It’s true that each business is unique; however, there are some common elements of business planning that many entrepreneurs tend to neglect. Understanding these basics is your ticket to creating a business that runs smoothly, year after year.

Watch this informative hour with our friends at Purpose CPA to decide what should go at the top of your to-do list and gain a better understanding of how important it is to start your business the right way. In this session, you will:

• Understand the value of having a business plan
• Discover what to consider when choosing a business structure
• Gain a better understanding of monitoring cash flow
• Learn how to make informed decisions regarding taxes

Sponsored by CPA BC and CPA Canada. Delivered in partnership with Purpose CPA.

Facilitator: Cathy Burrell, Entrepreneur in Residence, WeBC

Panelists:

• Chad Chang, Co-Founder, Prpose CPA
• Matthew Wong, Co-Founder, Purpose CPA

About the Panelists

Chad Chang

Chad Chang is a CPA practitioner helping owners and leaders build good lasting businesses.

Over 20 years of experience spanning a business’ core functions.
From sales and marketing to customer service.
To business analysis and large technology project management and transformation.
To human resources, health & safety, financial analysis, accounting and tax.
To leadership, strategy development, and optimizing performance.
And now, helping to build Canadian businesses.

Past 8 years focusing on the construction, real estate, and property management industry.

Chair of CPA BC Construction Forum

Matt Wong

Matt Wong is the Co-Founder of Purpose CPA. He has over 14 years of experience leading finance, people, and IT teams from manufacturing to retail & ecommerce. As both a pragmatist and technologist, Matt defaults to technology to improve efficiency but is practical to design simple solutions when necessary. Along with his Business Partner Chad Chang, Matt co-founded Purpose CPA as an impact organization to help clients look at people, planet, and profit. Matt is a CPA, CGA and certified Quickbooks Online and Xero advisor.

Outside of Advisory, Matt loves running and spending time with his family in beautiful Richmond, BC. He is a member of the Richmond Chamber of Commerce and a former Chair of the CPABC Vancouver Chapter.

The post Top 5 Mistakes Made by New Businesses And How to Avoid Them appeared first on WeBC.

What Can You Claim?

You can deduct a portion of your home expenses that directly relate to your business activities, including:

• Utilities (e.g., heat, electricity, water)
• Maintenance and repairs
• Rent or property taxes
• Home insurance
• Mortgage interest (for homeowners)
• Internet and phone costs

Eligibility Criteria

To qualify, your home must be your principal place of business, or you must regularly use a specific area of your home exclusively for meeting clients, customers, or patients.

How to Calculate Expenses

• Determine the percentage of your home used for business by comparing the area used for work to the total area of your home.
• Apply this percentage to your eligible expenses to calculate the deductible amount.

Important Notes

• You cannot deduct expenses that are purely personal in nature.
• The deduction is limited to the income earned from your business. Excess expenses can be carried forward to future years.
• Always check the Canada Revenue Agency (CRA) for updated regulations to ensure your claims comply with the latest tax rules.

NOTE: To ensure compliance with tax regulations and maximize your deductions, it’s recommended to consult with a qualified accountant or tax professional. They can provide tailored guidance specific to your business and financial situation.

The post Claiming Business-Use-of-Home Expenses appeared first on WeBC.

The Canada Revenue Agency (CRA) provides detailed guidance for businesses on when they are required to register for and charge GST/HST. It explains the thresholds, exemptions, and scenarios that determine your obligations, ensuring compliance with Canadian tax laws.

Generally, you will need to register for your Business Number (BN) before you can register for a GST/HST account.

You may register for a BN by using the online service at Business Registration Online (BRO). This is the quickest way to register for a BN. Once you have obtained your BN, you can then continue in the same session to register for a GST/HST account.

If you already have a BN and only need to register for a GST/HST account, you can Open or Manage an Account.

Disclaimer: For personalized advice and to ensure your business meets all requirements, consider consulting a professional accountant or the CRA directly.

The post Register to Collect GST appeared first on WeBC.

You must register to collect PST if you are located in B.C. and you sell or lease taxable goods, or provide software or taxable services in the ordinary course of your business in B.C. You may also need to register if you’re located outside B.C.

For detailed information about how to register and who must register to collect PST, see Registering to Collect PST (Bulletin PST 001) (PDF, 376KB).

The post Register to Collect PST appeared first on WeBC.

Embarking on the journey to open a restaurant in British Columbia is an exciting endeavor. To navigate this process smoothly, the provincial government offers a comprehensive online guide that outlines essential steps and resources.

