Here we are again: tax season!  🤦‍♀️ But don't stress out, we are here to help you make this process as simple as possible.

When you can start filing?🕐
At this point you started compiling documents already. Good for you. The start date to start filing is Feb 20, 2023. Just wait until you have all your documents from your employer, contractor, bank institutions, charities, political parties, your pharmacy! 

When you can start sending us your documents?🕐
As soon as you are ready! Please let us know of any changes: new babies, new houses, if your marital status has changed, etc.

How you can send us the documents? 🤷‍♀️
Go to our website: www.dcastro.ca and Click on the CLIENT PORTAL button, you will be directed to the E-courier.ca 📲message, just type your email address, a description and attach your documents. And say Hi!! 

We use E-courier as our SECURE deposit box to keep all your documents safe and secure. All your messages are processed by encrypted email and files are kept confidential, because your privacy is important to us! No password required to send the documents and you will get a confirmation message as soon as we receive the message and when is opened.

All our processes are Online, from receiving documents, to preparing, sending back for review, signing and filing. We use encrypted and secure emails.

What's new for 2022?📢
While there are not many changes for this 2022 Tax return campaign, the changes made are significants:

• Amounts received related to COVID-1: If you received federal, provincial, or territorial government COVID-19 benefit payments, such as the Canada Recovery Benefit (CRB), Canada Recovery Caregiving Benefit (CRCB), Canada Recovery Sickness Benefit (CRSB), or Canada Worker Lockdown Benefit (CWLB), you will receive a T4A slip with instructions on how to report these amounts on your return.
• COVID-19 benefits repayment in a prior year: Complete and attach Form T1B, Request to Deduct Federal COVID-19 Benefits Repayment in a Prior Year, to your 2022 Income Tax and Benefit Return to request to have the amount of federal COVID-19 benefits that you repaid in 2022 deducted on your 2020 or 2021 return or split between your 2022 return and the return for the year that you received the benefit. The CRA will then automatically reassess your return(s) to apply the deduction so that you do not need to make a separate request to change your prior year return(s).
• Air quality improvement tax credit: If you were self-employed or a member of a partnership in 2022, you may be eligible to claim a refundable tax credit equals to 25% of your total ventilation expenses to improve ventilation or air quality at your place of business. 
• Disability tax credit For 2021 and later tax years, an individual diagnosed with type 1 diabetes is deemed to have met the two times and 14 hours per week requirements for life-sustaining therapy. 
• First-time home buyer's tax creditThe amount used to calculate the first-time home buyers' tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021. 
• Home accessibility tax credit The annual expense limit of the home accessibility tax credit has increased to $20,000.  
• Medical expense tax credit (for surrogacy and other expenses): The list of eligible medical expenses has been expanded to include amounts paid to fertility clinics and donor banks in Canada to obtain donor sperm or ova to enable the conception of a child by the individual, the individual's spouse or common-law partner, or a surrogate mother on behalf of the individual. In addition, certain expenses incurred in Canada for a surrogate or donor are considered medical expenses of the individual.

Send us a message today to secure your spot! 

The New Year always bring new hopes and opportunities. We go back to what we did the last year, and ​plan repeating what we did well and correcting the wrong actions.

The best resolutions often enrich your emotional path, but as a business owner having resolutions to build up your business is a priority as your business is your way of life. Focusing on your business health is really important becasue the better your business do, the best rewards you can take out.

How to create a list that help you and you are going to actually complete:

• Review your "WHY" and focus your efforts around it
• List Attainable Goals that you can track and meassure your progress
• Limit resolutions to a managable amount, break your big dreams into actionable steps
• Be specific and as clear as possible
• Allocate the funds or resources you are going to need to follow-up
• Review your resolutions monthly to check your progress.

A big part of fullfilling Resolutions is Accountability, you could find a partner or another business owner with similar goals to share your resolutions with and help you review and celebrate your wins.

