Leading Independent Contractor Accounting In Toronto
As an independent contractor or consultant, you need to get started correctly, because the time has come to finally fulfill your dream of working for yourself! BBS’s professional independent contractor accounting services in Toronto, will get you using cloud accounting software to make life easier. You dream big and let us keep you on track.
Too often independent contractors or consultants dream too big and do not plan for the future with proper income statements and cash flow projections.
The best thing that you can do is put together a system that will last into the future. These efforts will bring exponential benefits to your business. Not only will you rest assured to understand the financial health of your company, but you will also be preparing for the future, For example, it might be easy to think that you should handle all the invoicing and financial management in your free time.
Advantages To Working As An Independent Contractor Or Consultant:
- Work on your own schedule, and take as much time off as you can afford
- Be a gun for hire, in your specific niche
- Much higher income based on an hourly rate that is better than payroll most of the time
- You choose when you work and when you do not, overtime is now paid!
- Using business expenses as a Tax Shield is a benefit that contractors and consultants benefit from
Bookkeeping Rules For Contractors Or Independent Consultants
As sole business owner you just need to live by some guidelines to make your life easier and audit-proof:
Ensure Business And Personal Expenses Are Separated
Money used from your personal account will be considered a shareholder loan and you can be paid back for it. However, it is important not to use your business account to pay for personal expenses.
Capture All Expenses:
Understand How The CRA Works
Understanding the laws and restrictions that impact your business activities, and ensuring you stay in compliance with these rules is important for your business. For example, your accountant will provide information about quarterly tax payments, tax break strategies, and more. You should tap into their expertise and make sure that you are keeping your nose clean with the CRA.
Use Cloud Accounting Software To Ensure Your Financial Documents Are Backed Up
Keep A Separate Account For Taxes
We love to encourage clients to keep about 15-20% aside to cover HST, and corporate taxes owed to CRA at year-end. This helps soften the blow of taxes owed. This type of liability is what most businesses get behind with and CRA will shut you down if you do not pay.
Try To Plan Your Business For Where You Want To Be In The Future
Having organized bookkeeping and accounting will help tax plan and understand your monthly operating costs. Once you can establish your costs, you can plan goals to attain the number of sales or clients to turn a profit and pay all of your expenses including CRA!
Work With CPA’s That Help You
Luckily we will offer unlimited support and can help with most questions you have. Lease or buy my car? How do I make payroll? What is a dividend?
Working with an accounting firm specializing in independent contractor accounting Toronto will make you’ll feel assured that your business will have predictable profitability into the future. With BBS Accounting CPA, you focus on your business while we focus on the bookkeeping.
Main Accounts Used In Small Business For Accounting And Bookkeeping:
- Assets, Bank, Accounts Receivables, Real Estate
- Liabilities, Lines of Credit, Loans, CRA Tax, Mortgages
- Revenues, Sales, Investment Income, Capital Gains
- Expenses, Payroll, Rent, Mortgage Interest, Utilities
- Equity, Accumulation of Net Income and can be used to Issue T5
The next step in the Accounting process is to set up the chart of accounts to organize income, expenses, assets, and liabilities. The chart of accounts is customized to the requirements of your specific small business.
BBS Accounting CPA’s #1 Tip for Independent Contractor Accounting Toronto is Keep all of your Receipts
We use Receipt Bank to digitize them for you. You can run your accounts Payable report to track. The types of receipts you should keep include:
- bank statements
- credit card statements
- proof of payment
Get Started Today With Professional Independent Contractor Accounting Toronto
At BBS Chartered Professional Accountants, we discuss your business tax and accounting needs to determine what package or hourly rate is right for your business.
Once we determine your business needs, we organize the information in an engagement letter for your review and approve
Next, we get started on the bookkeeping. Our bookkeeping contracts are renewed monthly, allowing you the flexibility to cancel any time.
We will send you a kick-off email with important information and what files to send us to set up the software and set up CRA representation.
Set a call with a BBS Accounting CPA specializing in independent contractor accounting Toronto to review all remaining questions or concerns.
We will set up Receipt Bank and Cloud Accounting software of your choice and send you login credentials.
Next, the team at BBS Accounting CPA will ask you for your bank and credit card statements each month. Please provide the required information and your books will be updated by the next month.
The accounting software will update your bank account via the secure connection every day and it ensures that we can reconcile your accounts.
Now month-end is completed, your expert accountant will accurately reconcile your bank and credit card accounts against general ledger balances and send you an email with a few uncategorized transaction queries.
Please respond with the missing details and you are done!