Bookkeeping and Accounting

Commonly Asked Bookkeeping Questions & Answers

Commonly Asked Bookkeeping Questions & Answers

There’s no substitute for accurate bookkeeping when you’re running a business. Whether you need payroll services in Ottawa or assistance in getting your documents ready for tax season, TandemBooks Inc. can help you stay up to date with your financial records and to comply with government deadlines and regulations. Here are some common questions about bookkeeping and businesses.

Can a bookkeeper do my taxes?

Bookkeepers can perform a lot of tasks, such as reconciliation accounting, HST reporting, and day-to-day accounting entry, but we recommend that you have your taxes done by a certified professional accountant (CPA). Our bookkeepers can assist in the preparation of your draft financial statements for income tax purposes.

Do I need to pay HST on my business sales?

The Harmonized Sales Tax (HST) is the provincial portion of the value-added tax by the federal government. In general, once you exceed the $30,000 threshold in sales in a single calendar quarter, you need to register an HST number with the government and will need to start filing and paying HST. However, you should note that different types of businesses and residential status do have different requirements.

How do I know how much I owe in HST?

  • Add up all GST/HST your business earned within the relevant accounting period.
  • Calculate how much GST/HST your business paid on purchases.
  • Subtract the total figure of what you earned versus what you paid.
  • The final number is your company’s net tax, which should be submitted to the CRA monthly, quarterly or yearly, depending on your accounting period.

When do I need to pay payroll tax?

Employers who pay salaries, wages, bonuses, vacation pay, or tips to their employers must report and pay payroll tax. Some taxable benefits must also be reported, such as an automobile or other allowances. If you typically report payroll, but then have a season without employees, you must still file a report. TandemBooks Inc. offers comprehensive and professional bookkeeping services in Ottawa to help you stay on top of all reporting and compliance requirements.

I just hired my first employee, should I use payroll services?

Even if you only have one employee, you can obtain payroll services in order for them to help you with all the payroll requirements (i.e. payroll deductions, CPP, EI, preparation of T4s). It’s also important to have someone help you keep up with ongoing payroll regulations that can impact both employers and employees. TandemBooks Inc. provides full-service payroll processing for businesses of all sizes.

Why do I need to reconcile my bank accounts?

The process of reconciling your bank accounts is simply to compare your internal financial records versus the records provided to you by your bank. This is important because it ensures that you can find any unusual transactions caused by fraud or accounting errors. If your internal data doesn’t match the bank’s report, you should be able to account for any discrepancies. Regular reconciliation helps you identify any problems quickly.

What’s the difference between accounts payable and accounts receivable?

Accounts payable is the money you owe to your vendors. Keeping up with accounts payable helps your business manage its bills. On the balance sheet, accounts payable are listed as liabilities. Accounts receivable is the money you are owed. On the balance sheet, you’ll find accounts receivables listed as assets. Tracking these two types of payments help you manage cash flow and run a successful business.

A successful business runs on its finances. Getting your financial picture organized helps your business take the right steps to meet your goals. Contact TandemBooks Inc. for business startup consulting in Ottawa and bookkeeping services that keep your business moving forward.