I am choosing you as my accountability partner! Today, I'm sharing my 10 Business Resolutions for 2023

1. Review and update my Financial Projections for 2023 - DONE!
2. Automate my business as much as possible: Email list building, social media, onboarding clients and employees.
3. Commit to a social media routine  with daily and weekly post depending on the platform.
4. Read at least one book per month - I am back again with the Thought Readers Club with Lisa Larter
5. Provide stronger Employeei ncentives and training programs
6. Listen Closely to my customers
7. Create a membership program for clients looking to grow profits
8. Prioritize more my Work-Life balance
9. Be an active Leader
10. Become a better communicator

I'd reviewed and broke down these resolutions in small actions to achieve what I hope for in this 2023. Time to commit and take action.

What are you planning to achive in this New year? Have you write down your Resolutions already? 
Well, here is your chance to make it happen. Can you share your list with us?

As you run your business you plan and act daily! How to see the results of these decisions? By reviweing your Financial Statements.

Your business numbers give you a picture of the past operations, but can also help you predict where you are going, and most importantly, correct behaviors to change the results.

What are the most typical Financial reports you need to review with your bookkeeper/accountant?
✔Balance Sheet
✔Profit & Loss
✔Cash Flow
✔Accounts Payable Reports
✔Accounts Receivable Reports

Don't panic. Here is more information about these staments:

• Balance Sheet: is a statement of a business's assets, liabilities, and owner's equity as of any given date. A balance sheet gives you a snapshot of your company's financial position at a given point in time. It gives you information on the business resources (assets) and its sources of capital (equity and debt) at a specific point in time.
• Profit and Loss: According to Investopedia, “a profit and loss statement is a financial statement that summarizes the revenues, costs and expenses incurred during a specific period of time, usually a fiscal quarter or year.”. This report is also known as Income Statement and give information regarding the business "results", or the capacity that your business have to create profits, during a specific perior of time, not at a point in time. 
• Cash Flow: this report shows the real movement of your money, what actually happened to your "cash"  during a specific period. It compile all the inflows (sales, collected funds, loans, all the money in) and the outflows (expenses, loan payments, payment od debts, all the money out) This report can show your business' liquidiy position.

These 3 Financial Statmenets will help business owners evaluate their company's financial standing.

• Accounts Payable Reports: this report includes all your debt. It helps you track all business expenses to ensure accurate financial data, and more importantly, when you have to pay them. This report shows your overdue balance to vendors. 
• Accounts Receivable Reports: this report provides information on outstanding sales, bad debt, etc at a specific period in time. How much money is owed to you.

The Bottom Line? Financial Statements are a really important tool to manage your business. Why? Beacuse by knowing your numbers you can:

✔Make better investment decisions.
✔Know the financial structure, the company's growth capacity, its stability and profitability.
✔Evaluate the solvency and liquidity of the company and its ability to generate funds.
✔Guarantee suppliers and creditors fair compensation for their investment or allocation of resources or credits.
✔Diagnose the company's ability to generate income from its operating activities.
✔Identify the financial resources of the organization.
✔Show the results of resource management performed by administrators.

Ready to learn more? Comment with your questions.

Photo by Myriam Jessier on Unsplash

I am in business to serve, to find ways to help my clients do better and work with less stress and improve their finances. That's why I am happy to announce our new partnership with Canadian Financial with the goal of helping more clients business to grow and succeed.

Canadian Financial offers access to traditional & alternative lending options plus access to dealer programs, insurance programs and leading edge financial technology options. With access to over 25 programs and 230 lenders, Canadian Financial is here to help you reach your goals!

What solutions can you find here?

• Consumer Financing
• Insurance Porgrams
• Business Financing
• Fintech Platforms

Check here to look for a solution for your needs: 
 
Contact us for more details!

I am reaching out to let you know what is new for 2021 Personal Income Tax Season!

• What is the deadline to file your taxes in 2022?
  • On or before April 30, 2022 
  • On or before June 15 for the self-employed

It's important to file before the due date to avoid penalties and late fees, but also to get your refunds and benefits as soon as possible.

When is the last day to invest in RRSPs? 
The final date for 2021 RRSP contributions is March 1, 2022. All the contributions you make before this date are going to be used to reduce your taxable income for 2021! Contact your Financial Advisor today to check your RRSP's room and save money on taxes.
When can you start filing? 
The earliest day to file is February 21 as CRA is still updating tax rates and all the necessary information to process your taxes. 

