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The Silver Fox Blog

We are pleased to provide a variety of resources on accounting, taxation and other related subjects that we hope will be helpful to both individuals and businesses.

New Federal Tax Implications for Physicians

Finance Minister Bill Morneau introduced many proposed changes to the Federal Income Tax Regulations. With the current majority in the House of Commons, it is very likely that these proposals will pass into law. Your professional accountant should have advised you of the changes as I am advising my clients.
To see their specific impact on you or your private company, you can click here

How to prepare for these new changes?

There are strategies that can be developed in advance of the implementation of the proposed legislation. You should prepare for these as soon as possible so that you might be eligible for a grandfather clause if one is provided. One of my client’s spouse, who started her company with her mate but has stopped working there, has been advised to keep her shares in the company for lower taxed dividends and potential capital gains benefits.
There are some other activities you can undertake to further your income, and that is to review your billings.

How can we help you with these new changes?

As professional accountants who have worked for the Ministry of Health, we can review and guarantee to enhance your future billings. We look at your past and current billings and train your office staff to ensure optimal billing. Our expertise and statistical analysis allow us to identify many missed opportunities; going back six months to correct previous billing “omissions” and recover fees for work done but not billed. With our expertise, no time is wasted, and the smother the submission the quicker and easier the payment. As professional accountants with knowledge of PHIPA business confidentiality and patient privacy are guaranteed.

How can I learn more about this issue?

Please e-mail us at or call us at (416-953-7139) if you would like more information on this offer, or on the other services our firm can provide to you, or if you would prefer to meet with one of our professional staff in regards to tax, accounting, billing and consulting services.  Alternatively, you can check us out on our website at

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The Main Financial Stresses For Pre-Retirement Canadians

Retirement should be a happy conclusion to an active working lifeRetirement should be a happy conclusion to an active working life, something fondly anticipated and planned for with enthusiasm. Not everyone feels that way, unfortunately. According to a survey commissioned by HSBC, the majority of Canadians are putting off retirement due to fears over the future. The research revealed that 93 percent of Canadians state that financial stresses, minimal savings, excessive debt, or a need to support family members and other dependents, were turning their dreams of retirement into an impending financial nightmare.

Retirement: a distant dream?

Although pre-retirees over the age of 45 represent the majority of Canadians expressing a desire to retire in the next five years (74 percent) almost half of them won’t be in a position to do so. Around 45 percent admitted that early retirement was an impossible fantasy. Worse still, a further 14 percent of over-45s don’t even see retirement as a possibility in the foreseeable future. Although some respondents cited other concerns, including commitments to their workplaces and projects, or a sense of having more to give in their careers. But financial concerns were far and away the most common reason. Other findings from the survey included:

  • 'I haven't saved enough' The biggest reason for delaying retirement is that pre-retirees feel they haven't saved enough. 76 percent of respondents gave stresses over savings as their reason for staying in work.
  • 'I have too much debt' The second most common reason for putting off retirement was given as stresses over debt. A full 35 percent stated that debt was a major reason for staying in work.
  • 'I have dependants' Family members or other dependants still needing their income, was the third most common reason for staying in work. In fact, 23 percent gave this as a major reason for delaying retirement. Meanwhile, 43 percent also mentioned that caring for elderly parents was a factor, too.
  • 'I'm afraid of poor health' Although it generally didn't feature as a major roadblock, coping with failing health was a big concern across pre-retirees, with 74 percent mentioning it as a source of financial worry. A further 55 percent stated that they were concerned about a partner's health.
  • Given the current economic climate, it's unlikely that concerns of Canadian pre-retirees will resolve themselves on their own. But by scaling back their retirement plans or looking around for other retirement saving options (such as a dividend-paying whole life insurance policy), pre-retirees can still look forward to escaping the rat-race
  • 'I have too much debt' The second most common reason for putting off retirement was given as stresses over debt. A full 35 percent stated that debt was a major reason for staying in work.
  • 'I have dependants' Family members or other dependants still needing their income, was the third most common reason for staying in work. In fact, 23 percent gave this as a major reason for delaying retirement. Meanwhile, 43 percent also mentioned that caring for elderly parents was a factor, too.
  • 'I'm afraid of poor health' Although it generally didn't feature as a major roadblock, coping with failing health was a big concern across pre-retirees, with 74 percent mentioning it as a source of financial worry. A further 55 percent stated that they were concerned about a partner's health.

