Faqs & Tips
Answers To The Questions
You Always Wanted To Ask
Welcome to the KineticBooks & Tax Solutions FAQ page – where all your burning bookkeeping questions meet their match!
We know bookkeeping and taxes can feel like a maze sometimes (or a puzzle with too many pieces!). So, whether you’re here to unravel the mysteries of GST/HST, figure out what expenses you can deduct, or simply learn more about how we work our magic, you’re in the right place.
Grab a coffee, get comfy, and let’s dive into the most common questions we get from business owners just like you! If you don’t see what you’re looking for, feel free to reach out. We’re here to make bookkeeping feel less like a chore and more like a breeze!
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General Bookkeeping
What is bookkeeping, and why is it important?
Bookkeeping involves recording financial transactions to keep track of income, expenses, assets, and liabilities. It’s essential for understanding your business’s financial health and making informed decisions.
How often should I update my bookkeeping records?
Ideally, records should be updated monthly to ensure accuracy, meet tax deadlines, and maintain an organized financial system.
What’s the difference between a sole proprietorship, partnership, and corporation in Canada records?
A sole proprietorship has a single owner, a partnership involves multiple owners, and a corporation is a separate legal entity. Each has unique tax and financial implications, which we can help clarify.
Do you offer cloud-based bookkeeping services?
Yes, we work with cloud accounting software like QuickBooks, ZohoBooks, Wave Accounting and Xero, giving you access to your financials anytime, anywhere.
Payroll Queries
Do I need to withhold taxes for my employees?
Yes, Canadian employers must withhold income tax, Canada Pension Plan (CPP), and Employment Insurance (EI) contributions. We can help you set up compliant payroll procedures.
How do I report employee income and deductions at year end?
You’ll need to issue T4 slips by the end of February each year for the period ending December 31st of the previous year. We can streamline this process for you.
How can I handle payroll remittances to the CRA?
Payroll remittances, including income tax, CPP, and EI contributions, should be submitted regularly. We can guide you through the remittance process to ensure compliance and avoid penalties.
How do I handle ROEs for terminated employees?
An ROE must be submitted within five calendar days after the last day of work, or the end of the pay period in which the employee’s interruption of earnings occurs, whichever comes first. Timely submission is crucial for the employee to access any EI benefits they may be entitled to.
What information do I need to include on the ROE?
The ROE should include the employee’s details (name, SIN, and contact information), reason for termination, employment period, total insurable earnings, and hours worked. It’s essential to provide accurate details to avoid delays in processing.
How do I submit an ROE?
There are two main ways to submit an ROE:
- Electronic ROE (ROE Web): You can submit ROEs online through the ROE Web on Service Canada’s website. It’s faster and more secure, and you can save your employee records for future submissions.
- Paper ROE: If you prefer a physical copy, you can order paper ROEs from Service Canada and fill them out manually. Once completed, you must give the original to the employee and send a copy to Service Canada.
What reason should I select for termination on the ROE?
Service Canada requires that you select the most accurate reason for termination from the available codes, such as Code E for quit, Code M for dismissal, or Code A for shortage of work. Selecting the right code is essential, as it impacts the employee’s eligibility for EI benefits.
Can I correct an ROE if I made a mistake?
Yes, if you need to correct an error, you can issue an amended ROE. Simply access the ROE Web (for electronic submissions) or request a new paper ROE and indicate that it’s an amended version. It’s important to correct any errors as soon as possible to prevent issues with the employee’s EI claim.
Sales Tax FAQs
Do I need to register for GST/HST?
If your business earns more than $30,000 in annual revenue, you must register for GST/HST with the CRA. We can assist with the registration process.
Our Bookkeeping Services Made Easy!
♦ Monthly or quarterly data entry
♦ Reconciling bank and credit card statements
♦ Issuing of client invoices
♦ Looking after your Accounts Receivable
♦ Accounts Payable – How much you we suppliers
♦ Filing government remittances
♦ Month-end review-making sure entries are correct
♦ Monthly preliminary financial reports
♦ Year-end report preparation for taxes or Accountant
The Items We Need
♦ Bank, credit card Statements (monthly or quarterly)
♦ Include sales & client invoices
♦ Vendor purchases & receipts
♦ Asset purchases & Cost of goods expenses
♦ Home office expenses
♦ Government tax letters & statements
♦ Copies of your payroll or paystubs
♦ Shareholder withdrawals or contributions
♦ Logins to online receipts
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What Is The Hourly Rate For a Bookkeeper?
We believe that bookkeepers shouldn’t be paid per hour, but a flat fee based on the scope of work required. When you pay someone hourly they aren’t motivated to be quick and efficient, this can lead to delays and being slapped with a huge bill you didn’t expect. At KineticBooks & Tax Solutions we believe in flat rates so you always know what you are paying.
Can We Do Payroll?
Absolutley! We are highly trained in the aspects of payroll and benefits. We can run your payroll bi-weekly or semi-monthly. We will also produce your T4s at the end of the year.
How Do Bookkeepers Benefit Small Business?
The greatest benefit of a bookkeeper is to keep your financials organized so that you know how your business is doing. They record bank transactions and post debits (costs) and credits (income), from which they produce financial statements and other reports for management. Bookkeepers are also great at keeping you on top of your government filings.
Accurate, Timely, & Comprehensive Business Solutions
Say goodbye to the stress of tax season, sleepless nights reconciling accounts, and the fear of financial inaccuracies. Our meticulous attention to detail ensures that your books are immaculate and compliant, giving you peace of mind and the confidence to make informed business decisions.
When you choose our bookkeeping service, you’re not just partnering with another company; you’re gaining a trusted ally invested in your success. We take pride in our transparent communication, commitment to deadlines, and personalized approach to address your unique needs.
Experience the freedom to focus on what truly matters – your business’s growth and prosperity. Make the wise choice today and join countless satisfied clients who have entrusted us with their financial success.
Contact us now to discover how our experienced, reliable bookkeeping service can transform your business and propel it to new heights. Don’t miss this opportunity – take action and witness the difference for yourself!
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