When can you expect your refund?
This date is not written in stone and CRA will no guarantee a fix timeline, the expected date would be:

• 2 weeks if you file your taxes online
• 8 week if you file your taxes by paper
• 16 weeks if you file from out of the country​

What is the best way to get ready?
Open a "My business" account with CRA to access all your slips, sort out oll your medical expenses, donations and political contributions, documents regarding sale or properties, Income and expenses for activities such as business, rentals, foreing business, etc. Let us know when you are ready!

Principal Residence Reporting
All taxpayers who sell their home must report the sale on their tax return, even if it was their principal residence for the whole time they owned it. There are substantial penalties for not reporting the sale. If you sold your home in 2021,provide us with all the details.

Foreign Property Disclosure
Canadian resident individuals who held property outside Canada with a total cost of more than $100,000 CAD at any time in the tax year must comply with special reporting to the CRA. There are substantial penalties for non-compliance.

Business & Rental Income and Expenses:
You will report your gross income and deduct allowable expenses related to running your business, rental properties. If you have questions regarding the expenses you can claim send us an email and we can share the list with you. 

Employees working from home
CRA has extended to 2022 the "Home Office Expenses" claim and increase it from $400 to $500. This method can be used for tax years 2020, 2021 & 2022. You can still use both the Simplified and the Regular method. Follow CRA link to know more details:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses.html
Still have questions? Send us a message to admin@d

My name is Dayani, Cuban-born 🇨🇺 now living in Ottawa, Canada 🇨🇦 with my 22 yo daughter and my cute dog Lili. Single mom👧, Coffee lover ☕️, and avid reader📚, finding and sharing my voice as I live fully on my terms. I am sharing with you one of my fist pics in Ottawa.

Former Geologist and current Accountant we packed our life in a suitcase and moved 🛫 to Canada 14 years ago to create a better life for us. I was shocked to discover that my credentials were worthless and I had to start all over again.

After landing a "teen" job in a store I went back to school, without any savings.😳 Soon after, I stared working as a junior accountant with one of the most amazing woman I met Marlene L. Grant💖. She tauhgt me so much: canadian accounting, software, process, more work ethics and kindess as a way to live.

Moving aparently "up" I starting working for a huge firm but after 2 years I lost my job 🤦‍♀️after a change in management and decided to open my own business to support myself and my family without the pain of not getting a paycheque just because another person said so. And I wanted time for myself and my daughter. Family is really important to me.

Been in business for more that 5 years 🙋‍♀️(add to that 5 more years of thinking I had a business when I was just working for myself and not been well paid) had allow me to open my mind and grow with my community and clients. I'd used also personal and energy healing ❤️‍🩹 that helped me realize that I have something to say, something important to share. My struggles and experience as an Immigrant single mom who found her place, her voice and is building her chosen lifestyle can be useful - and I hope inspiring - for others to realize that building a profitable business, measuring the right numbers💰 is an option, a way to utilize your skills and serve others.

This is why I intend to guide other immigrant women to gain confidence around their finances and be independet. That is the WHY of my Survey. It's not a selling tool, I am just gathering information on what is important to you and your business. I am collecting information to serve you better! And there is a prize! Check Before  Sunday the 30th midnight.

Can you help me? Really appreciate all the help!

👇👇👇👇👇👇
https://forms.gle/SmpuDzgpoksYp9VbA

​After you file your tax return there is always a possibility that you and your business are going to be audited. And there is also no guaranteed way to do well. The best way to navigate this process is working proactively to have all the documents in order and being able to present all the documents are requested from you.