Given the current economic climate, it's unlikely that concerns of Canadian pre-retirees will resolve themselves on their own. But by scaling back their retirement plans or looking around for other retirement saving options (such as a dividend-paying whole life insurance policy), pre-retirees can still look forward to escaping the rat-race

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Tax Saving Ideas

When you own your own Canadian Controlled Private Corporation (CCPC), there are many tax saving ideas you can evaluate in addition to the small business tax rate. These include some of the points listed below:

  • Maximize both yours and your spouse’s tax-free savings account
    • Because you are using after tax dollars here, it is a wise investment for secure investments that pay interest because all gains are tax free. It should be for conservative investments because you cannot claim any losses against income.
  • Make sure that children under 18 have a registered Education Savings Plan 
    • This is a government-registered savings plan that helps you save for a child’s post-secondary education. And the federal government adds a 20% contribution top up to the savings plan to a maximum of $500.00 per year. You can only contribute until age 18 but you can start at any time after the child is born. The biggest benefit is that when the student withdraws the investment income and grants for educational purposes, the withdrawals are taxed in the student’s hands, typically at a much lower rate.

Again, use it in very conservative permitted investments because losses are not written off and the range of investments is very restricted.

  • Buy a company medical plan for a number of reasons
    • The employer’s share of the insurance is fully deductible
    • If you are older it reduces the average age on group premiums
    • The employees’ share subject to the 3% of gross income threshold
  • Implement company pension plan for Senior Management because company contributions to the company pension plan are deductible within the company.
    • The employees portion of the company pension plan are treated the same as RRSP contributions in the hands of the employee. While this will reduce employee RRSP contributions room, it also reduces corporate taxes.
  • Maximize both your and your spousal RRSP contributions because it could return up to 45+% of both your contributions.
  • Consider paying dividends in lieu of salaries because dividends are taxed at a lower rate than income.
    • For example, in Ontario, a $100,000 salary pays total contributions of $25,779.31 whereas a $50,000 salary and a &50,000 dividend pays $16,763.47 as well as the adjustments in CPP contributions.
  • Be the most generous boss in reimbursing your senior managers expenses.
    • While this is a taxable benefit that must be included in box 40 of your T4’s this is still less than half of what the employee would pay in after tax dollars.
  • Currently, rewards from company controlled credit cards such as travel points are not taxable in the hands of the card holder even if the card holder is an employee.
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Realtors and The Canadian Tax Man

Nobody likes to pay taxes, but we all enjoy government services such as Universal Health Care, Old Age Security and Child Benefit Tax Credits. Because of this, we all grudgingly fulfill our obligation to the government by paying them. Real estate agents are no different, although they have some extra benefits and duties to look at. Through discussing these, I would like to help you legally maximize your benefits and minimize your tax pain.

Because you are self-employed, the Canada Revenue Agency gives you an extra 6 weeks to file your tax return. However, you are expected to pay as of April 30th or face a penalty.

The first thing every agent should do is try to separate their business expenses from their personal expenses. The easiest way to do this is to get a separate credit card for your business and charge all your expenses to that card. This will keep you better organized and help you file taxes at year end. Consider investing $5-10 a month for software to photograph your receipts and enter them directly into your accounting system. Your accounting professional can help you with this.

In addition to your business credit card, set up a business account for the inflow and outflow of transactions. This also keeps your revenues and expenses in one place so that they are easy to analyze.

Make sure you have an HST or GST number. Be sure to calculate all your collected and paid-out HST. The difference is the amount that you have collected on behalf of the government and it is their money. Remember that not filing on time or not paying on time will result in additional penalties. Because of the type of industry that realtors occupy, using the quick method of HST calculation is likely more beneficial to you. Make sure you discuss this option with your accountant – this is one of many areas where accountants earn their money over bookkeepers.

As far as vehicle expenses are concerned, either use your own car or a separate car for business. You can own or lease the car, but there is a limit of $30,000 on the purchase price of a car used for business. If you have Cadillac tastes, consider leasing and keeping the monthly lease costs below $800, the monthly maximum allowed by the CRA. For operating costs, keep an approximate log of the distances travelled. Vehicle expenses can be claimed in this way or by using your company credit card. There is also the option of mileage tracker software.

