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RRSP Basics you Should Know

RRSP basics

RRSPs are one of the best methods of saving for retirement. However, many people do not fully understand this form of investment. The following are some basics you need to know about RRSPs. 

What is an RRSP?

A Registered Retirement Savings Plan is a sheltered account provided by the Canadian government to assist Canadians in saving for retirement. Contributions are tax-deductible and earnings are tax-sheltered. Contributors delay the payment of taxes until retirement, when their tax rate is lower than during their working years. 

How much can I contribute?

The holder of an RRSP can contribute 18% of their yearly income, up to their annual contribution limit. You can find your limit on your Notice of Assessment from the Canada Revenue Agency.

When should I start contributing to an RRSP?

There is no minimum age for beginning an RRSP. As long as you have employment income and file a tax return, you may set up and contribute to an RRSP. 

What investments can I hold in an RRSP?

  • Mutual funds
  • Exchange-Traded Funds (ETFs)
  • GICs
  • Stocks/Equities (both Canadian and foreign)
  • Certain shares of small business and venture capital corporations
  • Options, REITs, coins.
  • Cash
  • Investment-grade gold and silver bullion
  • Treasury bills (T-bills)
  • Bonds (government, corporate and strip bonds)
  • Canadian mortgages
  • Mortgage-backed securities
  • Income trusts

What investments are not allowed to be held in an RRSP?

  • Precious metals
  • Personal property such as art, antiques and gems
  • Commodity futures contracts

Where can I open an RRSP account?

  • Banks and trust companies
  • Credit unions and caisses populaires (cooperative, member-owned financial institutions)
  • Mutual fund companies
  • Investment firms (for self-directed RRSPs)
  • Life insurance companies

What happens when I turn 71?

In the year you turn 71, you need to convert or collapse your RRSP by converting it to an RRIF (Registered Retirement Income Fund), purchase an annuity or both. 

Things you should know:

  • Unused contribution room carries over indefinitely. 
  • You can set up a recurring transfer from your chequing to your RRSP so you won’t be left scrambling to find money to contribute.
  • First-time homebuyers can make a tax-free RRSP withdrawal of up to $35,000 to purchase a home through the Home Buyers’ Plan (HBP). You have 15 years to make equal installment contributions back to your RRSP to replace the funds you withdrew.
  • With the Lifelong Learning Plan (LLP), you or your spouse can withdraw up to $10,000 in a year to further your education, with a total limit of $20,000 over four years. Once your education is complete, you’ll repay 1/10 of the total amount you withdrew, every year, until it’s fully repaid.

 

For most Canadians, an RRSP is the most tax-effective investment they can make. Contribute to your RRSP while in a high tax bracket to get immediate tax savings, then pay taxes on withdrawals from the plan while in a lower tax bracket. 

Looking for business and investment advice? Contact Cook and Company Chartered Professional Accountants. We are based out of Calgary, Alberta, serving clients across Canada and the United States. We provide high-quality tax, assurance and succession planning services for a wide variety of privately-owned and managed companies. Contact us for a complimentary consultation.

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Advantages of Hiring a Bookkeeper

Advantages of Hiring a Bookkeeper

Business owners need accurate, up-to-date financial information in order to make good business decisions, maintain CRA compliance, support readiness in case of an audit and provide preparedness for the possible future sale of the company. Keeping track of business transactions and ensuring accurate books is complex and time-consuming. A bookkeeper can help. 

What are the duties and responsibilities of a bookkeeper?

A bookkeeper is a person whose job is to keep records of the financial affairs of a business. He/she undertakes a variety of tasks including:

  • Recording the financial transactions of your business (incoming and outgoing) and posting them to various accounts
  • Processing payments
  • Conducting daily banking activities
  • Developing a system for organizing sales, purchases, payments and receipts
  • Identifying trends and how they apply to your business
  • Producing various financial reports
  • Reconciling reports to third-party records such as bank statements
  • Providing a complete set of year-to-date accounting records
  • Supplying information regarding the performance of your business

Advantages of hiring a bookkeeper:

  • Saves you time: Bookkeeping tasks are time-consuming and tedious. Hiring a bookkeeper relieves you of these duties, allowing you to dedicate your time to growing your business. 
  • Saves you money: The cost of outsourcing your bookkeeping is usually less than employing a full-time bookkeeper. A bookkeeper’s detailed records will save you money by reducing the time your CPA needs to analyze your accounts.
  • Prevents errors: Mistakes are costly. Having a bookkeeper means your books are up-to-date, organized and accurate. 
  • Eases budget creation: A bookkeeper will examine your revenue and expenses, providing you with budget tips that help reduce spending, assist in efficient business operations and contribute to profitability.
  • Enables better business decisions: By identifying spending patterns and sales trends, providing forecasts of seasonal ups and downs, recognizing money-making opportunities, avoiding cash-flow problems and finding ways to increase income and/or decrease spending, a bookkeeper provides you with the information you need to make good decisions for your business.
  • Contributes to effortless tax season:  A bookkeeper provides up-to-date accounting records and a year-end financial statement making it easier to prepare accurate and complete tax returns and avoid tax penalties.
  • Allows maximum tax deductions: Proper bookkeeping allows you to take advantage of all possible input tax credits and deductions. 
  • Ensures compliance with the law: A good bookkeeper complies with the latest legal regulations and remains up to date with recent legal changes. 
  • Provides audit preparedness: Accurate and up-to-date records ensure a smooth audit process. 
  • Promotes ease of securing loans and/or investments: It’s easier to secure capital when you’re able to clearly outline your business’s performance and financial position. 
  • Reduces risk: A good bookkeeper can detect fraud and/or embezzlement, helping you spot suspicious business transactions.  

Businesses benefit from the assistance of a qualified, professional bookkeeper. These professionals help companies through all stages of start-up and growth.

Need professional bookkeeping and accounting services? Looking for business advice? Contact Cook and Company Chartered Professional Accountants. We are based out of Calgary, Alberta, serving clients across Canada and the United States. We provide high-quality tax, assurance and succession planning services for a wide variety of privately-owned and managed companies. Contact us for a complimentary consultation.

References:

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What you Need to Know to Start a Business

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Starting a business is exciting! It’s also scary! Approximately 95,000 new businesses are created each year in Canada while 85,000 businesses close annually. Less than 50% of  Canadian businesses last 10 or more years. If you’re thinking about starting a business, there are some important steps that you should know to help promote your chances of success.

 

  • Generate an idea: The hardest part of starting a business is coming up with a great business idea. Watch current business trends. Examine budget and profit potentials. Consider your skills, goals and passions. Do you desire to improve upon existing concepts or contribute something new to the market? Do you want to own your own business or purchase a franchise?
  • Do the research: Market research combines consumer behaviour and economic trends to confirm and/or improve your business idea. It helps determine if there is an opportunity to turn your idea into a successful business and helps you reduce risks. Have a look at the demographics of your potential customer base (age, wealth, family, interests, income). If possible, talk directly to potential customers (surveys, questionnaires, focus groups, in-depth interviews). Observe your potential competitors. Peruse their websites. Talk with similar businesses. Keep up with the latest small business trends.
  • Choose a business structure: Which of the three basic business ownership structures you choose influences your day-to-day operations, taxes, personal liability, risk, capacity to acquire finances, etc. A sole proprietorship is a business owned by a single individual, is easy to form and gives you complete control of your business. A partnership is a company jointly owned by two or more people whose shares, rights and responsibilities are spelled out in a partnership agreement. It’s the simplest structure for two or more people to own a business together. A corporation is a business owned by shareholders. This form of business ownership protects its owners with limited liability.
  • Develop a business plan that can be presented to investors and lenders. It’s a roadmap for how to structure, run and grow the business. It guides you through each stage of starting and managing your company. The plan should include an executive summary, a company description, market analysis, a description of the organizational and management structure, marketing and sales plan, details regarding products/services offered, financial projections and funding requirements.
  • Choose a name that communicates what your business does in a visually interesting, memorable, and positive way. Take into account legal considerations. Protect your name by registering it with the right agencies both federally and provincially.
  • Find funding: Your business plan will help you figure out how much money you’ll need to start your business. If you don’t have enough funds of your own, you’ll need to raise or borrow capital. Consider a line of credit, a business bank loan, venture capital, crowdfunding, angel investors, private lenders, a merchant cash advance, invoice factoring, business-to-business lending and/or government-sponsored small business grants, loans and/or subsidies.
  • Get a business license: You may need to get a business license before you can operate legally within your municipality. If your city or town doesn’t have a website, you can find contact information for government agencies online.
  • Pick a location: The location you choose (including an online store) affects your taxes, legal requirements, and revenue. Take into account the location of your target market, business partners, and your personal preferences.  Consider the costs, benefits, and restrictions depending upon location (salaries, minimum wage laws, property values, rental rates, insurance rates, utilities, licencing fees, zoning ordinances, etc.).
  • Register for GST/HST/provincial sales tax so you can take advantage of Input Tax Credits which assist your business in recouping GST/HST paid out on purchases for business use.
  • Open a business bank account to help handle legal, tax and day-to-day issues. Common business accounts include a checking account, savings account, credit card account, and a merchant services account. Rates, fees, and options vary, so shop around to make sure you find the lowest fees and the best benefits.