​I wanted to share some tips with you to avoid the pain of paying penalties and to have the best set of books to be stress free in case of and audit. These tips will help you get the best result from an audit:

1. Know your rights: It's important to know why the auditors are requesting a particular document and to understand your rights and the possible criminal implications. Read CRA website and be on top of the tax rules. be aware that you can challenge the results of the audit.
2. Don't withhold requested information: always provide the documents on the date they are required. But be aware to provide just the documents they asked for, not too many documents. Just they ones they asked for.
3. Communication is key: don't avoid contacting the auditor in advance to set up dates, place of meetings, if you need representation. Having a representative will save you stress as they will deal with the auditors. But don't have meaningless conversation with the reviewer, just ask the questions they ask.
4. Be proactive: always keep proper records, record only the expenses you are allow to, keep mileage and home office records!!! If you have employees, keep always contracts in place, and be aware of all the labour rules, both provincial and federally.
5. Be responsible: Even if you hire someone to file your taxes, be responsible and review the data, the consistency and that you are in line with other business in your same industry.

These tips work if you file personal or business taxes. The auditor job is to find areas where additional taxes can be collected and yours is to keep your money safe. Always work in advance. Be ready. 

We can help you with the record keeping, helping you having an audit-proof set of books. Contact us today if you have questions. 

Photo by Scott Graham on Unsplash

​Your business is growing and you need to start hiring! Congrats! But before finding the candidates you need to decide: are you looking for a subcontractor or for an employee? Are you outsourcing a service or hiring an ideal candidate with the skills to grow in your team? What are the rules to follow?

As a business owner you need to comply with government regulations when hiring. Canada Revenue Agency (CRA) is really strict with these rules as they are going to decide if you need to deduct liabilities from the person paycheque, if the person is eligible for regular employment insurance, how they are going to be treated under the Canada Pension Plan program, and decide the conditions of employment.

The easy way is not always the best way here. Most of the time due to not knowing the full consequences of hiring in the wrong way you can get in trouble with CRA en end paying penalties and ate fee on the liabilities you needed to remit to CRA. 

There are 2 to main areas that CRA asks when auditing a business hiring system (Quebec has its own set of rules) that rule for all the business: 

1. Intention?
2. Control?

If the intention for both the worker and the payee is having a contract for service (business relationship) or they intend to enter into a contract for services (employment relationship)? Sometimes the intention is clear and both parties are in agreement, even they write and sign an agreement, and this is the proof of common intent. If there is no contract, CRA assumes there is not common intent and to decide the intention an examination of both parties' action is required. Be aware that this is just one step, just intention doesn't determine the employment status.

Once you can determine the intention, then you go to decide who is in control. This point will clarify the working relationship. These question relate to the following elements:

• level of control the payer has over the worker's activities
• Who is the person providing the tools and equipment
• whether the worker can subcontract the work or hire assistants
• the degree of financial risk of the worker
• the degree of responsibility for investments and management of the worker
• the worker's opportunity for profit
• any other relevant factors, such as written contracts

Based on all the answers CRA decide if the actual working conditions are consistent with a contract of service or a contract for services.

The actual degree of control may be difficult to determine when you are hiring a professional such as doctors, engineers, etc as their expertise and specialized training will require less directions and guidance in their activities. They tend to be more independent that let's say a cashier who you give an schedule, daily activities to complete, and systems to follow.

When you provide the tools, decide the working hours, take all the financial risks and are the only one with the capacity to hire someone as assistant for the work and/or subcontract the work, then you are hiring an employee and you have obligations under the Federal Labour standard  and your provincial Employment Standards https://www.canada.ca/en/services/jobs/workplace/federal-labour-standards.html). You are obligated to calculate payroll and deduct Employment Insurance, Canada Pension Plan and Income Taxes, both federal and Provincial. At the end of each month you will need to remit the deductions plus the employer burden to CRA under your Payroll account.

If hiring subcontractors, then they are in control of their schedules, they have the capacity of hiring another person to do the job, as you are contracting a service, the result! They are also incurring in financial risks. The subcontractors need to keep their own set of books, save money to pay their own taxes and register for HST/GST when needed.

Either if you are looking for a subcontractor or an employee you need to be informed and make the right decision. Don't go with the note of "saving money" and "make things easier" hiring a subcontractor when in reality the relationship is for employment. Be complaint of the regulations and your business will flourish with succeeds and growth.

Are you still in doubt? Contact us today with your questions! 

Photo by Gabrielle Henderson on Unsplash