Detour Required!

Effective Monday, June 18, 2018, the east bound exit at Carling Avenue & Kirkwood Avenue (Exit # 124) of the Queensway will be closed for construction.  For clients coming to our office from the west end of the city, we suggest taking the exit at Maitland Avenue (Exit #126).  Follow detour signs and turn right onto Maitland Avenue, then right onto Carling Avenue, then right onto Kirkwood Avenue, then right onto Laperriere Avenue and finally right onto Lady Ellen Place.  Clients coming from the east end should not be impacted by the closure.  The Carling Avenue & Kirkwood Avenue exit is scheduled to be closed for 3 – 5 weeks.  We will provide further updates when construction is completed.

Meet Stephanie Smith - Human Resources Manager

We're so proud to have teammates like Stephanie.

She's inspiring for many reasons, but having spent over 10 years striving to provide clients with the highest quality of service really makes Stephanie such a natural fit on our team.

Stephanie is a Certified Human Resources Professional through the Human Resources Professionals Association of Canada. She has completed degrees with the University of Ottawa - L’Université d’Ottawa and Algonquin College, and certificates in Human Resources Management with the Sprott School of Business at Carleton University.

Her warm and open personality make her really easy to talk to, but she also always has great stories about hiking with her rescue pup and all things outdoors.

We're lucky to have Stephanie on the Hendry Warren team!

#MeetTheStaff #OttCity #Accounting #Ottawa #HumanResources

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Women for a Humane Canada

Nancy Nicks is excited to announce she has joined Women for Humane Canada bringing animal welfare to the next level.  She is thrilled to be joining a group that has the leadership, networks and advocacy skills to bring animal welfare to the next level in Canada.

#animalwelfare #humanecanada

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Clean Up Your Cash Flow: Basic Accounting Checklist for Small Business

In any business cash flow is important - this is especially true for small businesses. Your cash flow could be the difference between a bright future and shutting the lights off for good. That’s why it is crucial that any small business keeps track of their cash flow to understand the overall health of business and where improvements can be made.

To help, we’ve created a basic accounting checklist for your small business to use. Sticking to a plan can keep operations running smoothly and your cash flow positive.

1.       Record All Transactions

One of the biggest mistakes small businesses make is not recording every transaction that comes through the door. As a business you need to be diligent here - record all transactions including:

-          paying vendors

-          receiving cash from your customers

-          billing customers for goods sold

If you’re finding it difficult to keep up because you are entering transactions manually, consider adopting an accounting software or looking for an accounting firm to help.

2.       Check Cash Position Daily

Cash is the lifeblood of any business and crucial for small businesses. You don’t want to find yourself checking your cash flow statement to find yourself close to the edge. Make it a habit to check your cash position at the beginning of every day. This will help you better predict your overall position based on the money you receive and the expenses you incur during a month.

3.       Organize Your Receipts

 Keep track of your receipts in an organized manner to keep your cash flow in full view. These include organizing and tracking all cash receipts, payments, and invoices sent. As these receipts come in, make sure to organize them into a chosen filing system.

We recommend having a payroll file, a bank statement file, and a vendor file for your receipts. You can organize these by payroll date, by month, and alphabetically.

 4.       Send Invoices with clear Payment Terms

The biggest risk to your business are late or unpaid invoices. In these situations, you need to stay on top of things and make sure payment is timely. A good practice is start with your largest invoices first – ensure you politely follow up in a consistent manner. This will be crucial to keeping your cash flow positive.

 5.       Compare Month-End Balance with Previous Month

 Assess how well you’ve done managing your assets and liabilities by comparing your month-end balance with a previous period. When doing this, look for numbers that have significantly increased or decreased and analyze why this might be.

Are your accounts receivable way up? Why? Are your customers taking longer to pay?

Cleaning up your cash flow process is essential to long-term business success. This means having a clear and full view of your business’ cash flow at any given time. By building good habits and using the strategies mentioned above, you will be able to optimize your cash flow and keep your small business running smoothly.

U.S. Repatriation Tax and the Impact for U.S. Citizens in Canada

As part of Trump’s tax reform plan that was introduced this past December, there was included a provision that was intended to force large multi-national companies to bring home offshore funds to be reinvested within the U.S..  The unintended consequence is that U.S. citizens resident in Canada with a controlling interest in a Canadian corporation are also subjected to the tax measures.  Generally, the tax is applied to post-1986 accumulated earnings & profits (generally retained earnings) accumulated within the corporation with different rates ranging from 8% - 15.5% applying depending on the type of assets held.  This one-time repatriation tax could impact the personal tax filings of the individual tax payer in either the 2017 or 2018 taxation year depending on the fiscal year end of the corporation and could be significant.   An election is available to spread the resultant tax balance over an 8 year period.  A key date for taxpayers impacted by these measures is June 15, 2018, which is the last day available to make an election to pay the related tax balance over 8 years if an extension of the return is not obtained.  Where the U.S. filing deadline has been extended, the election to spread the tax burden would be due October 15, 2018.  Below is a link which provides more information on the repatriation tax. 

http://www.cbc.ca/news/politics/transition-tax-trump-corporations-1.4639020

If you believe you may be impacted by these measures, please contact us as soon as possible.  Although Hendry Warren does not provide U.S. tax advice, we do have affiliations with U.S. CPA firms with whom we work to ensure that taxes are minimized on both sides of the border, for our clients.