If you take training of any kind, depending on your designation, your training expense may be a complete expense or just a tax credit. Talk to your accounting professional to discuss your options, but make sure to keep your receipts with detailed descriptions.

Commission splits are taxable in and out. Remember this when splitting a sale or splitting with a mortgage broker. In addition, if you issue a commission rebate to a client, remember the rebate is not taxable, so there is no HST on the rebate.

If your gross revenues exceed $100 000, consider incorporating and making yourself subject to the small business deduction tax rate (currently 17.5%). If you do, your tax returns will be more complex and you will have to issue yourself a T4 or T5 (salary or dividend), but you can also become the most generous business owner in the world. You will be able to give your sole employee as many benefits as you can think of. If the government considers it a reasonable expense, it will be deducted from your corporate earnings, and will represent a taxable benefit in your hands as the employee. One example of this is the reduced mortgage rates offered by banks to their employees.

There are many other turns and twists in the road, through which a professional accountant can guide you. The standard for accountants, in my opinion, is how well they can adapt to their client’s needs. See how a qualified professional can help you today.

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The World's Most Inspiring Accountants

This is not my article but an extract from a book by that title written by Pipe Clegg and Lucas. I truly believe that expectations of these services is reasonable to expect from a good relationship with your accountant or accounting firm.

Inspirational story 1 — AA Chartered Accountants

From working 80 hours a week to just 10 — the incredible difference this accountant made

A sole practitioner with a team of four based in Peterborough, England who has helped a client:

• Obtain £200,000 VAT refund within a week of submission

 • Increase net profits by 142%

• Reduce his working hours from 70-80 to just 10 per week

• Reduce debt by £128,000

"Before, 1 felt 1 had failed my family," the client says. "Now, I have the time, money and energy to support them properly!'

Background information

Adam's Cash & Carry Ltd is based in Peterborough and supplies food and other products to the catering trade. The company founder, Abdul Aziz, started the business in 2001 out of frustration with the poor service he had from his suppliers when he owned a fast food outlet himself. He had a clear vision of what a great supplier should look like and a driving ambition to succeed.

The situation at the start:

Abdul attended a seminar run by AA Accountants in December 2011, with a presentation by Steve Pipe on "How to get an extra £2 million from your business". At that time he had recently moved the business to a 2.67 acre site with a 30,000 sq. ft. warehouse, all on a much bigger scale than his former premises.

•     Debt was out of control, cash flow was poor, as was the credit rating of the business, and suppliers were not willing to extend credit terms.

•     The new site had cost Elm + VAT and the business had had to fund the £200,000 VAT element of the purchase themselves. Their accountant at the time had told them it would take 3-4 months to reclaim the VAT and having such a large sum locked up had put the business at risk of closure.

•     The business needed to invest in a large commercial freezer at a cost of £200,000 + VAT but the bank had declined to offer further funding as had other third party lenders. The freezer was critical to the business as without it they could not store the frozen produce that formed the bulk of the products they offered. This was another challenge to the viability of the business.

•     Profit margins were around 11% and Abdul couldn't see any way to improve them. He was convinced that the only way to gain and retain customers was to keep his prices low.

•     The business relied on Abdul for all decision-making, so he was    working for 70-80 hours each week. As well as the impact on the efficiency of the business, his home life was seriously affected as he had very little time to spend with his wife and family.

•     There were also huge issues with Abdul's employees due to the lack of targets, unclear job roles, a lack of accountability and a poor team culture.

•     Customer care was weak and there was no complaints procedure for customers.

•     The book-keeper at the time was unreliable and did not appreciate what the business needed in terms of financial information. "He made lots of errors and took up too much of my time," Abdul says now. This lack of management information was partly to blame for the bank's refusal to extend or increase the overdraft.

•     Abdul felt he was paying too much tax as others in his industry were telling him this, but his accountant had never suggested any form of tax planning. This was causing further cash flow issues.

•     The business lacked a clear vision. Although Abdul knew that he wanted to be successful, he did not have crystal clarity on what success meant in both tangible and intangible terms. His team certainly had no idea of the vision or the mission of the business.

The "How to get an extra £2 million from your business" presentation opened Abdul's eyes to the potential within his business and he immediately started work with Shaz Nawaz of AA.

