good idea to go through your Christmas decor and see what needs to be discarded and what needs to be replaced before you start out on your shopping ventures. Try to attack all the segment of the festive season as you would when buying any other type of decor for your home.
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by ABS Professionals | Nov 27, 2015 | Blog, Tax Preparation & Filing
Tax season for Canadian farm and small business owners may be months away, but experts generally recommend that you try to get a jump on at least organizing your records and bookkeeping.
The earlier you get organized – having everything you’ll need for tax filing easily accessible – the better off you’re likely to be when you actually need to file your taxes. However, one misstep many small business owners make, particularly if you’re in charge of relatively small operations, is filing taxes yourself.
The number of problems that can arise from that type of action – even if it’s well intentioned – are significant enough that small business owners should avoid it at all costs.
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by ABS Professionals | Nov 24, 2015 | Articles, Blog
There is no shortage of what we have to teach our children and we certainly need to concentrate on life skills that are going to carry them forward into their future. Part of these life skills is teaching them money management, and it is often the question as to at what age do parents start with this form of teaching.
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by ABS Professionals | Nov 22, 2015 | Blog, Business Planning & Strategies
Business owners are always looking for deductions in an effort to lower their taxes payable. It is important to consider expenses for accounting vs. deductions for tax may differ from time to time.
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by ABS Professionals | Nov 18, 2015 | Blog, Bookkeeping
Accountable Business Services presents top 10 reasons why you should keep complete, up-to-date and organized Records/Bookkeeping & Top 10 cons to not doing so.
Your Records/Bookkeeping should be:
- Reliable and complete;
- Provide you with the correct information you need to calculate your tax obligations and entitlements;
- Be supported by source documents to verify the information contained in the records;
- Include other documents, such as appointment books, logbooks, income tax and GST returns, etc.
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by ABS Professionals | Nov 11, 2015 | Blog, Tax Planning & Strategies
There are many Tax effective ways to Take Money Out of Your Business. When planning for a family small or medium sized business group, the main consideration is how much ends up in the family unit’s pocket. Here are three strategies to consider.
1. Declare a Dividend to a Lower Income Shareholder (includes kids over 18)
This is a great way to split income or pay for children’s post-secondary education. Consider the Taxes payable for one person making $120,000 verses three people making $40,000. There can be almost no Personal Tax (T1) owing on a $40,000 dividend when taking advantage of various credits.
The initial set up to accomplish this is important. You do not want to confer a benefit if your spouse or children are not already shareholders – if that is the case some planning can help alleviate this risk as there are still ways to get them in. Proper planning is necessary and varies depending on circumstances. Essentially and for the most part different classes of shares for each family member would provide the most flexible of plans
This strategy considers that dividend income is first Taxed at a corporate level – as such, shareholders can claim a Tax credit to offset Personal Taxes. The shareholder receiving the dividend may claim a grossed-up amount of income based on the approximate corporate taxes paid, and the dividend credit returns some of this inflated amount.
And the nice part is you do not have to justify family members working within the firm for this to work as is the case of paying wages. However, in the initial stages you would want to document how they purchased those shares so as not to be subject to various attribution rules.
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by ABS Professionals | Nov 4, 2015 | Accounting & Taxes, Blog
Thank you for visiting our web page. We are very proud of the quality of services that we provide and hope that by reviewing our website, that you acquire an understanding of who and what we represent.
Accountable Business Services (ABS) ABSPROF is an Accounting and Tax Firm located in Alberta offers Accounting and Tax Services in Edmonton, Calgary, Red Deer, St Albert, Strathcona County, Lethbridge, Medicine Hat, Fort Mcmurray, Grande Prairie, Airdrie, Banff Canmore, Lloydminster and all over Canada on a very affordable rates. We delights helping simple to complex clients with their accounting, financial, and Tax (T1 & T2) needs. We are able to help clients who are either employed or run a business in a variety of industries.
