How Does Money Work?

When we analyze the Balance Sheet of the operations of our business, there is a section titled "Current Assets". This includes mundane items such as Cash on Hand and Petty Cash. There is a current balance of our chequing and savings accounts.

When we have come to terms with the fact that the chequing account balance on the Balance Sheet does not match the online bank statement balance, we can focus on whether our business is profitable or otherwise. We need to remember that gross profit and cold hard cash are two different items and found on different financial statements.

Therefore, in order to understand how the profit that is garnered from our business ends up on the Balance Sheet, the simple equation is Cash In Flow - Cash Out Flow = Cash. Cash In Flow consists of sales, deposits, retainers, loans, lines of credit. The healthiest would be sales and upfront customer deposits. Cash Out Flow epitomizes payroll, cost of goods sold, purchases, rent, advertising, meals, vehicle and travel expenses. The more detailed your chart of accounts, the more expenses will appear on the Income Statement.

For a discussion of your financial statements, for coaching, training and ongoing boutique bookkeeping, please contact me. #TrushaDesai.com

#businessplanning #financialstatements

December is not Year-end

For corporations, December may not necessarily be year-end. If you would like to sync your fiscal year and calendar year, in order that your personal and corporate tax preparation is facilitated, Canada Revenue Agency permits you to do so: they are just a phone call away.

If you have signed up for GST remittance, due to the fact that your annual gross income is greater than $30,000.00, Canada Revenue Agency will advise you whether your remittances need to be monthly, quarterly or annual. It is advisable to always stay on top of your tax filings and remittances, in order to avoid penalty and interest.

Trusha Desai Innovation Management Inc. specializes in GST reporting and year-end reconciliation in a slew of accounting software. I have ported corporations from Xero and QuickBooks Desktop to QuickBooks Online. As a Certified QuickBooks ProAdvisor, I ensure that your accounts are reconciled between QuickBooks Online and your original software. Please contact me #TrushaDesai.com

#fiscalyear #smallbusiness

Numbers Talk

If you were to ask what bookkeeping, budgets, cash flow management and tax have in common, the bottom line is numbers. What the numbers say on a balance sheet, are not what they inform you on an income statement, though there is at least one number that can be correlated on both financial statements.

With a degree in Math (First Class Honors, I should mildly add), I look at numbers with a degree of detail and precision while the business owner, professional or charitable organization takes in a panoramic photograph. The key is for my detail to mesh with your big picture, so that they are user-friendly.

This is tax season and I do Canadian personal tax as well as GST and PST filing and reports. Bookkeeping is the backbone of a business and without ongoing accounting and bookkeeping and without monthly bank and credit card reconciliation, the business, professional or charity may not know where they stand financially.

I currently have a special for QuickBooks Online. As a Certified QuickBooks ProAdvisor, I can port your accounting data from other software to QuickBooks Online where it is backed up. Bills and payments can have attachments for each transaction.

Therefore, please contact me for your bookkeeping, consulting, coaching and tax requirements. #TrushaDesai.com

#smallbusiness #taxes #financialstatements