How their accountants helped

The most pressing issue was the VAT refund that had put the business in jeopardy. Shaz worked with his contacts at HMRC, submitted the VAT refund prior to the end of the VAT quarter and negotiated the refund within a week of the submission. As Shaz says, "Getting a refund within a week of the VAT return being submitted is literally unheard of!"

The new premises had been bought from a large corporate and they had initially valued the plant and machinery at £1. Shaz liaised with a capital allowances specialist and entered a claim for £269,444. After long and protracted negotiations the claim was successfully agreed, and resulted in a very big tax saving.

Once these big issues had been dealt with, Shaz began a thorough overhaul of the entire business:

Systems for increased efficiency and better team culture - Shaz comments, "We had carte blanche to introduce as many systems as necessary to improve the efficiency of the business. Through working with us, Abdul had experienced at first-hand the benefits of having robust systems and processes and he knew that this was the way for his own business to run smoothly and efficiently in his absence.

"We built and developed a new team culture, one which was focused on outcomes and results. Client care was the number one priority and we worked diligently with the team to improve this.

"In addition we worked through the whole business structure, implementing systems for sales and marketing, client grading, referrals, admin duties, efficiencies, team management and every other area of the business. This resulted in the team working more cohesively and customers were delighted as they received a consistent and improved service."

This freed up much of Abdul's time to focus on other things apart from the day to day running of the business. More profitable pricing - Benchmarking the business against the competition showed Abdul that it was possible to achieve higher margins. He was persuaded to increase his prices, on a step-by-step basis. The results were clear almost immediately - a 19.2% increase in his gross margin ratio. The actual gross profit, in monetary terms, was increased by 109%.

The sales team began to systematically target a higher proportion of the 'diamond' grade customers, as these were the most profitable, and they developed a specific 'diamond' client care programme. High margin products that weren't selling well also became the focus of a cross-selling initiative.

Increased overdraft Shaz set up a meeting with himself, Abdul and the bank manager to discuss increasing the overdraft. He compiled a succinct One Page Business Plan alongside a projection and cash flow statement to demonstrate how the business would service the overdraft and improve its financial standing.

"The bank manager was extremely impressed with our plans and our professional approach to assisting our client," Shaz says. "He agreed the increase in the overdraft, and due to being so impressed with our approach, he also became an introducer to our firm, referring his contacts to us."

Tax savings - Shaz arranged two meetings a year with Abdul (one pre and one post-year-end) to discuss remuneration and corporation tax planning. Using AVN tax planning software, he was able to show Abdul all the options for extracting profits from the business so he could make the best decision and plan for the future. With some additional advanced tax planning, Abdul saved £15,000 in one year alone.

Better financial information - As the management information was so weak, Shaz arranged for one of his team to work in the business one day a week as the company's finance director. This meant initially arranging and supervising the training for one of Abdul's team and then implementing regular reviews of the financial statistics for the company and the production of management accounts.

Clarity of vision, mission and goals - The One Page Business Plan helped Abdul to clarify what he wanted from the business and how he defined success in measurable terms. Shaz explains, "We held strategy sessions with the senior team to get their input and their buy-in and worked with the whole team to gain clarity on the purpose of the business. From there we developed a clear mission for the business and by focusing on where they wanted to be in 3 and 5 years, the senior team members were able to help articulate the vision. We then agreed on SMART goals to help the business achieve its vision and mission."

The differences it made

•     The biggest change has been to Abdul's work-life balance. His working hours have reduced to just 10 each week and even then he says that it's not really working, just catching up with his team and meeting customers. The impact of this on his family life has been enormous. Abdul can now spend much more time at home with his wife and children, so everyone is happier and less stressed. His son had long held an ambition to be sales manager of the business, but Abdul had always felt he was too inexperienced. With an external training programme and additional support from Shaz, he was made sales director in January 2015.

•     Over the three years of working with Shaz, the business has seen turnover increase by 104%, gross profit margins increase by 19% and net profit increase by 142%.

•     Shaz has helped Abdul to utilise his large site by leasing out car parking space. He also advised him to add some storage containers. "These can be rented to his customers on an annual agreement. They benefit through savings on bulk buying and he sells even more products to those customers for them to store in the containers!" Aside from the initial cost of buying the containers, the total rental income is pure profit. This means that in 2016 the net profit will increase by 109% excluding the normal annual increase from profits generated by additional sales, cross selling, efficiency etc.

•     Debt has reduced by £128,763.