 

Embrace both the excitement and fear of starting a business! Put yourself on the path to successful entrepreneurship. Follow the key steps outlined here to help ensure the success of your endeavour.

 

Thinking of starting a business? Need help, guidance and advice? Contact Cook and Company Chartered Professional Accountants. Whether you wish to operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to help you. Contact us for a complimentary consultation.

 

 

Resources:

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Preparing a Business Budget

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A budget is a financial plan for a company’s future; an estimation of revenue and expenses over a specified period of time. Creating a budget for your business promotes accurate goal-setting, assists in writing a business plan, informs spending decisions, unifies stakeholders, attracts investors and aids in determining staffing needs. It makes operating your company easier, more efficient, gives you the best chance of achieving your long term goals and helps you reap rewards for your hard work. So, how do you go about preparing a business budget?

 

  • Tally income sources: Determine how much money your business brings in each month and where that money comes from. Tally sources for a 12 month period. Look for seasonal patterns.
  • Determine fixed costs: Fixed costs are expenses that don’t change. They may occur daily, weekly, monthly or yearly and include payments such as insurance, rent, website hosting, payroll, bank fees, accounting and legal services, supplies, debt repayment, taxes and equipment leasing.
  • Include variable expenses: Variable expenses are costs that change each month based on your business performance and activity such as usage-based utilities, shipping, packaging, sales commissions, travel costs, inventory, production costs, professional development and marketing.
  • Predict one-off costs: These costs fall outside the usual work of your company. They may be start-up costs (equipment, furniture, software) or infrequent expenses (business course, cost of moving to a new location, purchase of real estate, purchase of new equipment, large-scale facility upgrades, severance pay, etc).
  • Create a contingency fund: Prevent the problems associated with unexpected costs by keeping extra cash on hand for difficulties such as equipment breakage, inventory damage, a security breach, etc.
  • Put it all together: Tally the total income and expenses. Then compare cash flow in to cash flow out in order to determine profitability. Adjust the figures throughout the year. As projections change, alter how money is spent and allocated.
  • Create a budget spreadsheet: A simple spreadsheet provides you with all the information you need at a glance making summarizing and reviewing your finances easy. Make budget evaluation a regular habit. Monitor and adjust numbers as needed.

Creating a budget takes time and effort but it’s worth the toil. Budgeting gives you the insights you need to make good decisions regarding your company’s finances. It’s an essential process for all businesses and will help you grow your company, compete and ensure a solid emergency fund.

Need help preparing a budget? Contact Cook and Company Chartered Professional Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to help your business. Contact us for a complimentary consultation.

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How can an Accountant Benefit your Business?

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To make good business decisions and ensure a healthy cash flow your financial data must be current and accurate. The process of keeping your information correct and up to date is complex and time-consuming. A professional accountant can help. But accurate data is not all an accountant offers. Your accountant can assist your business with:

 

The Start-up Process:

Your accountant can help create a strong foundation for your business by:

  • recommending the business structure that will best suit your business objectives, finances, and circumstances (sole proprietorship, corporation, partnership or other).

  • helping develop a business plan.

  • providing advice regarding accounting software.
  • assisting in the opening of a business bank account.
  • offering ideas regarding market opportunities.
  • providing advice for keeping personal and business expenses separate.
  • offering information regarding raising finances through loans, crowdfunding, investors or other types of financial opportunities.

