Blog Archives - BMP ACCOUNTING & TAX INC.

Congratulation to the Class of 2021!

6/25/2021

It’s June and there seems to be a surge of posts from proud parents because their son or daughter is graduating this year. Graduation is such symbolic event in a person’s life. It’s the end of one journey and the beginning of another.

BMP wishes to congratulate 2021 graduates! Well done. Now, here is our gift to you!

1 - Pay yourself first! I know you heard it so many times before, but honestly, if you save $25 every month today it will accumulate and it will become a habit. Starting out is hard and it seems like there are so many sacrifices, but trust me, you will be so grateful that you did start saving young because it doesn’t get any easier. If ever you feel like you will never achieve anything, think small steps…you will get there.

2 - File your taxes – on time and every year. It is so easy to put something off the first time. It’s no big deal. You will do it later…until the next year rolls around and now you are two years behind and the first thing you know it’s been five or more years that you have not filed your taxes. Don’t let this happen to you, but if it does, we still have your back.

3 - Talk to an accounting professional before you start your own business, so that your financial affairs are in order and don’t become overwhelming. Alert CRA and Service Canada if you have experienced a life event (e.g. marriage, divorce, separation, birth of a child). Failing to do so can cause you to owe money back to the government.

Above all, know that no question is a silly question. It is better to ask than for the question to go unanswered. We love answering questions even the ones you are embarrassed to ask. We are always here for you.

Planning a Profitable Summer?

6/18/2021

Well people, the moment we have been all waiting for is fast approaching. Summer is at our door step. For many, summer means long days spent with the children, on a patio sipping on a cold beverage, attending concerts (hopefully this will be a reality soon) or just dialing it down for a few months while the sun is shinning. But for some of us, it means that this is the season of opportunity. Summer gives rise to so many great seasonal business ideas from landscaping to wedding planning.

I remember helping out my friend one summer while on summer break from university. The company provided her with a business model and some pricing strategies. She worked so hard this summer – working long hours and learning how to be an entrepreneur. We were well into my favourite season when she approached me and told me that her take home pay was not what she had expected.

It is highly likely that if she had access to a bookkeeping software and some friendly advice that we would have noticed her shrinking profit margins was due to her pricing strategy and we could have righted the ship before the season was nearing its end.

An expert can give you proactive advice so that you do not end up working harder than you have to and can answer many of your questions.

Do I need to charge GST? How much should I charge? What do I need if I want to hire an assistant? Are they an employee or can I pay them as a contractor? What types of tips do you have to keep my financial affairs in order? If you are looking at starting your own business this year, please consider getting expert advice on how your books are doing. After all, you are great at what you do and we are too. Contact us for more information.

Don't Have Time To Do Your Own Bookkeeping?

6/11/2021

You are a great plumber…maybe a great electrician or a great hairdresser…but maybe keeping your books in order makes you run for the hills. You forgot your receipt in your car…maybe you forgot them in your wallet or even your toolbox…The BIGGEST favour you can do to save you countless hours (or money if you are paying a third party) is to keep a separate bank and credit card account for all things relating to your business.

For as little as $5 per month, we can set you up with a system that automatically categorizes your invoices. You can snap a picture of every single invoice via your smart phone or email any other invoices from your email address. Just like that, tax time just became easy. No more searching for lost receipts.

Have questions? Contact us for more information.

Five Ways Outsourced Bookkeeping Saves You Money

6/4/2021

If you have ever read Stretch: Unlock the Power of Less – and Achieve More Than You Ever Imagined by Scott Sonenshein, you know that buying all the best gadgets does not necessarily lead to more profits. Knowing where to invest your money is synonymous with being a good business person. We would caution, however, that trying to cut costs on bookkeeping may in fact hurt your business in the long run and here is why.

#1 : Not completely understanding your costs:
It is quite easy to nickel and dime yourself to death. We have had a few cases where the client did not understand how much money he was pulling out of their business because they lent their company money and kept mental IOU’s. In turn, they paid personal expenses through the business account. It was a real puzzle to figure out what was what at year end and they never knew why the business was not profitable.

#2: Cash Flow Woes:
Cash Flow issues is more common with seasonal businesses because it is easy to get swept up in the busy season and forget to put money away for the rainy season. However, all types of businesses can experience gaps in cash flow. This is why an experienced accounting provider can help you actively manage your cash flow and implement strategies to bridge the gaps when cash may not be as abundant.

#3: Profit Sabotages:
We have seen many different types of profit sabotages. They can come in the way of expensive or time-vampire clients. Your accounting provider can help you with your price strategies so your services or products remain profitable.

#4: Ignoring Your Accounts Receivables:
Any business person can get wrapped up in the day-to-day tasks and forget to keep an eye on who still owes you from three months ago. Shortening your turn around time on your receivables does improve your cash flow and, in lots of cases, saved a business from going under.

#5: Penalties for Non-Compliance
Last, but certainly not least on our list, are penalties paid for non-compliance. We know tons of businesses who have gotten themselves in trouble because they delayed filing for whatever reason. Delaying and avoiding has a snowball effect. A professional is there to keep you compliant and accountable.

Have more questions? We would love to chat.