Ask A Bookkeeper: FAQs

Not that anyone is surprised, but I do get asked a lot of similar questions from business owners, and it shows the gaps in readily available information surrounding these topics.

I’ve compiled a list of some of the most common questions I’ve been asked in my 60-minute Ask a Bookkeeper Clarity Sessions, to help close the knowledge gap, and hopefully answer some of your questions in the process!

• Can I write off this call? 

Yes. Accounting, bookkeeping, and business consulting/coaching are considered a business expense. And you can write off the GST/HST as well.

• How do I deal with clients not paying? 

You can choose to use collections if you want. Otherwise, I typically encourage reaching out to the client to see why they aren’t paying and if you can rectify it. From there, I suggest implementing a deposit system as well as payment systems like Stripe, Helcim, or GoCardless.

• How do I deal with slow periods in my business? 

Slow periods are normal for business - and a little healthy. Idle hands make for innovation. That said, it doesn’t stop the internal nerves of what happens if business doesn’t pick back up. I suggest using a profit calculator to remind yourself what you need to sell at a minimum. There is also my cash flow spreadsheet that will help you learn where your bank balance will be in a few months. 

Xero also has its insights dashboard that you can use to improve your understanding. 

• How can I switch software? 

I use a software called MoveMyBooks that moves your financials into a new software. 

If you’re switching from paper to paperless systems, that’s a pretty easy switch - you just start taking photos of everything and shredding it once it’s uploaded. 

If you’re switching document filing systems - download everything from your old system and save it into something like google drive or dropbox. Then start using the new software. I recommend having a clean break between the two.

• How do I reconcile a bank account? 

This is a super common question - but all this really means is making sure you’re recording all incoming and outgoing money from each account your business has. You want to tie it to an ending balance so it’s important to use some type of software to help you automate this.

• How does (insert payment service) work?

Payment services are so helpful to get your invoices paid on time, if not early. Xero has done so much research into this and how to get small businesses paid. The payment services that I recommend are Stripe, Helcim, and GoCardless. I use all these myself and deploy them all the time with clients. You can also use Plooto, Rotessa, or even something like BenjiPays. 

If you hook one of these payment services up to Xero, when the invoice gets paid, it automatically will apply the payment, record any payment fees, and then make your bank reconciliation must faster with automations. 

And who doesn’t want to get paid automatically?

• Should I register for GST/HST? 

The short answer to this is yes. I recommend everyone voluntarily register early to avoid missing any deadlines. If you don’t register, you just need to keep an eye on your total worldwide sales until you hit $30,000 in yearly or quarterly revenue.

• How do I submit GST? 

You can submit your GST/HST either by NETFILE or through your CRA My Business Account. If you’re using NETFILE you’ll need an access code. From there, you’ll need your total sales, total GST/HST collected on sales, and total GST/HST Input Tax Credits (ITCs) paid on qualifying expenses. Then you just put those into the right lines and submit. Then verify. And don’t forget to pay it!!

• Are personal taxes and business taxes due at the same time? 

That depends if you’re incorporated or not. If you’re a sole proprietor, then yes, they are due at the same time. If you’re incorporated, there’s a good chance they are not due at the same time. 

All personal taxes have to be paid by April 30th (if you’re a sole proprietor, that includes you!).

Sole proprietors (and spouses) have until June 15th to file their taxes.

Incorporations are different depending on their year and status. 

• Have I overcomplicated this?

Yes. It’s quite easy to overcomplicate taxes. Let’s get on a call to simplify this so it’s not such a headache for you.

There you have it, those are some of the questions I get asked the most! 

If you have a specific question, book your Ask a Bookkeeper session with me!

Make sure to keep your eyes peeled in the coming months and check out our socials for more information and clarification for your business!