 

Daily Business operations:

Once your business is up and running, your accountant can help by:

  • providing reports that monitor your financial progress, so you can make adjustments where necessary.
  • overseeing payroll.
  • helping set up accounting software.
  • providing advice regarding debt management.
  • helping you deal with unpaid invoices.
  • preparing and filing business taxes.
  • assisting with writing loan applications.
  • producing an accurate budget.
  • helping you take advantage of business deductions.
  • recommending strategies for inventory management.
  • preparing for and guiding you through an audit.

 

Business growth:

When you’re ready to grow your business, an accountant is an invaluable resource. Your accountant can:

  • provide insight on cash flow patterns, inventory management, pricing, and business financing.
  • present information on property and equipment leasing and purchase.
  • help you come up with strategies to manage cash flow.
  • create financial forecasts to assist in decision making.
  • help in creating a business budget that will support your goals.
  • assist with goal setting and give you tools to measure your progress.

An accountant is an invaluable resource for your business. They will provide you with advice and information to help you establish, operate and grow your company. Enlist the help of a professional accountant to help maintain the fiscal health of your business.

Need help with start-up, daily operations or business growth? Contact Cook and Company Chartered Professional Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to help your business. Contact us for a complimentary consultation.

References:

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Accounting Software Benefits

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Though spreadsheets have been helpful in accounting processes for many years, they can’t meet the demands of modern business. Accounting software is now widely used by many sizes and types of companies. It may be desktop software installed on an office computer or cloud software that can be accessed from anywhere. These systems provide features such as time and attendance tracking, direct deposit, check printing, storage of payroll records, form printing, management of multiple money types (i.e. tips and commission), deduction calculation (taxes, insurance, retirement) and tax filing. There are numerous advantages to using one of the many accounting software packages.

  • Reduce costs: Processes that took several hours and required a team of workers can be accomplished by a single employee in a few hours allowing for a reduction of the number of staff in an accounting department.
  • Increase efficiency: Accounting software performs tasks automatically or requires only a few minutes of time freeing up team members to focus on more important tasks.
  • Reduce the need for specialists: Learning to use accounting software is relatively easy allowing you to assign the task to an employee without an accounting background. It’s simple to train several employees in its usage making it easier to cover vacation or sick leave.
  • Minimize errors: Since data is entered only once and withholdings are automatically calculated, the risk of human error is significantly decreased.
  • Track inventory: Many quality software packages can track product inventory and provide up-to-date details on the amount of stock in hand.
  • Generate reports: Accounting software provides detailed reports on your business processes and helps track money flow in your organization. You can get a clear picture of your costs and revenue at any time.
  • Ease access: Information (historical and current) is stored and easily and securely accessed by supervisors and/or managers. Benefit information is available to employees who can make and review claims online. You can review, reprint, and resend invoices if needed and easily search by invoice number, name and/or amount.
  • Protect the environment: Accounting software decreases paper usage reducing your carbon footprint and eliminating excess waste.
  • Enhance data security. Most accounting software uses state-of-the-art security to protect sensitive data and reduces the need to send private information to a third party.
  • Create an audit trail: With accounting software, you can easily review payments and check tax in a matter of minutes.
  • Ease use of multiple currencies Many accounting packages allow a business to trade in multiple currencies with ease. Problems associated with exchange rate changes are minimized.
  • Increase compliance with the CRA: Some systems provide reminders of filing deadlines reducing penalties and keeping your business compliant. They’re programmed to calculate deductions and taxes for your location and can access updates related to tax codes and changes in tax law. These programs can be set to alert key people to review new compliance requirements.

Reduce costs, increase efficiency, minimize errors, ease access to information, enhance data security and increase compliance by using accounting software. Choose a system with tutorials, a comprehensive support services package and features that suit your business needs. You will not regret the investment.

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Questions You Should Ask Before You Hire an Accountant

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An accountant can save you money, help you avoid difficulties with the CRA, assist you in growing your business, provide useful information/advice, prepare profit and loss reports, balance bank statements, prepare tax forms, assist with payroll and help you stay compliant with government regulations. With so many choices (firms and individuals), you may have to do some investigating to find the accountant that is right for you. Ask prospective agencies the following questions and listen carefully to the answers.

 

    • How long have you been in business? Look for an accountant that has experience with and understands the difficulties you face; a firm that has a record of supporting businesses with similar challenges.

 

  • What licenses do you/your staff have? The CPA (Certified Public Accountant) designation is the most respected credential.

