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Why every Business Owner needs an Accountant that understands Critical Thinking |

Rebecca C Penner

 

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  Contact Rebecca C Penner https://rcpenner.com/contact 

Critical thinking is a skill that is important for all professionals, but especially accountants. Accountants need to be able to think critically to understand financial statements, identify potential red flags, and make informed recommendations. Critical thinking skills can be developed through practice and by using specific techniques. In this blog post, we will discuss some of the best techniques for improving your critical thinking skills as an accountant.

 

Why are critical thinking skills important in accounting?

Once you have learned how to develop critical thinking skills you will be better able to add value to data, interpret trends within the business, understand how people and performance intersect and take on a broader commercial outlook that benefits the business.

In the accounting profession, critical thinking skills are important because they enable accountants to:

 

1. Analyze data and identify key issues:

 

There are many ways to analyze data, but some key issues to consider when analyzing data include: - Identifying outliers: Outliers can be indicative of errors in data collection or processing and can skew results if not dealt with appropriately. - Checking for normality: Many statistical tests assume that data is normally distributed.

 

2. Develop creative solutions to problems.

 

When developing creative solutions to problems, it is important to think outside the box and come up with ideas that are not immediately obvious.- think critically: When thinking critically, it is important to consider all sides of an issue and to be open to new ideas.- communicate effectively: When communicating effectively, it is important to be clear and concise to ensure that your message is understood.- work collaboratively: When working collaboratively, it is important to be able to compromise and respect the ideas of others.- be flexible: When being flexible, it is important to be willing to change your plans if necessary and to adapt to new situations.- be organized: When being organized, it is important to keep track of all the information and resources you will need and to have a plan for how you will use them.

 

3. Think strategically about business decisions:

 

When thinking strategically about business decisions, it is important to consider the long-term implications of those decisions.- be able to work well under pressure: When working under pressure, it is important to be able to stay calm and focused, and to be able to prioritize tasks.- have strong problem-solving skills: When solving problems, it is important to be able to think creatively and to have strong analytical skills.- be able to work well in a team: When working in a team, it is important to be able to communicate effectively and to be able to work collaboratively towards a common goal.- have strong leadership skills: When leading a team, it is important to be able to inspire and motivate others, and to be able to make decisions that are in the best interests of the team.

 

4. Effectively communicate their ideas to others.

 

When communicating their ideas to others, individuals need to be clear and concise to ensure that their message is understood. It is also important for individuals to be able to listen to the ideas of others and to be open to new suggestions. - work together in a team. When working in a team, individuals need to be able to communicate effectively and be willing to compromise to achieve a common goal - have strong problem-solving skills. When solving problems, individuals need to be able to think creatively and have strong analytical skills. When working with data, it is important to be aware of potential issues that could skew results, such as data that is not normally distributed. It is also important to develop creative solutions to problems and to think critically about business decisions. When working in a team, individuals need to be able to communicate effectively and have strong problem-solving skills. Being adaptable is also key, as is being organized and having a clear understanding of roles and responsibilities. Strong leadership skills are also essential for those in charge of leading a team.

 

Read this great article if you are thinking about becoming an Accountant:

https://www.oxbridgeacademy.edu.za/blog/3-reasons-even-accountants-need-soft-skills/#:~:text=Critical%20thinking%20is%20a%20crucial,the%20story%20behind%20the%20numbers.

 

Thanks for reading, and we hope this information helps you.

Thank you for taking the time read my blog.

Sincerely,

Rebecca C Penner CPA, CGA

 

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What Does it Mean When the CRA audits you?

| Rebecca C Penner 

 

Find out what an audit by the Canada Revenue Agency entails and learn how to best prepare for and respond to an audit should one be initiated.

 

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Contact Rebecca C Penner https://rcpenner.com/contact

 

 

If You Are Selected for a Tax Audit

 

If you are selected for a tax audit by the Canada Revenue Agency (CRA), it means that the CRA will be taking a closer look at your tax return to make sure that you have reported your income and expenses accurately. The CRA may also request additional documentation to support your claims. While it can be daunting to receive an audit notice, it is important to remember that an audit does not necessarily mean that you have done anything wrong. In most cases, audits are simply a routine part of the CRA's job to ensure that everyone is complying with Canada's tax laws. However, if the CRA discovers that you have underreported your income or claimed ineligible expenses, you may be required to pay additional taxes and penalties. If you are facing a CRA audit, it is best to seek professional help to ensure that you are complying with all of the relevant tax laws and regulations.