As Tax (T1 & T2) preparers and Tax (T1 & T2) consultants, we want to ensure your Canadian corporation, trust, or individual Tax (T1 & T2) matters are attended in a timely and effective manner. Meeting Canada Revenue Agency (CRA) reporting requirements is key to Tax (T1 & T2) compliance and success. Such informational returns, we will file to CRA on your behalf are Income Taxes (T1 & T2) along with related income and deduction schedules, farm programs, trust returns, estate returns, GST, T slips, payroll, and CRA Tax reviews just to name a few.
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by ABS Professionals | Oct 28, 2015 | Accounting & Taxes, Blog
The Small Business Deduction is a Canadian Income Tax (T2) Deduction available to Businesses that were Canadian-Controlled Private Corporations (CCPCs) throughout a particular Tax (T2) year. It cuts back the Part I Tax (T2) that a corporation would have to pay otherwise.
CCPC is a private corporation that is incorporated in Canada (Canadian resident) with perfectly no direct/indirect foreign control or public corporation, or listed on a foreign or any stock exchange.
Effective January 1, 2008 the Small Business Deduction rate is 17% federal Tax (T2) rate on active business income, dependent on the level of income (currently the limit is CAD$500,000); which would otherwise be between 15% to 28%. In other words it applies to the first $500,000 of a corporation’s income.
Active Business includes any business/trade income other than income from property, such as: rent and royalties, etc.; or a corporate that provides personal services, or has less than 6 full-time employees.
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by ABS Professionals | Oct 13, 2015 | Articles, Blog
If you offer your employee with a Cellular Phone or Internet Service at home in order for them to carry out their employment duties, the business use is not a Taxable Benefit. However, you must included the value of the personal use in your employee’s income as a Taxable Benefit.
Calculating the Taxable Benefit
As the employer, you are accountable for determining the percentage of business use and the Fair Market Value (FMV). You must be developed to justify your position if requested by the Canada Revenue Agency (CRA). The value of the Benefit is based on the FMV of the service, minus any amounts your Employee reimburses the company. You can only use your cost to calculate the value of the Benefit if it reflects the FMV. This means that if the Employee was to purchase comparable Services as an individual, what would they pay.
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by ABS Professionals | Oct 12, 2015 | Articles, Blog
On October 1, 2015, the Alberta government Released new Tax Rates to be brought in. In 2015, the change results in a pro-rated Tax Rate applied to all Income for the Tax year and in 2016 will be the full Tax Rates. We have prepared a table to illustrate the changes.
To see where you’d fall, you need to consider your Taxable Income and match that up with appropriate marginal Tax bracket.
NOTE:The Tax data used comprise the combined Federal & Provincial Tax brackets and Rates. This does not comprise any federal changes that could be introduced in 2016.
Accountable Business Services (ABS) ABSPROF a leading Accounting and Tax Services is providing the comparison of latest and previous Personal Income Tax (T1) Rate for Alberta.
| Tax Brackets |
2014 – Rate |
2015 – Rate |
2015 – Extra Tax |
2016 – Rate |
2016 – Extra Tax |
| First $44,701 |
25.00% |
25.00% |
$0.00 |
25.00% |
$0.00 |
| over $44,701 – $89,401 |
32.00% |
32.00% |
$0.00 |
32.00% |
$0.00 |
| over $89, 401 – 125,000 |
36.00% |
36.00% |
$0.00 |
36.00% |
$0.00 |
| over $125,000 – $138,586 |
36.00% |
36.50% |
$67.93 |
38.00% |
$271.72 |
| over $138,586 – 150,000 |
39.00% |
39.50% |
$85.61 |
41.00% |
$228.28 |
| over $150,000 – 200,000 |
39.00% |
39.75% |
$375.00 |
42.00% |
$1,500.00 |
| over $200,000 – $300,000 |
39.00% |
40.00% |
$1,000.00 |
43.00% |
$4,000.00 |
| over $300,000 |
39.00% |
40.25% |
>$1,000.00 |
44.00% |
>$4,000.00 |
You may want to consider reviewing your discretionary Tax saving vehicles such as RRSP’s and charitable donations in order to defer or reduce your Tax due come April!