•     12 additional jobs have been created and, with a huge investment in team development and training, many existing team members have been promoted to senior roles.

•     Customer feedback scores have risen from an average of 6.6 to 9.1.Customers are spending more, more customers have developed into diamond (i.e. top grade) clients, the business gets more referrals and customer retention rates and lifetime value have improved.

How it made them feel


This is the word Abdul uses to describe his life now - a very long way from the hopelessness he felt before he started working with Shaz.

As well as the success of the cash and carry business, he has been able to fulfil his ambition of becoming a property developer. Shaz has helped him to purchase eight new properties and to develop a piece of land to build 20 flats. And even more excitingly, he has also started flying lessons with the aim of becoming a pilot.

AA has been able to utilise the full range of their knowledge and expertise  to support Abdul, and has brought in all the AVN tools and software to assist them. "It's been a hugely satisfying experience," Shaz says. "We've charged a five figure fee for our services and Abdul has been happy to pay that because he could see the ROI almost immediately. The hard numbers speak for themselves, but we all like to see the human side of success too, as, ultimately, this is more important than the numbers. What all this proves is that when you apply the processes the numbers will work for you and the effects can and will have a profound effect on the lives of those involved:'

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How the Pareto Principle Can Help In Your Business

For new businesses that are seeking growth, the general statement "We need to hunt for more customers" can become an unstable sales directive. What new businesses need to thrive is to have the right customers that will drive profitability upward. Now we can ask; who are the right customers? When you apply the Pareto Principle, also called the 80/20 Rule, you can easily know the right customers for your business.

The 80/20 Rule is now a familiar business principle, resulting in the often-repeated phrase, “80% of your sales come from 20% of your customers”. On the other hand, 80% of your complaints come from 20% of your customers, and 80% of the profits you make in your business come from 20% of your total business transactions.

The same Pareto Principle is also applicable to a variety of other items and events. For instance, we wear 20% of our clothing, we spend 80% of our time with 20% of our acquaintances, 80% of interruptions we get usually come from the same 20% of people, 20% of the work we do requires 80% of our time and resources and so on. You can apply the 80/20 Rule to almost anything in life; from business and time management principles, to clutter and physical possessions. The precise percentages may differ, but the bottom line of the principle remains the same.

The business cum management consultant, Joseph Juran made the assertion in 1941 that 80% of the effects come from 20% of the causes. Although Juran dubbed the Pareto principle after the Italian economist Vilfredo Pareto whom in 1906 observed that 80% of the land in Italy was owned by 20% of the total population.

Although the Pareto Principle had been for decades, but the theory behind the principle remains evergreen. Below are some business examples of the Pareto Principle:

  • 80% of your profits come from 20% of your main customers,
  • 80% of your sales come from 20% of your main products or services,
  • 80% of your defects come from 20% of your products.
A Pareto analysis will highlight the market's perception of the business by laying emphasis on the key products or customer demographics. Through the actions of your buyers, the Pareto Principle will assist you to refine the business' structure to further satisfy the market. The influence of the Pareto Principle within the business will be made known in the tactical planning for sales and marketing, departmental staff restructuring, and product or service design and inventory allocation.

How can this simple Pareto principle help my business?

Pareto principle helps you to focus more on your key customers, thereby causing areduction in transaction costs and operational difficulties. With Pareto principle, marketing programs can be cost effectively; scaled to reach potential customers of similar demographics as your main customers. As the number of transactions and operational difficulty reduces, an opportunity will arise to reallocate staff so as to get the most out of their contributions. Determining the key products, aside complimentary offerings, creates an opportunity to simplify services and reduce product varieties. Reduction in product or service variety will allow for a narrower inventories resulting in better cash flows for the business.

What will happen to the customers we discourage over time? By luck they will gravitate toward the competition, by increasing their lead time and costs.

Operational difficulty is detrimental to business’ success. Not only does it cause challenges for employees, but also could quickly become frustrating for customers. The Pareto Principle will help you identify opportunities to simplify and allow the business to really concentrate efforts on the needs of the customer!

Through the application of the Pareto Principle together with appropriate business methodologies, a responsive and customer centered operation will quickly materialize.

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Hamlet’s Question Rephrased Should I or Should I Not Become Independent

Sound Advice Followed by a Buried Ad

This article was originally written for property managers, but has been revamped for a more general audience.