Click the link to read about CRA audits https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/changes-your-business/business-audits.html

 

When the Canada Revenue Agency (CRA) conducts an audit, it reviews the books and records of a taxpayer to ensure that they have been reported correctly. The CRA can ask for a variety of documents, including past tax returns, bank statements, invoices, receipts, and cancelled cheques. If you are under audit, it is important to be prepared and to cooperate fully with the CRA. Rebecca C Penner can help you with this daunting task. To help put your mind at ease contact Rebecca today! https://rcpenner.com/contact

 

Why You May Be Chosen for Audit

 

The CRA may choose to conduct an audit based on the frequency or likelihood of errors in tax returns, indications that you're non-compliant with paying taxes owed, and information not consistent with other similar files and/or investigations.

If you have any questions or concerns about an audit, please do not hesitate to contact Rebecca C Penner at https://rcpenner.com/contact

Rebecca will be more than happy to help guide you through the process and answer any questions you may have. Remember, it is always better to be safe than sorry when it comes to your taxes. Thanks for reading!

 

Thank you for taking the time to read my article. Don’t miss out on future blogs. Sign up to get them directly to your email inbox hot off the press.

Sincerely

Rebecca C Penner CPA, CGA

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Does a Small Business need to Incorporate | Rebecca C Penner

 

Incorporating your small business can be beneficial, but it also has its drawbacks. Here are the advantages and disadvantages of incorporating for small businesses.

 

There is a lot of confusion around when a small business needs to incorporate. Many people believe that if your business is making a profit, then you must incorporate it in order to protect yourself and your assets. However, this isn't always the case. In this blog post, we will explore when a small business needs to incorporate and what the benefits are of doing so. We will also provide tips for choosing the right corporate structure for your business. So, whether you are just starting out or have been running your business for years, read on for some valuable information!

There are many benefits to incorporating your small business, including:

- Increased credibility: When you incorporate your business, it shows that you are serious about your business and are committed to its success. This can help you attract more customers and clients, as well as partners and investors.

- Access to more capital: Incorporating your business can make it easier to secure loans and investment capital. This is because banks and investors view incorporated businesses as being more stable and less risky than unincorporated businesses.

- Tax advantages: The ability to use the small business deduction and the possibility of paying tax at a lower rate.

Choosing the Right Corporate Structure

Choosing the right corporate structure for your small business is an important decision. There are several different types of business structures, including sole proprietorships, partnerships, and corporations. Each type has its own advantages and disadvantages, so it's important to choose the one that best suits your needs. You can speak with a lawyer or accountant to get more information about the different types of business structures and to help you choose the right one for your business.

If you're thinking about incorporating your small business, we hope this blog post has given you some helpful information. Incorporating can provide many benefits, but it's important to make sure that it's the right decision for your business. We wish you the best of luck in your business endeavours!

If you need help with your small business, please don’t hesitate to contact me. We can set up a FREE consultation to discuss your specific needs and then come up with an action plan.

Thank you for taking the time to read my article.

Don’t miss out on future blogs. Sign up to get them directly to your email inbox hot off the press.

Sincerely

Rebecca C Penner CPA, CGA

 

 

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5 Purchases You Didn't Know Were Tax Deductible 

Rebecca C Penner Accountant

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 Contact Rebecca today for a free consultation:  https://rcpenner.com/contact

 

Did you know that there are several purchases you can make throughout the year that are tax deductible? Here's a list of five common ones!

 

As a Canadian taxpayer, you may be eligible to deduct some of your expenses on your income tax return. This includes certain purchases that you might not have expected to be tax deductible.

 

Here are five items you may be able to claim:

 

1. Vehicle Expenses – You may be able to deduct certain vehicle-related expenses if you use your vehicle for business purposes. This could include things like fuel, maintenance, and insurance. *Please note: this deduction is in very specific situations where your employer requires you to do it and provide a T2200.

 

2. Union or Membership Dues – You may be able to deduct your dues on your tax return. Your accountant will require receipts.

