Wednesday, 4 October 2017

Cloud Accounting

The traditional system of accounting involved software installed on a desktop or laptop with little to no remote access or integration. The new trend is a shift away from the one station operation to an online portal that is accessible from anywhere. The internet-based application provides vital information from virtually anywhere and can be integrated with various modules such as payroll, invoicing and budgeting. Typical features of these new systems include:

  1. Integration with financial accounts – information from your bank accounts can be imported automatically without the burden of manual input or transfer.
  2. Quick invoicing – allows the user to prepare, email the invoice, accept online payment and update the system once payment is received.
  3. Expense tracking – importing banking information, credit card transactions or even photos of the bill will update the appropriate records and budgets to reflect the up to date figures.
  4. Collaboration – aside from up to the minute bookkeeping, your accountant will be able to access your records at any time. Advice in a timely manner with reliable and current information would add substantial value for decisions that have to be made in a shorter span of time.
  5. Security and updates – the information is kept remotely and thus is not subject to the power outage or any other event that could affect the local workstation. Because the software is hosted online, it can be updated instantaneously for any corrections or rate adjustments.

There are some drawbacks to the system as well, such as reliance on the third party provider to maintain your records. Depending on the provider, the data could be stored outside of the country and subject to foreign laws with regards to security and privacy. Another issue is the ability to access the information. The data is hosted online and therefore the Internet connection has to be of sufficient speed and reliability to ensure that the application is used smoothly. There is definitely some benefits to using cloud-based accounting however you have to ensure that the setup will meet your needs adequately.

Friday, 11 August 2017

No-name Voluntary Disclosure

One of the ways for a taxpayer to become compliant with something that was amiss in the prior period(s) is the voluntary disclosure program. It allows the taxpayer to file the additional documentation required without the application of penalties. The tax liability and interest will still apply however potentially onerous penalties are avoided. The voluntary disclosure is an all-in kind of program where the taxpayer discloses the information and leaves it up to the Minister’s discretion to waive the penalties.

Common situations when a voluntary disclosure may be required:
-Failing to file T1135 form to disclose foreign investments over $100,000
-Failing to report a capital gain on sale of investments or real estate
-Failing to report income from offshore investments

What happens if the submission is not eligible?

The taxpayer handed over the documentation to assess the additional tax and for whatever reason is not eligible for relief. In that case, the taxpayer has handed over the loaded gun to the agency in whose capacity it is to apply tax, interest and penalties as well as begin collection efforts upon completion of the assessment. When applying under this program the taxpayer either has to be really certain that he or she qualifies or they could pursue a no-name disclosure.

A no-name disclosure does not specifically identify the taxpayer but still identifies the situation. It is basically a question asked of the Minister “if someone were to be in this situation and provided this documentation, would they be eligible to apply for the program”. The response would be limited to the facts disclosed. If there were additional information that was not provided in the no-name disclosure then the Minister is not bound by its original answer and could change its decision. There is also a time limit (90 days from the day of the mailing of the response) to submit the full disclosure if the taxpayer wishes to rely on the response provided. There are some facts required to be identified about the taxpayer so that if the voluntary disclosure is pursued, the response to the no-name disclosure could be matched with the subsequent submission of the full disclosure.

Overall a no-name disclosure is a good way to test the waters to ensure that once all of the information is provided, the taxpayer is eligible for the waiver of penalties.

Monday, 2 January 2017

Happy New Year!

Welcome to McIntyre and Associates blog
Drop by Our Google Maps page and see where we are located.
Leave us a comment while you are there.
McIntyre and Associates Professional Corporation
200 - 900 Morrison Drive
Ottawa, ON
K2H 8K7

Tuesday, 23 August 2016

That Time Year Again

The staff here at McIntyre & Associates wants to wish everyone a safe and happy back-to-school season.
McIntyre & Associates Professional Corporation
200 - 900 Morrison Drive
Ottawa, ON K2H 8K7
General Enquiries: 613-726-7788
Fax: 613-729-4477

Friday, 5 August 2016

Summer Newsletter

Inside this issue:
  • Tax free is not what it used to be
  • Summer hours
  • CRA's Prescribed Interest Rates
As always you will need a PDF viewer to see the newsletter, you can view it by clicking this link: McIntyre and Associates Summer Newsletter

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