For your employees, you may need to communicate why you’re deducting additional Tax. This post is entailed to articulate that you are deducting the full -rate Tax from pay cheques from October 1, 2015 which will be comparatively close to the weighted average rates for the year. For example, if you have an employee with an income of $165,000, you will be deducting the full rate as if it was 42.00% to “catch-up” on the total Tax deducted by the employer.
If you are looking for Accounting and Tax expert, than Accountable Business Services (ABS) ABSPROF is the right firm for you. We are the leading Accounting and Tax Firm in Alberta offers Services in Edmonton, Calgary, Red Deer, St Albert, Strathcona County, Lethbridge, Medicine Hat, Fort Mcmurray, Grande Prairie, Airdrie, Banff Canmore, Lloydminster and all over Canada on a very affordable rates.
For you Accounting and Tax related matters we are the pocket friendly Firm in Alberta. Feel free to Contact Us on our Toll Free Number: 1 (888) 556-7864
Contact Details
Accountable Business Services 9905 104 St NW T5K 2G5 Edmonton
Local # 780-850-4786, 403-478-6441
Toll Free: 1 (888) 556-7864
Fax Number: 780-669-7960
E-Mail: info@absprof.com
Website: https://absprof.com/
by ABS Professionals | Oct 8, 2015 | Accounting & Taxes, Blog
Small businesses are frequently in the right industry and have the potential to develop but are often bounded and suppressed by not looking of the financial management of the business. They have the misapprehended belief that only corporations and big businesses should take care for financial details, as Small Businesses should not emphasize over small financial matters. This cannot be more from the reality.
Accountable Business Services (ABS) ABSPROF located in Edmonton AB offers Small Business Accounting Service in Edmonton, Calgary, Red Deer AB at a very pocket friendly rates. We specialize in providing Accounting and bookkeeping Services to Small Business. In addition, we propose self-employed persons on startup situations. We advise you on structuring and Tax planning considerations during the start-up or learning phase. Our work is performed with due diligence and care. We ensure that your business is provided with timely and relevant data to help you arise in the market.
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by ABS Professionals | Oct 6, 2015 | Blog, Tax Planning & Strategies
Everyone knows that they have to pay their Taxes (T1 & T2) at the end of the year. For Canadians, that entails a notice of assessment, a Tax Return (T1 & T2), an audit or even some compounding of the three.
For many of these people, these things happen during “Tax Season.” But a smart business person knows that “Tax Season” really stretches all year long.
Whether you are running a farm by yourself or a large corporation with a squad of mates, Tax (T1 & T2) Planning has to be an constitutional component of your day-to-day operations. If you are not taking steps all year-round to derogate the amount you’ll finally have to pay in Taxes (T1 & T2), then you are costing your business vast amounts of income that it will never get back. That’s clipping directly into your profits.
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by ABS Professionals | Oct 1, 2015 | Accounting & Taxes, Blog
Organized, accurate Accounting and Bookkeeping is crucial for any business. You must keep a complete record of all your income and expenses. If you can’t maintain your financial records on your own, consider hiring a qualified, experienced Accounting or Bookkeeping expert to do it for you – it’s often well worth the investment.
As a Small Business owner you have more important things to do than keep your own Books or perform Payroll functions. Your time is better used for generating sales, prospecting new business opportunities, improving products or services, or servicing customers. We offer Accounting Bookkeeping and Payroll solutions that meet your business’s needs and enable you to spend more time doing what you do best–managing your business.
By becoming your trusted business advisor and going “beyond accounting”, Accountable Business Services (ABS) ABSPROF help you succeed in achieving your business objectives. Accountable Business Services (ABS) ABSPROF is one of the leading Accounting and Bookkeeping Professional service, which offers Accounting and Bookkeeping Services in Alberta specially Edmonton Area, St Albert, Strathcona County, Calgary, Red Deer, Lethbridge, Medicine Hat, Fort Mcmurray, Grande Prairie, Airdrie, Banff Canmore, Lloydminster and all over Canada at affordable rates. When you engage our services, we not only keep your Books and process your Payroll, but we help you improve your Financial Condition, Profitability, and Cash Flow!