 

3. Child Care Costs – If you have children, you may be able to deduct childcare expenses on your taxes.

 

4. Home Office Expenses – If you work from home and use part of your home for business purposes, you can deduct certain expenses on your taxes. This could include things like a portion of your mortgage or rent, electricity, and heating costs. *Please note: this deduction is in very specific situations where your employer requires you to do it and provide a T2200.

 

5. Moving Expenses – This deduction is for people who are required to move more than 40 km’s for work purposes. Click the link to see other deductions that may apply to you https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html

 

If you're wondering what other types of expenses you can claim on your tax return, don't worry! We've got you covered.

Rebecca C. Penner is a Chartered Professional Accountant with over 15 years of experience in income tax and accounting.

Contact Rebecca today for a free consultation to learn more about the deductions that may be available to you  https://rcpenner.com/contact

Thanks for reading, and we hope this information helps you save money on your taxes next year!

Thank you for taking the time read my blog.

Sincerely,

Rebecca C Penner CPA, CGA

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How Outsourcing CFO Services Can Help Your Business

  

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If you’re like most business owners, you are always looking for ways to save money and improve your bottom line. One way to do this is by outsourcing your CFO services. By doing so, you can get the benefit of having a financial expert on staff without paying the high salary and benefits that come with hiring a full-time CFO. In this blog post, we will discuss the benefits of outsourcing CFO services and how it can help your business grow!

 

What is an Outsourced CFO?

An outsourced CFO is an accountant or finance leader who provides top-tier finance, business, accounting, and operational guidance for your business on a part-time or full-time basis. You can use an outsourced CFO to be your interim for the duration of a project, during a busy season, or when you're experiencing high growth.

 

Outsourcing a CFO position can also help you with bookkeeping services budgeting, financial forecasting, raising capital, and more. Outsourced CFOs are experienced in working with businesses of all sizes across various industries. At Rebecca C Penner we offer great bookkeeping services, click the link:https://rcpenner.com/bookkeeping

If you're looking for expert advice and guidance to take your business to the next level, consider outsourcing your CFO.

 

Benefits of outsourcing CFO Services

 

There are many benefits to outsourcing your CFO services. Perhaps the most obvious benefit is that it can save you a lot of money. A full-time CFO can cost upwards of $200,000 per year, including salary and benefits. When you outsource your CFO services, you only have to pay for the services you need, when you need them. This can save your business a lot of money, which can be reinvested back into the business or used to improve your bottom line.

A great article from Globe News Wire, if you are curious to find out why outsourcing your CFO position might be for you: https://www.globenewswire.com/en/news-release/2022/06/29/2471535/0/en/Scale-Up-a-Small-Business-With-a-World-Class-Outsourced-Virtual-CFO.html

 

Outsourcing your CFO services allows you access to a wide range of talent and experience. When you hire an in-house CFO, you are limited to the skills and experience of that one individual.

 

If you’re interested in learning more about the benefits of outsourcing your CFO services, please don’t hesitate to contact Rebecca Penner at:https://rcpenner.com/contact   I would be happy to answer any questions you have and provide more information about how the services we provide.

Thank you for taking the time read my blog.

Sincerely,

Rebecca C Penner CPA, CGA

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The Top 7 Benefits of Using Accounting Services

 

There are many benefits of using accounting services. Some of the top reasons include getting accurate and timely financial information, gaining an objective perspective on your business, improving decision-making ability, preparing for tax time, and more!

In this blog post, we will discuss each of these benefits in more detail. If you are considering hiring an accountant for your business, read on to learn more about why it is a wise decision!  https://rcpenner.com/contact

 

Rebecca C Penner

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 If you're a business owner, you know that keeping track of your finances is essential. But doing everything yourself can be time-consuming and overwhelming. That's where accounting services can help. Here are seven benefits of using an accountant:

 

1. Accurate and timely financial information:

An accountant can make sure your financial records are accurate and up to date. This is important for making sound business decisions and preparing your taxes.

2. Gaining an Objective Perspective:

An accountant can provide an unbiased view of your business finances. They can offer insights and recommendations to help you improve your bottom line.

3. Improving Decision-Making Ability:

Having accurate financial information is critical for making informed business decisions. An accountant can help you understand your financial situation and make smart choices about where to allocate your resources.