There are many pros and cons to becoming independent, but the individual has to be taken by the individual after examining their own pros and cons of independence. Each decision must be based on those contributing factors that are in place at the time the decision is taken.

For example, if there is a no-compete clause with your current employer, you obviously cannot become independent until the clause expires. Another consideration if you want to take over your employer’s business is that you must be asked by the client you manage, in writing to take over as an independent.

The pro-independence reasons are as follows:

  1. You retain the entire fee you collect with the exception of the monies you have to pay for your subcontractors
  2. You need to ensure your client does not want to replace you with another company because your service level dropped
  3. You can provide lower fee service to ensure client happiness
  4. Because you are an independent company you can deduct expenses such as home office or vehicle usage and your take home pay will be higher. But you must remember some of your contributions to the government also increase.
  5. You are tied to the clients you have and you usually cannot afford to fire a client until you are established.
  6. If you properly subcontract your administrative burden, you can take on more clients. 

The cons to independence are as follows:

  1. You cannot take vacation without arranging for suitable back-up coverage
  2. You are on call when the client needs you
  3. You pay both the employer’s and employee’s share of the Canada Pension Plan
  4. You need to arrange for your own medical and dental insurance coverage
  5. You will need to file a more complex tax return. Most likely a corporate return or a professional income return if you do not incorporate..
  6. You need to seek legal advice if you are currently employed and wish to become independent.

Some of the things you will have to undertake include:

  • client billing
  • payroll
  • accounting
  • bank reconciliations
  • budgeting
  • financial monitoring
  • account analysis
  • financial reporting
  • company minutes
  • tax returns
  • custom newsletters
  • annual reports and
  • working with the external auditors.

 If you have decided to become independent, give us a call. We can help with the administrative and back office side, but only after you have received independent legal advice. We can also make you an independent contractor in our service organization providing all the administrative services you possibly need.  Call 1-855-561-4589 for a free no obligation consultation, once you have decided to go independent.

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What Do Condo Property Managers Need In Back Office Support Services?

So, you are a property manager of different condo projects? Has it become really hard for you to manage all the different properties at a time, and are you really in need of help? Then you need a competent back office support service to help you deal with all the hundred and one important tasks that are related to efficient property management in today’s highly competitive market.

Do you know what to look for in your back office support system service? Here are a few things to look out for while hiring a team to offer you comprehensive back office support for sound property management,

Affordable Quality Services

Choose a service company which promises you quality services within a reasonable budget. An experienced company with a team of experienced individuals skilled at managing your finances and accounts, performing system analysis and ensuring precise graphic reporting of all property details, is what you need.

Experienced and Reliable Company       

With years of experience under their belt, you want skilled professionals to take care of all the hassle and make your property management work a smooth job. Make sure to only seek help from a reliable company which has sound references to proclaim its technical prowess and commitment to customer service.

Guaranteed Extensive Service Portfolio

Choose a back office support service company which offers an extensive service portfolio which covers some basic, analytical as well as highly sophisticated professional support services for your property management business.

Select a company which offers services for managing your financial statements, budgets, professional newsletters and monthly variance analysis reports, as well as ensure assistance for tax returns and offer temporary vacation coverage as well.

With a competent team of professionals providing you comprehensive and thorough back office support services, you will be able to effectively manage your entire property asset portfolio with no worries. In fact, while formerly you might have been thinking of selling off some properties to make your portfolio more manageable, with a competent back office support team by your side, you will only be thinking of adding more profitable condo projects to your list of assets

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Hanging Out My Shingle

This could be one of those articles that is dripping with pathos or unabashed advertising. It is neither. My objectives are much simpler than that. I want people to grow and become profitable. This is achieved by learning from past mistakes and from extracting the best business coaches have to offer.

Accountants by and large are boring as heck. In my family tree research I found that on my mothers’ side there were 6 generations of accountants in a row. My father was a chef. So I must resemble my mother more though I love good food. What have I learned from my academic and work experience is that you can always learn something from everyone. From the brightest business-person you may ever encounter to even people you may consider inferior. They all have a different point of view. The more points of view you have, the greater value you receive. Just do not become the perpetual student where you achieve paralysis through analysis. Many a business has gone broke waiting for the tides to change while they were knee deep in the desert.