Mixing & Mingling with GenNEXT Ottawa

Hendry Warren did some mixing and mingling last night at United Way/Centraide Ottawa's GenNext Event hosted at the new space for the School of Photographic Arts: Ottawa.  This event helps promote one of United Way's Giving Circles for Path to Pride in support of the LGBTQ+ community. Great food, great drinks and even better company! Looking forward to the next event!

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Accountants by Day, Hockey Champs by Night

"A team isn't a bunch of kids out to win.  A team is something you belong to, something you feel, something you have to earn."  

While Coach Gordon Bombay from the Mighty Ducks  may have been on to something, it sure does feel good to win too!  On Monday, April 30th, the HW Wreckoncilers took a break from their post-tax season celebrations to win the Carleton University Division 11 championship.

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Annual Loaves and Fishes Gala

Hendry Warren staff attended the annual Loaves and Fishes Gala at the Infinity Centre.  The mission of the Loaves and Fishes Fund of Ottawa Carleton is to establish and maintain free daily meal services to disadvantaged people in our community. The gala included a live auction where two of our partners enjoyed a friendly bidding competition for an electric guitar signed by Colin James. Dan Warren, always the gentleman, allowed Nancy Nicks to cast the winning bid.

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A Sweet Surprise

There is something about the sight of an ice cream truck, or a portable gelato push-cart in this case, that makes even grown-up accountants get giddy.  The staff of Hendry Warren LLP and Transactions Inc. got a pretty sweet surprise on Friday when Stella Luna's Vintage Gelato Push-Cart set up shop in our parking lot to serve an assortment of delicious gelato treats.  Thank you again to Stella Luna for a welcome break from personal tax season!

Preparing Information for your Personal Taxes

Our goal is to provide updates on topical accounting and tax issues. Information contained in this newsletter is not meant to be a comprehensive summary of the issues raised. Rather, we wish to bring what we believe to be important issues to the attention of our valued clients and readers. We would be pleased to discuss any questions that you, the reader, might have in greater detail.

Preparing information for your income taxes can be confusing and frustrating. What is a deduction? What is a tax credit? Are you eligible to benefit from these programs? Am I required to report this? With each Federal and Ontario annual budget, reporting requirements, benefits and credits, and programs are created, modified, and eliminated. This newsletter provides a summary of changes in 2017, as well as common areas of common confusion or programs of which you may not be aware.  

So long! Eliminated Credits in 2017

In 2017 and future years, the “Children’s Fitness Tax Credit” and the “Children’s Arts Amount” no longer exist.  Don’t fret about finding and collecting those receipts!

The Public Transit Tax Credit is being eliminated after June 2017. You will be able to claim a non-refundable tax credit for the cost of eligible transit passes that are for the use of public transit services for the period January 1, 2017 to June 30, 2017. Transit costs incurred after June 30, 2017 are no longer eligible. For annual passes, the credit will be prorated based on the 6 months that were eligible in 2017. Good news for seniors in Ontario! The Ontario government introduced the Ontario Seniors’ Public Transit Tax Credit on July 1, 2017. If you are 65 years or older as of January 1, 2017 and lived in Ontario on December 31, 2017, you can claim a refundable credit for transit costs incurred after July 1, 2017.

The Ontario government has eliminated the Healthy Homes Renovation Tax Credit for 2017 and future years. 

Sorry – these expenses are not eligible!

While buying lottery tickets for a charity fundraiser may be a great way to support your favourite cause, unfortunately, the purchase of these lottery tickets does not qualify as a charitable donation. They cannot be claimed on your personal tax return.

 Elective cosmetic procedures may not qualify for the Medical Expense Tax Credit. Common procedures include augmentations, teeth whitening, and filler injections. It is a question of fact whether a particular service or procedure was provided purely for cosmetic purposes, and the onus is on the individual claiming the credit to substantiate that a particular expense is not subject to this provision. It should be noted that procedures that would generally be considered to have a medical or reconstructive purpose include those that would ameliorate a deformity arising from a congenital abnormality, a personal injury resulting from an accident or trauma, or a disfiguring disease. If you aren’t sure, we can help.

Are you eligible? Don’t miss out!