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by ABS Professionals | Sep 22, 2015 | Blog, Tax Planning & Strategies
Fall is not often a time for Small Business owners to think about Taxes; nonetheless, farmers and truck drivers can get a jump on their Taxes and realize savings by Planning at once.
Many experts often preach that Tax Planning in the fall before year-end is a beneficial idea. Decisions and actions taken before the end of the current Tax year can reduce your 2015 Tax liability and guarantee you’re receiving all the credits and grants.
3 Main Goals of Tax Planning
There are 3 main goals to Small Business Tax Planning over the course of the year.
1. Reduce the amount of Taxable income to be as low as possible.
2. Lower the rate at which each dollar they earn is Taxed.
3. Avoid any missteps when filing.
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by ABS Professionals | Sep 16, 2015 | Blog, Tax Preparation & Filing
Tax interest and punishments add up lightning fast. If you did not file a Tax (T1 & T2) Return because you did not have the income to pay what was due, or you filed but simply did not pay, you have gotten yourself into quite a predicament. And the more you let this situation go, the more likely you’re going to pay for it and pay for it big.
We’re asked to pay Tax (T1 & T2) in Canada, and a significant amount of money of our profit goes to pay Tax (T1 & T2). Why not have a professional prepare your Tax Return (T1 & T2) and help you in Tax planning? The target of Tax Planning is to optimize or defer Taxes (T1 & T2) payable. Individuals are given the chance to prepare their financial matters in the most healthful means possible within the rules of the Income Tax Act. Many Canadians do not give much thought to Tax (T1 & T2) Planning until it is time to file their Tax (T1 & T2) Returns. However, it is the Tax (T1 & T2) Planning throughout the year that will save the most money at Tax (T1 & T2) time.
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by ABS Professionals | Sep 12, 2015 | Articles, Blog
CRA requires taxpayers to make quarterly Tax (T1 & T2) Installments when there’s a large amount owing in previous years.
If your net Tax owing for 2013 or 2014 was greater than $3,000 you likely received a letter from CRA stating you must pay your Income Tax by installments.
Quarterly Tax Installment Dates
- June 15
- September 15
- December 15
- March 15
If your primary source of income is self-employment then, your installment dates are December 31 and April 30.
CRA Tax installment Payments.
Note: if the deadline is on a Saturday or Sunday, the installment defrayal is due the next business day.
Canada Revenue Agency (CRA) will accuse you interest and penalties if your payments are not received by the due date or you pay less than the compulsory amount. Accountable Business Services (ABS) ABSPROF offers this reminder article to our clients to guarantee you do not drop a payment.
If your 2015 net Tax (T1 & T2) outstanding will be less than $3,000 then you don’t require to make quarterly payments even if you receive an installment reminder.
Tax installment payments are figured based on:
1. Your net Tax (T1 & T2) owing.
2. Any Canada Pension Plan contributions payable on self-employment and other earnings.
3. Any voluntary employment insurance premiums payable on self-employment and other eligible earnings.
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by ABS Professionals | Sep 11, 2015 | Accounting & Taxes, Blog
At Accountable Business Services (ABS) ABSPROF we mix big business service with a hometown atmosphere to deliver top-notch results from Tax Professionals that understand the needs of their clients from the individual to the corporation. With several locations in US like Houston, Atlanta, Miami, Orlando, Dallas, Houston, Fayetteville, Seattle, Montana, Los Angeles, San Francisco, Las Vegas, Washington DC, San Diego, Accountable Business Services (ABS) ABSPROF has started to serve clients from Pennsylvania to California and many other states.
Accountable Business Services (ABS) ABSPROF is committed to customer satisfaction and we utilize the latest in technology (Cloud Accounting / Paperless Office) to customize our service to fit our client’s needs while assuring the utmost security. We are a full service Accounting and Tax business, dedicated to professionalism, integrity and transparency. Our doors are open to your needs as they arise because many situations have Financial and Tax implications. Our US partner office is located in Houston, TX.
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