Resources Available:

• Business Planning: Craft a solid business plan to define your restaurant’s concept, target market, and financial projections. This foundational step sets the stage for your venture’s success.
• Location & Zoning: Identify the perfect location and ensure it complies with local zoning regulations. Understanding these requirements early can prevent costly adjustments later.
• Register Your Business: Learn how to register your restaurant with the appropriate provincial and federal agencies, securing your business name and legal structure.
• Permits & Licences: Discover the necessary permits and licenses, such as health operating permits and municipal business licenses, to operate legally and safely.
• Employees: Understand the hiring process, employee certifications, and your obligations under the B.C. Employment Standards Act to build a compliant and efficient team.
• Operation & Maintenance: Get insights into ongoing responsibilities, including tax collection, permit renewals, and regular inspections, to keep your restaurant running smoothly.

For detailed information and helpful tools like checklists and infographics, visit the Starting a Restaurant in B.C. online guide. This resource is designed to support you at every step, turning your restaurant dream into a reality.

The post Starting a Restaurant in BC appeared first on WeBC.

The Checklist for Small Businesses is for people like you who are starting a business. You can get information about your fiscal obligations and their implications, and you can also get information on interactions between your business and the Canada Revenue Agency (CRA).

Examples of What You’ll Learn from the CRA Checklist:

• Business Registration and Accounts: Learn about registering for a business number and setting up GST/HST accounts if applicable.
• Tax Filing Requirements: Understand what forms you need to complete and when to submit them.
• Record Keeping: Discover best practices for maintaining accurate records to support your tax filings.
• Deductions and Credits: Identify eligible expenses and tax credits to optimize your returns.
• Payroll Obligations: Find out how to manage payroll deductions and remittances for employees.
• …and More!

Want to boost your business skills? Check out our self-paced SMART Programs! These free courses are designed to help you understand key concepts, work through interactive case studies and complete activities that apply the learning to your own business. Learn more >>>

The post CRA Checklist for Small Businesses appeared first on WeBC.

The Canada Revenue Agency (CRA) offers a wealth of online resources designed to help businesses in Canada manage their federal tax responsibilities with confidence. Whether you’re just starting out or looking to streamline your financial processes, CRA’s tools and information cover everything you need to stay compliant and on track.

Having a clear understanding of your business’s federal tax obligations is crucial for financial success.

Visit the CRA Business Taxes page for current Federal tax requirements and information.

Provincial Taxes

If your business operates in British Columbia, understanding provincial tax obligations is essential for compliance and smooth operations. The Provincial Sales Tax (PST) is a key component of BC’s tax system, along with other provincial levies that may apply to your business activities.

What is PST?

The Provincial Sales Tax (PST) is a 7% tax applied to the purchase or use of taxable goods, software, and services in BC. Businesses may need to register, collect, and remit PST to the provincial government. In addition to PST, your business may need to comply with other provincial tax regulations.

Visit the Small Business Guide to PST page for current Provincial tax requirements and information.

The Importance of Seeking Professional Advice

While CRA and the Province of BC resources are invaluable for understanding and managing your business taxes, consulting a Chartered Professional Accountant (CPA) is a critical step for ensuring long-term financial health. An experienced accountant can:

• Provide tailored advice based on your business’s unique structure and financial situation.
• Help you navigate complex tax laws and regulations, ensuring compliance.
• Identify additional tax-saving opportunities, such as credits or deductions you may not be aware of.
• Offer strategic guidance for long-term planning, including cash flow management and growth strategies.

Partnering with a professional accountant gives you peace of mind, allowing you to focus on running your business while knowing your financial obligations are in expert hands.

Pair these resources with our free on-demand SMART course, “Financial Fitness: Keep Your Business Financially Healthy” to take full control of your financial health.

The post Business Taxes in BC appeared first on WeBC.

Key Digital Services:

• My Business Account: A secure portal for business owners to manage their tax affairs online. Services include filing GST/HST returns, viewing account balances, and updating business information.
• Represent a Client: Allows authorized employees or representatives to access and manage tax information on behalf of a business. This service facilitates tasks such as filing returns and making payments.
• My Account: For individuals reporting business income on personal tax returns, this service provides access to personal tax information and services.

Benefits of Using CRA’s Digital Services:

• Efficiency: Handle tax matters swiftly with online filing and payment options.
• Accessibility: Access your business tax information anytime, anywhere.
• Security: Protect sensitive data with secure online platforms.

To explore and register for these services, visit the CRA’s Digital Services for Businesses page. Embracing these digital tools can simplify your tax processes and enhance your business operations.

The post Digital Services for Businesses (CRA) appeared first on WeBC.