4. Preparing for Tax Time:

Tax season can be stressful, but an accountant can take care of all the details for you. They can ensure you’re taking advantage of all the deductions and credits you’re entitled to and help you avoid any penalties.

5. Saving Time:

An accountant can save you a lot of time by taking care of all your bookkeeping and financial reporting. If the accountant offers the service of bookkeeping. This frees up your time to focus on other aspects of running your business.

6. Peace of Mind:

Knowing your finances are in good hands can give you peace of mind. An accountant can help you avoid financial problems down the road and ensure your business is on solid footing.

7. Reducing Stress:

Dealing with money can be stressful, but an accountant can take some of the burdens off your shoulders. They can handle all the financial details so you can focus on running your company.

 

If you are looking for help with your finances, consider hiring an accountant. We can provide many benefits to your business. Don’t let your bookkeeping and accounting get you down, give me a call today and we can discuss how to move forward and bring you peace of mind. https://rcpenner.com/contact

 

Thank you for taking the time to read my article.

Don’t miss out on future blogs. Sign up to get them directly to your email inbox hot off the press.

Sincerely

Rebecca C Penner CPA, CGA

https://rcpenner.com/contact

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 Project Accounting: What is it and Does Your Company Need It

Project accounting is a type of managerial accounting. It is a system that helps businesses track, analyze, and report financial results and implications. By using project accounting, companies can ensure that they are making the most efficient use of their resources and that all aspects of each project are accounted for. In this blog post, we will discuss what project accounting is and how it can benefit businesses. Let's get started!

 

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Which Type of Businesses use Project Accounting

While project accounting was traditionally used for large construction, engineering, and government projects, it has now expanded into several other sectors including IT, non-profit organizations, and marketing. Project accounting is a specialized form of accounting that keeps track of the financial progress of projects.

 

What Do Project Accountants Do?

1.Monitor the progress of projects

2. Look into variances

3. Approve outgoing inclusive of expenses.

4. Ensuring that project billings are issued to clients and payments collected.

 

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Could Your Business Use a Project Accountant?

Project accounting is most commonly used in businesses that work based on contracts for unique projects, such as construction companies or advertising firms. Project accounting allows businesses to track revenue and expenses by project, in order to better understand the financial outcome of each project and make more informed decisions about where to allocate resources in the future.

 

Are you a construction company that is looking for a better way to track job costs? Or an agency that wants to improve the transparency of project billing? If so, then project accounting is definitely for you. Contact me today if you need any advice on where you need to go and what you should be doing to cost your projects properly.

 

As always thank you for taking the time to read my blog.

If you have any questions, please don’t hesitate to reach out.

Sincerely,

Rebecca C Penner CPA, CGA

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Bookkeeping: Month End and Year End Preparation

Every business owner knows that preparing month end and year end financials is important, but not everyone knows how to do it themselves. That's where bookkeeping comes in.

 

If you don’t have a bookkeeper, the below tasks can seem daunting and time consuming. It doesn’t have to be, you could hire out the service to a bookkeeping company like mine. This way you know your books will be taken care of and you will have one less thing to worry about.

 

Below are a few key items that need your attention each and every month. If you don’t have the time or you just don’t know where to start, please reach out. Leaving this very important part of your business until later really won’t cut it.

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Here are a few key tips to help you get organized

 

Month End Preparations:

 

• Start by reconciling your bank and credit card statements.

• Review your income and expenses for the month

• Compare your actual results to your budget

• Make any necessary adjustments

• Prepare your financial statements

 

Year End Preparations

• Record all Transactions

• Make sure your bank reconciliations are complete.

• Review your Financial Statements

• Check your AR and Invoices

• Check your AP

• Perform an inventory count

Screen Shot 2022 06 08 at 2.11.23 PMFor Bookkeeping Services Contact us athttps://rcpenner.com/contact

 

Bookkeeping can be a daunting task, but our team of experts are here to help you every step of the way. We'll make sure your books are in order so you can focus on what you're good at - running your business.

 

Not only will we take care of all your bookkeeping needs, but we'll also provide you with insightful monthly and yearly reports so you can track your progress and see where your business is headed. Let us help you take control of your finances and achieve success.

