Category: Insights

HEALTH AND SAFETY

Bad posture and overuse of smartphones and other devices can cause unexpected health problems.

A recent British study of smartphone use showed that young adults checked their smartphones 85 times a day and used them for a total of five hours of use per day. The long-term effects of such constant smartphone use are not yet known but, if current studies and reports by the medical profession are any indication of the future, it would be advisable for all users to consider the impact smartphones and similar devices can have on their health.

In the Short Term

Text neck: a neck strain resulting from hunching over smartphones, tablets, or laptops for prolonged periods. Stress on the neck and upper back muscles causes pain because the body is subjected to an unnatural position for extended periods of time.

Computer vision syndrome (CVS): eye strain resulting from constant staring at small text or from scrolling through articles, messages or tweets. Common symptoms are dry eyes, blurred vision, headaches, and dizziness.

Phantom pocket vibration syndrome (“ringxiety”): the belief that your smartphone is vibrating when it is not. Studies show that some individuals may experience increased anxiety levels when they go an extended period without receiving a notification.

Nomophobia: (“no-mobile-phone-phobia”) is a term coined to describe the anxiety of individuals to be without a smartphone. Sufferers obsessively check to ensure the smartphone is present and constantly worry about misplacing it.

A recent study in the U.K. determined that 66% of the user population may suffer from this “ailment.” Symptoms include increased anxiety, which can manifest as a variety of physical symptoms including headaches, intestinal troubles, and muscle tension.

In addition to the more obvious outward physical pains and strains, there might even be a hidden tax on your health.

The Long Game

Medical specialists have determined that the poor posture caused, in part, by use of smartphones may cause excessive wear on the cervical spine (the neck) which can result in permanent degenerative changes including arthritis. The neck is designed to support the weight of your head (10 to 12 pounds) in an upright posture. Bending your head forward to text or read can place up to 60 pounds of stress on your neck muscles. This excess strain on your cervical spine over the years can increase the risk of cervical degeneration.

In addition to the more obvious outward physical pains and strains, there might even be a hidden tax on your health; when individuals use a smartphone, they tend to slump forward and curl their shoulders in toward their chest, thus restricting lung capacity. This, in turn, reduces oxygen intake and forces the heart to work harder to get oxygen to the brain. A lifetime of poor posture can have a negative impact on your cardiovascular health.

Preventing Injury

The best way to ensure these potential symptoms do not affect you is to stop using these devices completely. Since this is not possible, given our increasing dependence on technology, experts suggest the following may relieve symptoms and prevent long-term problems:

• Reduce eye strain by using larger fonts. Hold the device at least 16 inches from your face. Look up and away from the screen frequently. Scroll by page and not by line. Blink to ensure your eyes stay moist.
• During your next visit to a physician, physiotherapist, or chiropractor, ask about neck exercises you can do during work to help alleviate neck strain.
• If your wrists and hands feel sore or weak, try flexing your wrists or pushing down on a flat surface to stretch your fingers. If pain persists, talk to your doctor or physiotherapist.
• Improve your posture by evaluating the ergonomic setup of your work or home office. You can find an online self-assessment tool from the Ontario Ministry of Labour at: www.labour.gov.on.ca/english/hs/pubs/comp_erg
• Take regular and frequent stretch breaks (every 15 minutes or so), following the stretching guidelines provided by your doctor or physiotherapist. If you are prone to forget, set a reminder on your phone, computer or personal fitness tracker.
• If you have any of the symptoms associated with nomophobia or phantom pocket vibration, consider placing your device in a location more difficult to access when you’re not using it and scheduling specific times to check and respond to messages. For more serious symptoms, consider seeking professional counselling.

Be Tech-Strain Aware

Communication devices have provided benefits beyond our wildest expectations. While those benefits cannot be denied, they have brought with them other unforeseen issues that may have a long-term impact on personal health and welfare. Recognition of these issues should lead management and staff to work to prevent future personal health issues and to maintain the productivity of the entire workforce.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.
BUSINESS MATTERS is prepared bimonthly by the Chartered Professional Accountants of Canada for the clients of its members.
Richard Fulcher, CPA, CA – Author; Patricia Adamson, M.A., M.I.St. – CPA Canada Editor.
Contact us: patricia@adamsonwriters.ca

TECHNOLOGY

Good low-cost printing is now available for small businesses.

