Numetrica Cloud Accounting

Numetrica City
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Talking about small business accounting , accounting apps, business management, profits, HST, personal and corporate tax, advantages and disadvantages. The how of business so you can run your business faster, smarter, better and with more profits. Working on your business, not in your your business. What is your major challenge in running your business? let me know and I can provide you my suggestion. moe@numetricacity.ca Check out our website at https://www.numetricacity.ca

  1. 03/03/2024

    Start up accounting

    Startups face numerous challenges, particularly in the realm of accounting. Accounting lays the groundwork for all other business operations and can be complex, but mastering it is crucial for success. Here's a condensed guide on how startups can manage their accounting needs: **1. Importance of Accounting** - Accounting is vital for understanding financial standing, managing expenses, sharing data with stakeholders, analyzing competitors, and identifying investment opportunities. **2. Basic Financial Records** - Essential financial records include bills, receipts, invoices, bank statements, credit card statements, financial statements, and tax forms. **3. Basics of Accounting for Startups** - Analyze Business Transactions: Track all transactions and categorize them for clarity. - Keep All Invoices: Maintain a record of all invoices issued and received. - Reconcile Bank Statements: Compare bank and cash balances to catch any discrepancies. - Write Journal Entries: Use a journal to record daily purchases and sales. - Post to Ledger Accounts: Classify entries under appropriate ledger accounts. - Close Temporary Accounts: Zero out temporary accounts at the end of accounting cycles. - Track Taxes: Consistently monitor taxes throughout the year. **4. Develop a Bookkeeping System** - DIY: Manage accounting yourself with software or Excel. - Outsource: Hire a part-time or freelance accountant. - Hire an Accountant: Employ a full-time accountant or team for a large operation. **5. Startup Accounting Software** - Accounting software like FreshBooks, QuickBooks Online, and Xero can streamline processes and facilitate analysis. **6. Identify Your Accounting Method** - Choose between Cash and Accrual methods depending on your preference. Accounting is a cornerstone of business operations and should not be neglected. By carefully managing accounting needs from the outset, startups can set themselves up for future success. For more information numetricacity.ca

    3 min

  2. 02/25/2024

    How to Avoid Capital Gains Tax When Moving To A Rental Property

    Converting Your Personal Residence into an Income-Generating Property: A Step-by-Step Guide with Subsection 45(2) of the Income Tax Act (ITA) Converting your personal residence into an income-generating property can be a strategic move for financial stability or for maximizing the value of your assets. However, this transition comes with significant tax implications, especially in Canada. In this blog, we will explore the process of converting a personal residence into an income-producing property while emphasizing the importance of Subsection 45(2) of the Income Tax Act (ITA). Understanding Subsection 45(2) of the ITA Subsection 45(2) of the ITA is a critical provision for those considering converting their personal residence into an income-producing property. It addresses the capital gains tax that arises from such a conversion. Capital gains tax is usually incurred when a property's use changes from personal to income-producing. Review the Applicable Tax Laws Understanding the relevant tax laws, including Subsection 45(2) of the ITA, is crucial before proceeding with the conversion. Given the complexity of tax laws, consulting with a tax professional or lawyer is recommended. Notify the Canada Revenue Agency (CRA) Inform the CRA about the change in use of your property. This can usually be done by reporting the conversion on your annual income tax return. Accurate reporting is essential to ensure compliance with tax laws. Report Income Any income generated by the property, such as rental income, must be reported on your tax return. Failure to report this income could result in penalties and interest. Calculate the Capital Gain When converting your personal residence to an income property, a capital gain may be triggered for tax purposes. This gain is calculated as the difference between the fair market value of the property at the time of conversion and the adjusted cost base (ACB) of the property. Determine Eligibility for Principal Residence Exemption (PRE) If the property was your principal residence before the conversion, you may be eligible to claim the principal residence exemption (PRE). This exemption can help reduce or eliminate the capital gain for tax purposes. Consider Subsection 45(2) Election If you don't qualify for the PRE or choose not to claim it, you can elect under Subsection 45(2) of the ITA to defer the capital gain. This means you postpone paying tax on the gain until you sell the property. Maintain Detailed Records It is crucial to keep accurate records of all transactions related to the property. This includes purchase documents, receipts for improvements and repairs, rental agreements, and any correspondence with the CRA. These records will be essential for calculating tax liability and in case of an audit. Seek Professional Advice Given the complexity of tax laws, it's wise to consult with a tax professional or lawyer. They can ensure that you understand the tax implications of converting your property and help you remain compliant with tax laws. Converting your personal residence into an income-producing property is a significant decision that requires careful consideration of various factors, including tax implications. By understanding Subsection 45(2) of the ITA, reporting income accurately, calculating capital gains, and seeking professional advice when needed, you can navigate this transition successfully while ensuring compliance with tax laws. For more info contact https://www.numetricacity.ca/

    3 min

  3. 02/21/2024

    How To Implement The Profit First System for Dentists

    Profit First is a financial management system designed to help business owners, including dentists, prioritize profit by making it a priority and not an afterthought in their operations. In contrast to traditional accounting where profit is typically calculated after expenses, Profit First suggests setting aside profit first and then managing expenses with what's left. To implement Profit First, you need to: Read the Book: The first step is to read "Profit First" by Mike Michalowicz to understand the concept and the system. Determine Percentages: After understanding the system, determine your target allocation percentages (TAPS) for your business. These percentages will depend on factors like your business size, profitability, and industry benchmarks. Open Bank Accounts: You need to open several bank accounts for different purposes (income, profit, owner's pay, taxes, and operating expenses). The idea is to allocate money into these accounts according to your predetermined percentages. Track Your Finances: Use a spreadsheet or accounting software to track your finances regularly. This helps you understand where your money is going and whether you're meeting your profit goals. Adjust the System to Your Needs: The Profit First system is adaptable. You can adjust it to fit your business needs and preferences. Implementing Profit First can help you run a more financially stable and profitable business by making profit a priority. It ensures that you're not only covering expenses but also setting aside money for yourself and your business's future growth.

