Top Five Things To Look For In A Bookkeeping Trainer
For small businesses, the importance of bookkeeping cannot be emphasized enough. As a small business owner, you manage the show. Many successful companies have plummeted, resulting in failure due to not maintaining proper financial records. Whether you’re a small business owner trying to grow your business or just a little shaky about tax season, bookkeeping is vital to keeping your business financially healthy.
By maintaining precise records, your business can get a summary of its health in the form of financial statements such as Balance Sheets, Income Statements, Cash Flow Statements, and more. The importance of bookkeeping goes beyond simply staying organized. Additionally, meticulously tracking all incoming and outgoing expenditures can help you strategize for the future. Sound bookkeeping practices also allow you to respond to potential CRA inquiries or audits effectively. Due to all these reasons, several small businesses now realize the importance of learning bookkeeping.
In case you’re looking to get trained in the subject of bookkeeping, here are five things to look for in your instructor.
1. Tax-deductible expense
Tax-deductible expenses are almost any ordinary, necessary, and reasonable expenses that help to earn business income. It can include office-in-home expenses, vehicle expenses, meals and entertainment at 50% tax-deductible, and in certain cases, 100% tax-deductible, and more. Your prospective instructor needs to have in-depth knowledge of the rules and regulations around these expenses so they can help you maximize tax-deductible expenses while maintaining compliance with CRA’s rules and regulations.
2. GST or HST
GST or HST rules and regulations can be complex. It’s important to know the difference between when you have to register versus when it is beneficial to register. It’s also important to know what rate to charge when you charge GST or HST, and correctly record GST or HST paid on international shipments into Canada. When learning bookkeeping, ensure your instructor is knowledgeable on GST and HST and helps you avoid costly errors.
3. Out-of-province sales
Depending on the province, PST/RST/QST may have to be charged if your sales into that province meet certain guidelines. Generally speaking, but not always, one example is sales that exceed $10,000/year. When selling to the United States (including e-commerce sales), you need to be aware of possible State and other sales taxes that you may have to register for and charge. One particular example is that in some states, if you have more than two-hundred sales per year, you may have to register for State Sales Tax, even if your price per item is $1.00. It’s vital that a top-quality instructor makes you aware of these items.
Ensure that your instructor makes you aware of some of the more important payroll rules and regulations that are often missed, including knowing the difference between an employee and a self-employed individual or an individual you label as a ‘manager’ versus a ‘true manager’ in the eyes of Revenue Canada.
When it comes to Stat Holidays (General Holidays/Public Holidays), the Federal Government of Canada recognizes twelve specific days; however, each Province and Territory is legislated to decide their own Stat Holidays, and while the Federal Government may recognize Boxing Day as a Public Holiday, the Province of Alberta, for instance, does not. Getting this wrong can be costly and may require you to recognize additional Stat Holidays in the future.
5. Financial Statements
The Financial Statements and records of a company list critical data on every aspect of a business’s financial activities. Ask your instructor the following questions: Can they produce Financial Statements in a format that is easy for the business owner to understand? Can they use Financial Statements to measure the results of past actions or plan and predict future activities and results? Does the instructor go beyond just dollars and look at other aspects of the business? Because whether it’s recognized or not, every action affects finances, including time spent making sales calls or commenting on Facebook ads to gain followers. TIME has an ROI. If the answer is a resounding, ‘yes,’ you are in very good hands.
If you’re looking for bookkeeping training with QuickBooks or other programs in Edmonton, Alberta, reach out to JB Training Services Inc. The company owner, Jacqueline Bernal, is a Certified Professional Bookkeeper, a QuickBooks Certified ProAdvisor, Xero Certified Advisor, and author of Bookkeeping & Beyond. She has a resume that includes over thirty years of training and experience in a combination of accounting, training, and outdoor adventures. JB Training Services Inc. serves clients all over Alberta and British Columbia.