 

    • What services do you provide? Most CPAs provide a range of services (monthly bookkeeping, payroll processing, tax preparation, payroll taxes, profit and loss reports, business advice, audit representation, etc.). Make sure your accountant offers what you need.
    • What kind of clients do you work with? Look for an accountant who has worked with other businesses like yours and knows the ins and outs of your industry.
    • Do you have references that I can contact? Reputable accountants will provide references upon request. Talk to some of the references you’re given. Ask them if the accounting firm can accomplish what they promise.
    • What is your fee structure? Ask about billing options; explore hourly, monthly, flat and project-based rates. Get an estimate of likely fees.
    • What’s your experience with the CRA? Ask if the firm is qualified to represent you in a CRA audit and how many tax audits they have participated in.
    • What’s your tax philosophy? Is the prospective accountant cautious, assertive or aggressive about tax deductions? Find an accountant who agrees with your philosophy.
    • How often will we communicate? Can you call them when you have issues? Will you meet mid and end of the year or quarterly? Make sure you feel comfortable with the frequency of communication.
    • How do you communicate? Firms may communicate in person or via telephone, email, Skype, teleconferencing and/or other online services. Be sure you are comfortable with their style of communication.
    • How long will it take for you to respond to my queries? Will they respond to you within a day? A week? A month? Specify your desired time limit.

 

  • How do you keep up with changes in your profession? Ask about the firm’s ongoing professional development strategies. Do they keep up on the news, information and technology that affects their field?

 

  • Why should I hire you? A firm should be able to explain what makes them uniquely qualified to help your business.

Finding the right accountant for your business is crucial and may seem daunting. Use these questions as a starting point for assessing the suitability of potential firms. It’s worth the time and effort to make sure you hire the accountant that matches your company’s needs.

Looking for an accounting firm to help your business? Contact Cook and Company Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company use their experience and expertise to help your business. Contact us for a complimentary consultation.

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Can I get Tax Benefits for Insurance I offer my Employees?

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Employers may choose to offer life, health and/or disability insurance to their employees. Should your business offer these benefits? Will your company’s insurance expenses be tax deductible?

 

  • Group Life insurance is term insurance with your company holding the master contract and coverage extending to your employees. It’s relatively inexpensive and usually garners high participation among employees. If a life insurance policy is owned by your employees, but the premiums are paid by your company, you may deduct the premiums against business income as long as the premiums are a reasonable business expense. If you have shared ownership of the policy with your employees, the premiums are not tax-deductible.

 

  • Group Health insurance plans provide coverage (supplemental to government health care plans) for a company’s employees at a reduced cost. If the health insurance policy is owned by your employees, but the premiums are paid by your company, you may deduct the premiums against business income as long as the premiums are a reasonable business expense. Premiums are not deductible if paid for shareholders who are not employees.

 

  • Group Disability insurance provides a percentage of pre-disability income (for a specified period of time) when an employee is unable to work due to illness or injury. Typically employers purchase plans that cover 50 to 60 percent of income. Disability insurance premiums are paid with after-tax dollars, but the benefits are received tax-free.

 

As business insurance issues are complex and convoluted, talk to your accountant before claiming a tax deduction for life, health or disability insurance premiums offered to your employees.

Not sure whether you can claim the life, health and/or disability insurance premiums you offer your employees, contact Cook and Company Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company use their experience, knowledge and expertise to help your business. Contact us for a complimentary consultation.

References:

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Should I Pay Myself a Salary or Dividends?

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If your business is set up as a corporation, you can choose to pay yourself a salary, receive dividends or a mix of both. It makes sense to choose the method that best accommodates your financial situation, but which practice is most beneficial for your business? There are many factors to consider and each payment method has advantages and disadvantages.

 

Salary: a fixed regular payment, made on a monthly or biweekly basis by an employer to an employee.

 

Advantages:

  • provides a legally recognizable personal income
  • allows you to contribute to retirement funds (CPP & RRSPs & TFSAs)
  • is tax-deductible for your corporation
  • fewer surprise taxes
  • easier to apply for bank loans and mortgages and often a better rate
  • entitles you to a Canada employment credit
  • can reduce exposure to corporate income tax

Disadvantages:

  • must set up a payroll account
  • pay twice into retirement funds, as the employer and the employee
  • a salary is 100% taxed, which could increase your tax burden
  • you won’t be able to carry back a business loss in future years when profits vary

 

Dividends: a sum of money paid regularly by a company to its shareholders out of its profits or reserves.