The Canada Tax Benefit is a payment for eligible parents with children under the age of 18. Based on your family net income, you may qualify. In order to apply, you and your spouse or common-law partner must file your income tax return for 2017. Payments will be issued starting July 2018. Great news! This benefit is tax-free. 

The Disability Tax Credit (“DTC”) is a non-refundable tax credit that helps people with disabilities or their supporting person reduce the amount of income tax they may have to pay. The disability amount may be claimed once the person with a disability is eligible for the DTC. In order to apply, have your physician complete form T2201 – Disability Tax Credit Certificate (Link: https://www.canada.ca/content/dam/cra-arc/migration/cra-arc/E/pbg/tf/t2201/t2201-16e.pdf) and send the application to the Canada Revenue Agency. The DTC provides the ability to claim attendant care and nursing home costs, and other tax benefits such as Registered Disability Savings Plan (“RDSP”) and Qualified Disability Trust (“QDT”) eligibility.

The new 2017 Canada Caregiver Credit will replace the previous Caregiver Credit, Infirm Dependant and Family Caregiver Tax Credit. If you incurred expenses related to the care of a dependant relative, you may be eligible for this non-refundable credit, up to a total of $6,883 of expenses. It should be noted, that any income earned by the dependant in that tax year will reduce the credit.

If you or your spouse or common-partner acquired a home in 2017 and did not live in a home owned by you or your spouse or common-law partner in the preceding four years, you may be eligible for the First-Time Home Buyers’ Tax Credit. This credit is claimed on your personal tax return and could be worth up to $750!

Don’t forget to report!

If you own foreign property with a cost of more than $100,000 you may have to file a T1135 – Foreign Income Verification Statement with your personal tax return.  Foreign personal-use property, such as a vacation home that is not rented, are excluded from these reporting requirements. Some examples of property that would have to be reported are shares of foreign corporations (held outside of registered accounts such as TFSA or RRSP), foreign rental properties or funds held at foreign banks. If you aren’t sure whether your foreign property needs to be reported, contact our office.

If you paid or received child support or spousal support in 2017, you will need to report this on your income tax return. These rules can be complicated. Speak with your tax advisor to make sure you don’t miss an income inclusion or eligible deduction on your personal tax return. 

For more information, please feel free to contact our office. Keep an eye on our website or follow us on Linkedin for other tips and information throughout personal tax season.

Congratulations to all the West Ottawa Business Excellence Award Recipients!

While we didn't take home the hardware last night, we were inspired by all the wonderful entrepreneurs and businesspeople in attendance at the gala last night, and send our heartfelt congratulations to all the recipients.

In keeping with the spirit of the evening, our newest partner, Todd Hamilton, has a message for our leadership team that we would like to share.

I feel we have something very special at HW.  Each of you as leaders in the firm bring it with you each day.  It is a desire to help someone achieve more.  Whether that is a client, someone in our community, a peer, or an up and coming professional in our firm.  I see it everywhere.  It's just an awesome place to practice and grow as a professional.  I watch us grow together every day.  It is a very exciting time!
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West Ottawa Business Excellence Awards 2018 Finalists

The West Ottawa Board of Trade is one of the key business associations serving West Ottawa, and the Hendry Warren team is absolutely thrilled to have been named a finalist in the category of “Professional Services” for the West Ottawa Business Excellence Awards. The Awards Gala is tomorrow night and we are excited to be attending along with over 300 businesses and community leaders. Stay tuned for the results, and in the meantime, let’s celebrate!

Fraud and the CRA - A Friendly Reminder

There are new scams and types of fraud being developed every day.  Particular scams we have witnessed in the past are email phishing scams, as well as fraudulent phone calls.  More recently, we have even seen fraudulent letters that appear to be from the CRA.  However, a closer look at these letters reveals incorrect CRA contact information such as postal codes and phone numbers.

Heading into tax season it is important to remain vigilant when receiving correspondence from the CRA.  The CRA will not request SIN numbers, credit card or bank account numbers, addresses, or passport information.  We have provided a link below to the CRA’s website with helpful topics such as; knowing how to recognize a scam, examples of fraudulent communications and how to protect yourself.

Still not sure?  Please feel free to contact us and we would be happy to have a look at the correspondence and provide our opinion.

https://www.canada.ca/en/revenue-agency/corporate/security/protect-yourself-against-fraud.html

2018 Free Tax Clinic

On March 15th and 20th, Hendry Warren LLP gave back to the community in the best way they know how - by offering free personal tax services at the CPA Tax Clinics!

The CPA Tax Clinics are a free service run by volunteers from all levels of CPA firms and is offered to seniors and low-income individuals.  Hendry Warren LLP has been a proud volunteer at the clinics for many years and was happy to have had the opportunity to participate in two clinics again this year.

This year was another great success with over 45 returns prepared over the two nights at the Glebe Community Centre and Hampton Court. 

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