    2 min

  4. 02/21/2024

    How to master cash flow management

    Cash flow management is crucial for small business success. Tips include: Optimize cash flow by setting up interest-bearing accounts for your business. Utilize accounting software to track your cash flow and make informed decisions. Stagger bill payments to avoid depleting your cash reserves and maximize interest earned. Avoid customer payment delays by using online invoicing tools and clear payment terms. Schedule payments to occur as close to the due date as possible to retain cash for longer. Consider cash flow reduction strategies, such as buying used equipment or bartering for goods and services. Streamline payroll management by using separate accounts and adjusting pay schedules to save on administrative costs.

    2 min

  5. 02/17/2024

    Business Transformation

    Business transformation encompasses a range of objectives, from boosting efficiency and profitability to enhancing financial management and team productivity. It's about envisioning a more successful and effective business model, one that potentially saves money and optimizes costs. Creating a system to grow and manage your business is key to realizing your vision of business transformation. This involves systemizing functions to streamline operations and free up manpower for business growth. Having a clear picture of your business goals is vital, whether that's acquiring more clients, improving reporting, or simply being more in control of your business. While financial gains may be a primary motivator, larger factors like providing for your family, contributing to your community, or achieving personal well-being can also drive your transformation journey. Automation tools and strategies can be invaluable in this process. Some notable tools include Quickbooks Online, Wagepoint, Tsheets, Receipt Bank, Helm, and Invoice Sherpa. Routine analysis of reports generated by these tools is crucial for tracking progress and identifying areas for improvement. While it may initially feel daunting, persistence in implementing tools and strategies will yield results over time. Each step forward, no matter how small, is a success in the journey toward business mastery. Every business has the potential to positively impact its owners' lives, whether professionally or personally. As Tony Robbins aptly puts it, "If you do what you've always done, you'll get what you've always gotten." By committing to a personal growth plan and making changes, one can achieve the desired results and transform their business for the better. Numetricacity.ca

    2 min

  6. 02/17/2024

    If cash is the king, how do you manage the cashflow?

    Cash flow management is an essential aspect of business that often requires a well-thought-out strategy to ensure a company remains in the black, rather than incurring debts that could lead to its downfall. Businesses can fail when they overlook this concept, with 80% of such cases being attributed to this oversight. It's crucial that sales exceed expenses and that clients are chosen wisely to guarantee collectibility. Professionals like lawyers may request retainers to ensure timely payments. Advancements in technology have facilitated cash flow management, and implementing certain strategies can help keep a business profitable: 1. **Track Time and Value:** Measure the time spent on client work against its value, identifying economically fruitful projects and delegating less profitable tasks. For example, tasks like sending emails can be delegated to staff members at a lower cost. 2. **Automate Invoicing:** Utilize software like Quickbooks Online or Invoice Sherpa for invoicing to streamline the process. 3. **Prioritize Payment Collection:** If feasible, collect credit card information in advance and keep it on file for faster payments. 4. **Use Cash Flow Applications:** Applications like Helm can be used to monitor cash flow in real-time. 5. **Budgeting Tools:** Applications such as Budgeto can provide insight into cash needs and help with forecasting. 6. **Offer Additional Services:** Provide complementary services to increase revenue. By leveraging technology and adopting these strategies, a business can enhance its cash flow management and maintain a healthy financial standing. Numetricacity.ca

    3 min

  7. 02/15/2024

    What is Cloud Accounting?

    Cloud accounting software works exactly just like the traditional accounting software, only the cloud accounting software just like QuickBooks online is hosted on remote servers of QBO Transaction data is sent into “the cloud,” where it is processed and returned to the user.  All application functions are performed off-site, not on the user’s desktop. Which enables you to use the platform from any devise as long as you can log in to QBO. In cloud accounting, users access software applications remotely through the Internet or other network via a cloud application service provider. Using cloud accounting software frees the business from having to install, maintain and upgrade software on individual desktop computers. Cloud accounting solutions also allow employees in other departments, remote or branch offices to access the same data and the same version of the software. Numetricacity.ca

    3 min

  8. 02/15/2024

    How is Business, Really How is The Business?

    How is Business, Really How is The Business?   Maybe it was an idea that struck you out of nowhere, or perhaps your small business’ inspiration was an idea and plan that was years in the making. Whichever it was, your small business is your baby, and running it successfully is something that is of paramount importance to you. With that being said, there are so many aspects to successfully running your small business that it can make even an experienced entrepreneur’s head spin.    It is vital that a business owner has an intimate knowledge and relationship of the inner workings of their company, from local and global supply and demand to marketing strategies, and perhaps most importantly, the financial blueprint for their small business.    Today, we want to share with you some focus areas that will ensure that you are leading your business to growth and success. By honing in on these tips and growing your knowledge in these areas, as well as knowing when to reach outside your office walls for assistance, you will be well on your way to small business achievement. Numetricacity.ca

    4 min
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About

Talking about small business accounting , accounting apps, business management, profits, HST, personal and corporate tax, advantages and disadvantages. The how of business so you can run your business faster, smarter, better and with more profits. Working on your business, not in your your business. What is your major challenge in running your business? let me know and I can provide you my suggestion. moe@numetricacity.ca Check out our website at https://www.numetricacity.ca

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  • Creator
    Numetrica City
  • Years Active
    2021 - 2024
  • Episodes
    39
  • Rating
    Clean
  • Copyright
    © Numetrica City
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    Numetrica Cloud Accounting