Even though the amount of printing being done today is declining because so much data can be stored for instant retrieval on hard drives or the Cloud, every small business should still have a printer. Today’s multi-function printer (MFP) provides an owner-managed office with most of the capabilities offered by a printing company but at a starting price of about $1,300 for colour and between $500 and $600 for black and white.

If you are considering replacing the old printer or cancelling your lease contract, consider the features now offered on printers that support both Mac and Windows operating systems and are not much bigger than a microwave oven.

Features

Most MFPs have the following features:

• colour and black and white capability
• ability to print on various media of varying size and weight as well as labels and vinyl
• LCD touch screens
• ability to print from a USB and to scan to the USB
• ability to scan and send to a personal computer
• ability to print forms stored on a website
• ability to scan on a flatbed scanner
• automatic feeders allowing scanning of multiple documents as well as duplexing pages to cut back on paper costs
• preview ability on the control panel allowing you to print only the pages needed
• ability to join your wireless network (WiFi) and print right from your smartphone or tablet. (You may need to purchase this option separately.)
• Ethernet ready (Check to be sure in case there are wireless communication issues within your environment.)
• memory in off-the-shelf units: 512 MB or 1 GB, with expansion to 3 GB or more (more memory allows the printer to handle larger or more complex documents, such as images)
• duty cycles up to 150,000 pages per month and eliminating the replacement of costly imaging components
• rated to print from a low of 700 pages a month to 25,000 pages a month
• printing speed for most printers in the range of 40 ppm in colour mode and 50 ppm or greater for mono
• starting to print within five seconds if “on” and within 20 seconds if “sleeping”
• resolution to 2400×1200 dpi if finer detail or richer colour saturation is required.

A monthly warranty can cost as little as popcorn and a movie.

Low-Priced Warranty Package

Up to now, small businesses could never afford a printer that offered all these features. Most small businesses leased a printer and paid a per-page charge for warranty and service. State-of-the-art MFPs from reputable manufacturers carry at least a one-year guarantee and offer extended onsite warranty packages from two to five years for a monthly cost equivalent of popcorn and a movie.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.
BUSINESS MATTERS is prepared bimonthly by the Chartered Professional Accountants of Canada for the clients of its members.
Richard Fulcher, CPA, CA – Author; Patricia Adamson, M.A., M.I.St. – CPA Canada Editor.
Contact us: patricia@adamsonwriters.ca

TAXATION

The new Liberal government has proposed a few minor changes to personal income taxes for 2016 and beyond.

The election of a new government in Ottawa is often accompanied by changes to the way income is taxed. The last federal election was no exception. The changes announced in the March 2016 budget that will impact many taxpayers are as follows:

Family Tax Cut

Spousal income splitting was eliminated. In the past, one spouse or common-law partner could transfer as much as $50,000 of taxable income to the other to save up to $2,000 in income taxes. This option will no longer be available.

Child Tax Benefit

Taxpayers with children are familiar with the Canada Child Benefit (CCB) tax-free monthly payment and the taxable Universal Child Care Benefit (UCCB) that were designed to assist parents with the cost of raising children under the age of 18.

The new budget proposes that the CCB will provide as much as $6,400 per child under the age of six and $5,400 for children from six to 17. As can be expected, the benefits will not apply equally to all income categories. Levels of payout will be adjusted for those whose family income is between $30,000 and $65,000 and those who earn in excess of $65,000. If family income exceeds $200,000, there will be no benefits.

Indications are that the CCB will not be taxable and will not be included in certain federal income-test programs such as the Registered Disability Savings Program (RDSP). The new structure will be based upon the adjusted net family income for the 2015 tax year. Because the amount of the benefit will be tied to family income, benefits will be reduced as income rises.

Labour-Sponsored Venture Capital

Up to now, the federal government has permitted the creation of labour-sponsored venture capital corporations (LSVCCs) at both the federal and provincial levels. Prior to 2015, individuals purchasing $5,000 worth of shares in such corporations each year received a 15% federal tax credit. The credit was reduced to 10% in 2015. The federal government proposes to restore the credit to 15% for provincially registered LSVCCs for 2016 and thereafter but will reduce the credit to 5% for federally sponsored LSVCCs in 2016, then eliminate it. This is part of the federal government’s plan to close the federal part of the program altogether.