Business leaders are made not born. I have yet to see a new born baby run a billion dollar company. If you have seen one, please call the Guinness Book of Records. In the meantime as you learn from your peers, mentors and competitors you will recognize that growing your business is not easy. The business relies on your knowledge, other peoples’ knowledge and your clients’ demands.

Clients are the best of our existence. They are the reasons we exist. We are happy to serve them and see them satisfied. I have read many journals teaching us how to fire non-contributing clients and some do deserve to be fired. Others teach us tricks from their past that help us with our future. I hope that my silver hair dyed beautiful brown has gained this experience to allow me to pass it on to you and your business,

As a business leader you need to show action and finesse. Your leadership helps establish your credentials. I hope that by hanging out my shingle and living up to my promises can help you enhance your credentials. Remember, your successes is measured only by your achievements not anyone else. Hanging out my shingle gives me a vehicle to help create my future successes.

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Tips on Why Outsourcing Your Accounting Can Really Help

If you’re ready to hire someone to handle all of your company’s accounting, you’ll have two options available to you. You could certainly hire someone to work on site and handle all of your bookkeeping in an office, but you could also outsource your accounting. The latter actually provides you with some surprising benefits that can help your company grow and succeed.

#1 – Outsourcing Saves Money

Hiring an on-site accountant to work for you costs a lot of money. For instance, you’ll likely pay your accountant based on the types of services provided and the number of hours worked. What’s more, you’ll have to worry about sick leave, the provision of benefits, breaks, and more. An outsourced accountant helps you avoid all of these things, and can also help you save money in other ways. For example, an outsourced accountant has access to new technologies, can provide you with marketing advice, and can even help you with analyses to improve your bottom line.

#2 – It Can Save You Time

If you’re currently handling all of the accounting for your company, then chances are good that you’re feeling the pressure of trying to keep the books and run a business all at the same time. When you choose to outsource an accountant, you can save yourself a tremendous amount of time. Your accountant can handle the books while you focus on other important areas of your business. What’s more an accountant can even help you strategize for the future and monitor your financial progress along the way.

#3 – You Can Analyze Your Competition

An outsourced accountant works with many, many companies, and oftentimes these companies are all within the same industry. This means that your accountant can provide you with valuable insight into how your competitors are doing. Of course, some information is certainly private, but your accountant can still give you plenty of guidance. For example, he or she can help you determine whether your operating costs are within the industry average, whether your markups are too high or low, and even whether you are using your assets wisely.

#4 – Your Outsourced Accountant Can Help You Grow

Business growth is all about optimizing the ways in which you earn and spend money. Because an outsourced accountant has seen books for multiple companies within your industry, he or she can help you identify key areas for growth. This may include everything from suggesting marginal increases in prices to be more in line with your competitors to helping you discern the amount of difference that should exist between your wholesale cost and retail asking price. Even a few pennies difference on a single product can vastly improve your revenue, and an accountant can help you determine where those pennies should come from.

Outsourcing an accountant comes with many benefits. It can save you time and money, for certain. However, the biggest benefits come from an outsourced accountant’s ability to help your company grow with his or her experience within the industry and the things he or she has seen in the past.

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Alternatives to Bankruptcy

Many individuals in the current economy are struggling to make ends meet. Some of you are even considering throwing in the towel and starting again.


Bankruptcy is not the only option. There are many other op[tions including credit proposals in Canada and protection from creditors also known as Chapter 11. Before throwing in the towel tal to your trusted financial advisor and review all your options.

Many individuals and companies are going through reorganization or other right sizing solutions and this may be sufficient. In other cases some outstanding debt must be removed for your company to survive. Consider trying to settle with the debtor for cents on the dollar. In many instances, this will be sufficient, albeit in some instances settlement may not be possible. Other alternatives in your arsenal include seeking a delay in payments until the company or you get back on your feet, debt consolidation, debt management, a massive marketing push to generate business or even a merger with a competitor to combine your strengths.

There are many options. please consider them all  up to and including discussing all available options with your family and your financial advisor. My wife has always said, "I do not care what are problems are, I stands with you regardless, just do not surprise me!" Many relationships are that strong work with your family and advisors and you may be able to avoid the ultimate hit.

Remember bankruptcy is not the only option. Use your advisors wisely. You can start over again even if you have to declare, but most importantly try to avoid it because continuing with a moving enterprise, even if crippled by debt, is far easier than the inertia of starting all over again.

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