 

Advantages:

  • are taxed at a lower rate than a salary
  • can be declared at any time allowing optimization of your tax situation
  • save money, no CPP payments
  • simple process and little paperwork
  • don’t require payroll account
  • less chance of payroll penalties
  • do not require the shareholder to be an employee of the business

Disadvantages:

  • reduces the amount of CPP you are entitled to receive when you retire
  • you are not able to contribute to an RRSP
  • prevents you from claiming personal income tax deductions, such as childcare costs

 

Mix of both:

  • a business salary and some dividends are sometimes paid to ensure a corporation doesn’t earn over $500,000, the small business limit in Canada after which the tax rate increases
  • deciding to receive a salary and some dividends is based on income level, cash flow needs, projected annual earnings, the importance of personal cash for investments/tax deductions and/or the business owners age

As a business owner/manager, you can pay yourself a salary, dividends, or a mix of both. Whichever method you choose will depend on your personal and business needs and is best made with professional advice from your accountant.

Not sure whether a salary or dividends are best for your corporation, contact Cook and Company Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company use their experience and expertise to help your business. Contact us for a complimentary consultation.

References:

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What to expect if your Business is Audited by the Canadian Revenue Agency

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A tax audit is a detailed examination of a business’ books and records by the Canadian Revenue Agency (CRA). It’s conducted after you’ve received a notice of assessment and is intended to check that your records support your tax return. Audits are meant to ensure that the Canadian tax system is fair for all.

How does the CRA choose a file for audit?

From 2017 to 2019 an average of 5,900 audits of small businesses and 1,800 audits of medium-sized businesses were undertaken each year. These files are chosen for audit based on a risk assessment; factors such as frequency of errors on tax returns, indication of non-compliance with tax obligations and comparison to similar files. If your file is identified as high risk, a CRA officer will review information from a variety of sources to determine whether they should go forward with an audit.

What are the most common issues that prompt an audit?

For small and medium sized businesses the CRA may consider an audit if they discover:

  •   Multiple or repeated errors on your tax returns
  •   Major changes in income or expenses
  •   Repeated losses
  •   Expenses not in line with others in your industry
  •   Under-reported earnings
  •   Over large charitable donations
  •   Unsubstantiated home office deductions
  •   Discrepancies between GST returns and Tax returns
  •   Shareholder loans that should be considered income
  •   Missing information
  •   Audit of a related party
  •   A lifestyle incongruent with your declared income
  •   Real estate transactions
  •   Vehicle expenses
  •   Informant tips

What is the procedure for an audit?

A CRA auditor will contact you by mail or phone and set a date, time and location for the audit. A review may be held at your place of business, your representative’s/accountant’s office or at a CRA office. You’ll receive the agent’s contact information and be informed of the scope of the audit. You’ll be asked to provide supporting documents for the review. The auditor may make copies of your records and/or borrow some of your documents. The agent will discuss with you any questions that arise during the audit and address your concerns.

What documents are required for an audit?

The documents requested may include:

  • Business records (ledgers, journals, invoices, receipts, contracts, rental records, bank statements)
  • Personal records (bank statements, mortgage documents, credit card statements)
  • Records of other individuals related to the business (spouse, family members, corporations,    partnerships, trusts)
  • Records from your accountant that relate to the books, records and tax returns of your business

What happens when the audit is complete?

  • The auditor will prepare a schedule of proposed adjustments to your tax assessment including detailed calculations and explanations
  •   The agent will hear and discuss your explanations before closing the audit
  •   You’ll receive a letter explaining the results of the audit
  •   If changes are made, you’ll receive an amended notice of assessment

What do I do if I disagree with the results of the audit?

If you disagree with the reassessment, contact the auditor, explain your concerns and provide documents to support your position. If you are not able to resolve the disagreement, you have the right to appeal.

Filing taxes for a small or medium sized business is a complicated procedure. A CPA will ensure your tax return is complete and accurate, reduce the chances of your file being chosen for an audit and ensure you’re rewarded the deductions you’re entitled.

For all your tax needs contact Cook and Company Accountants. Whether you operate a sole proprietorship or a sizable corporation with multiple subsidiaries, Cook and Company uses their experience and expertise to make tax time a breeze. We will assist in dealing with the CRA in the event of an audit. Contact us for a complimentary consultation.

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