 

Contact us today at https://rcpenner.com/contact , and will have you set up and running in no time.

 

As always thank you for taking the time to read my blog.

 

I truly hope it has helped.

 

Sincerely,

Rebecca C Penner CPA, CGA 

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4 Ways to Improve Your Cashflow Management

 

Cash flow is the lifeblood of any business, large or small. Without a steady inflow of cash, it can be difficult to meet payroll, pay suppliers, and keep the lights on. That's why effective cash flow management is so important. Cash flow can be managed in a number of ways, but one of the most effective is through careful accounting. By tracking inflows and outflows of cash, businesses can get a better handle on their overall financial health. This information can then be used to make informed decisions about where to allocate resources. With careful planning and execution, businesses can ensure that they always have the cash on hand to meet their obligations.

 

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 Contact Rebecca at https://rcpenner.com/contact

Managing your cash flow can be difficult, but it's crucial to keep track of your income and expenses so you can identify trends, especially when your business depends on it. If you're having trouble staying on top of your spending, make a budget and stick to it. Or contact a professional like me. As an experienced cashflow management professional, I am able to help find leaks and show you how to create a way to manage your day-to-day finances properly.

 

The 4 ways we can Improve your Cashflow Management are as follows:

 

1. Understand your cash flow - track your income and expenses so you can identify trends.

2. Make a budget and stick to it - this will help you stay on top of your spending

3. *Delay payments where possible - if you can, pay bills and other expenses in installments rather than all at once. *note that only apply this method if you won’t be charged interest, or if you are that it is not a high interest rate. (Do not delay payments for credit cards).

4. Invest in a good, reputable Accountant to help you manage your finances more effectively.

 

Budgeting Tips

 

 

Improving your cashflow management can help you keep your business running smoothly. In order to be successful, business owners need to have a firm understanding of their cashflow. This includes knowing when money is coming in and going out, as well as how much money they have on hand. Improving your cashflow management can help you stay in control of your finances and make sure your company is always operating optimally.

 

And lastly, don't be afraid to ask for help when needed - there's no shame in admitting that you don't know how to do something and seeking guidance from someone who does. Need help managing your finances? Contact me today. I'd be happy to assist you! https://rcpenner.com/contact

 

As always thank you for taking the time to read my blog. I truly hope it has helped.

Sincerely,

Rebecca C Penner CPA, CGA

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The Difference Between Budgets and Forecast

 

Do you own a business? If you answered yes, then this is an article you don’t want to miss. Business owners more often than not have little knowledge of where their company is in regard to their financial health. Meaning they have no idea if the company is doing well or not and if not what they will have to do to improve. This is where an accountant like me can help, with budgets and forecasts.

 

Budget Planning 

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Budgets and forecasts are similar financial tools that accountants use to establish plans for a company’s future. These tools enable us to see what is happening now versus what can/will happen in the future, whether your company is in a good financial state or not. Then once this information has been gathered a plan of action is put in place.

 Do you know if your company is meeting your financial goals? If not, I can help you find this information. So, let’s look at the differences between a budget and a forecast and why you need to do both.

 1. A budget reveals the shape a company is in financially within the span of a year.

 2. A forecast uses past historical data to predict a company’s future financial outcomes.

The purpose of a company having a budget and forecast is to help strategize and plan for the future and align the company goals across the organization.

 Both budgeting and forecasting are very important components of every company’s growth. This is needed especially during periods of change within a company. Click the link for access to a free excel budgeting spreadsheet: https://best-excel-tutorial.com/59-tips-and-tricks/248-company-budget

 

Budgeting Tips

 

Below are 2 main reasons a budget is important:

 1. Budgeting is an important tool for decision making

 2. A great way to monitor business performance

 

2 main reasons forecasting is valuable to businesses:

 1. A forecast is able to help you make informed decisions.

 2. With these decisions you can then develop a strategy.

 

When you first open your business, it is vitally important that you know what your financial situation is. Hiring someone with the skill and expertise in finance is extremely important, especially if you don’t know anything about budgeting and aren’t able to forecast where the company will go in the future. This is when you will definitely need a professional in your corner to help guide you.

 As always thank you for taking the time to read my blog. I truly hope it has helped.

Sincerely,

Rebecca C Penner CPA, CGA

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