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When you’re preparing your month-end financials, are you including an accrual for income taxes? Assuming your business is profitable, you will most likely have to pay income taxes at the end of the year. Instead of it being a surprise at that time, it’s best to accrue income tax expense on a monthly basis, which will allow for a more accurate liability section of your balance sheet. In Canada, if your business qualifies for the small business deduction, you will be paying 9

You’ve launched your business (congratulations!), and you know you need to keep on top of your bookkeeping. To save money in the early days, you decide to just do it yourself, even though you’ve never done it before. From what you hear, Quickbooks makes it sound easy for an entrepreneur to use their software. Great! I’m all set, you say. Fast forward to year-end, and your tax accountant can’t make heads or tails of your Quickbooks file due to miscategorized transactions — l

When does it make sense to evaluate cash flow on just the current bank balance? If you have an innate knowledge of how all cash moves in your business and when, then it might make sense. But even then, you could still make a crucial mistake due to incorrect assumptions, and suddenly you can’t make payroll or pay a key vendor on time. For everyone else, cash flow forecasting is your friend. Putting down in a spreadsheet, forecasting software, or even paper, your expected cas

Cheques are often thought to be an outdated method of payment, but for many small businesses, they are still a significant part of their everyday experience. As such, it’s important to know a few things about managing them. For one, most cheques must be deposited within six months of the date on the cheque. If you try to deposit the cheque after that time, it will not be honoured, as it has become “stale-dated”. This is done as an anti-fraud measure, and to encourage cheque

Many small- and medium-sized businesses don’t bother preparing budgets because they’re not legally or contractually required. They are content to run their company more on a daily basis. Fair enough. Owner-operators are busy enough with their day-to-day work, so they may not have budgeting top of mind. If you’re in this boat, I would urge you to reconsider for a couple reasons. One, a budget is like a contract that an organization makes with itself. It gives the company a s

Making your small business more profitable isn’t always about padding your bank account. There are several benefits of improving your bottom line: ✅ Autonomy: Less dependence on other people or circumstances. ✅ Security: Insurance against lean times. ✅ Hire more people and/or pay them more: Frees up time for the owner and helps retain good talent. ✅ Credibility and leverage: Banks and lenders are more willing to work with you and provide more generous terms. ✅ Reinvestme