How to protect your documents, while creating efficiencies

Audit-Proof your business

Moving your business onto a cloud based system has many benefits; one that often people do not think about, is document retention and safe guarding.  

Canada Revenue Agency (CRA) requires businesses to keep records for up to 6 years. Far too often, expenses are denied because receipts cannot be provided. This can be from many things:

• Credit and debit card receipts become unreadable and illegible overtime
• Risk of damage to files because of flooding or fires
• Invoices simply cannot be located because of improper filing procedures

This can become a very costly problem for business owners. There is also document storage costs and space requirements.

Implementing a cloud based system can help eliminate all these risks. Hubdoc is a cloud based application that I have worked exclusively with. We refer to it as the business's 'virtual filing cabinet'. (https://www.hubdoc.com/). 

Every receipt, invoice and expense gets uploaded onto this platform. Options to upload:

• take a picture with a phone
• scan the document
• email the document

The documents are retained in their original form (so no fading) and available anytime. anywhere. If CRA asks to see certain documents, they are easy to find, and can be quickly compiled and sent. This also helps at the end of the year when you need to provide information to your accountant.

All the documents are sorted by vendor and date. Hubdoc utilizes Optical Character Recognition (OCR) to automatically pull information from the document. The vendor, date, amount and HST are picked up. This has been a huge time saver for companies, manual data entry of expenses has been almost eliminated. The information is then pushed to Quickbooks online (your cloud based accounting platform). A copy of the document also gets added to the accounting transaction, ensuring there is support for every expense claimed. 

Another great feature of this application is automatic document fetching. Almost any vendor that has an online portal can be linked to hubdoc. For instance, online banking. Once the connection is made from Hubdoc, to your bank (by entering your login information) hubdoc will auto-fetch those statements. Bank records and credit card statements are therefore organised and easily available. 

Vendors like Rogers, Telus, Enbridge, Powerstream, Hydro1, ect. can also all be connected. Whenever there is a statement issued from these vendors, hubdoc will automatically bring it into your filing cabinet. As most of these vendors are the same expense type, I set these to auto-publish. This means every time a rogers statement is issued, the amount gets posted into QBO to the account I have designated (internet). The HST gets recorded and the bill date is used. 

Hubdoc is just one of many applications that I recommend to companies when moving to the cloud. Applications like these create efficiencies and improve operations. Ensuring you chose the right applications, to work in conjunction with Quickbooks online is the first step, and an important one. These applications can supercharge your accounting and business needs!

#TheFutureofBusiness

Is your business taking advantage of the latest innovation in accounting?

The accounting industry has not seen many changes over the last 100 years. The last innovation came in the late 1980's when computers began replacing ledger books. Bookkeepers and accountants did away with cramped figures and hands after spending countless hours manually filing out payroll books, sub ledgers, and reconciling accounts. This was the first big disruption and many were apprehensive. For us looking back, implementing the computer in the workplace seems like a no-brainer. Over time it became clear that this technology was saving business owners and business professionals time and money and it became common place. This technology is something we often take for granted.

30 years later, we have the next innovation; cloud technology. This new wave of technology has been around now for a few years now, and early-adopters continue to see the benefits. Just like when computers were being rolled out, many are doubtful and uncertain about this change. In my view, you will either become disrupted or be the disruptor.The technology continues to be improved and every day I see how this is impacting this industry for the better. Businesses are able to spend less time on data entry, and instead focus on growing and improving their company. The cloud has made financial information accessible, anytime, anywhere. The data itself is more accurate and reliable, allowing better business decisions to be made.There are various cloud based applications to be used in conjunction with an accounting system. This is how a company can supercharge business operations. This is refereed to as the cloud eco-system.

Cheques will be no more as electronic payments become the go-to option. Expensive wire transfers and capped EFTs are to be a thing of the past. The technology is here now, to allow for easier, less costly payments, which auto sync with your records. (www.plooto.com)

Payroll technology has also improved, to allow for automatic CRA payments, year end tax slip preparation, direct deposit and employee portals. (www.wagepoint.com)

No more missing, damaged, or unreadable receipts and invoices. No more filing cabinets taking up value floor space. There are applications to store all your financial documents in one place, that link with you accounting records and entries. OCR technology is now being utilized to automatically read and post data. These applications can pick up the date, vendor, amount and HST of a receipt and record that into your system. This brings a huge increase in accuracy and efficiency. (www.hubdoc.com)

The applications I mentioned are the ones I work with on a daily basis in conjunction with Quickbooks online. The apps seamlessly integrate to keep accounting record accurate and up to date. There are many more applications out there that help with; inventory tracking, job-costing, point of sale, financial reporting, ect. There are also niche applications specific for breweries, landscapers, not-for-profits, ect. I work with businesses to properly apply these technologies and utilize them the best way possible.

With any change, comes some resistance. To ensure the best implementation, I assist in the selection of apps that are applicable and review out-of-date procedures. Too often do I see the duplication of tasks and work. Many companies have staff entering accounting data into a system, and then again entering that data somewhere else (usually excel) to be used for operation purposes. Using a cloud accounting eco-system allows for all applicable information to be in one spot, utilized by many. This technology is moving quickly, updates and new applications coming out every month. Artificial intelligence will be implemented into these systems as well as blockchain technology. As more and more companies move into the cloud and benefits realized, this technology will be seen as a 'no-brainer' just as the computer is today.

Wagepoint and the CRA

Are you using Wagepoint currently? If so, make sure you are aware of the following:

If you have intentionally stopped processing payrolls, don't forget to file a nil return with the CRA / Revenu Quebec directly for any months in which source deductions have not been remitted as non-compliance could result in penalties / fines from the government.

An instance where I had to use this, was where a business only had two employees (the shareholders) and simply wanted to skip paying themselves for one month. In this case, we had to ensure to file a nil return with CRA for that month.