Education

Post-secondary

Individuals attending post-secondary educational institutions could previously claim tuition fees plus an education and textbook amount based upon the number of part-time or full-time months of attendance at a qualified institution. For 2016, the federal education and textbook amounts will be eliminated. The tuition fee amount will remain intact.

Teacher tax benefit

There are teachers and early childhood educators who may spend their own money on classroom supplies. To offset these out-of-pocket expenses, a new Teacher and Early Childhood Educator School Supply Tax Benefit will be introduced. A licensed and certified teacher can now purchase up to $1,000 worth of school supplies each year and receive a tax credit of 15% that should provide a tax savings of up to $150 each year.

Tax Free Savings Account

The tax free savings account will be reduced from $10,000 per annum to $5,500 for the 2016 tax year. In that the 2015 tax budget increased the former limit of $5,500 to $10,000, it is assumed the taxpayer will not be penalized for taking advantage of the $10,000 limit when tax planning in the start-up months before the March 2015 budget.

Home Buyers’ Plan

The Home Buyers’ Plan (HBP) allows first-time home buyers to withdraw up to $25,000 from their RRSP to purchase or build a home without having to pay tax on the withdrawal. The current plan required the amount to be repaid over a 15 year period. The government will now allow taxpayers faced with significant life changes (e.g., job relocation, death of a spouse, marital breakup or the requirement to house an elderly family member) to borrow from the RRSP without tax penalty.

Employer EI premiums are waived for young hires.

EI Break

The budget proposes to waive the Employment Insurance (EI) premium for 12 months for companies that hire individuals between the ages of 18 to 24 if they are hired into a permanent position in the years 2015 to 2018 inclusive. A minor reduction of the EI rate after the first year of hiring is contemplated as well.

Small Business

The previous government planned to reduce the small business tax rate from 11% in 2015 to 9% by 2019. The 2016 reduction to 10.5% is frozen with no further reductions planned.

67 to 65

The former Conservative government raised the age of eligibility to collect Old Age Security (OAS) from 65 to 67 starting in 2023. The new rules of the Liberal government will return the age of eligibility to 65. This age drop applies equally to the Guaranteed Income Supplement. Both programs will be adjusted to a new Seniors Price Index to reflect the actual rising cost of goods and services.

Personal Tax

Tax cuts are always welcome. If all goes as planned, middle income individuals (i.e., those earning between $45,283 and $90,563 per annum) will have their tax bracket lowered. This table provides the tax bracket as well as a comparison of 2015 and anticipated 2016 federal tax rates.

Automobiles

The automobile allowance rate for the 2016 taxation year is 54 cents per kilometre for the first 5,000 kilometres driven, and 48 cents per kilometre after that. Add four cents per kilometre in the Northwest Territories, Yukon, and Nunavut. This is a reduction of one cent per kilometre.

The following amounts are unchanged:

• capital cost for vehicles: $30,000 plus applicable taxes
• leasing rate for vehicles: $800 per month plus applicable taxes
• monthly interest deduction: $300 per month
• taxable benefits associated with employer-owned or employer-leased vehicle available to employees.

The personal portion of automobile operating expenses paid by employers for 2016 is reduced from 27 to 26 cents/kilometre. If the taxpayer is selling or leasing vehicles as a mainstay of employment, the rate will be reduced to 23 cents/kilometre. These personal portions are taxable.

Little Changed in 2016

Changes to the tax system for individuals will not have a significant impact on the take-home pay for the average taxpayer and will not, for most, change the information required for preparation of the 2016 personal income tax returns.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.
BUSINESS MATTERS is prepared bimonthly by the Chartered Professional Accountants of Canada for the clients of its members.
Richard Fulcher, CPA, CA – Author; Patricia Adamson, M.A., M.I.St. – CPA Canada Editor.
Contact us: patricia@adamsonwriters.ca

TECHNOLOGY

These apps may help you optimize your work when you are mobile.

TeamViewer

Two similar and occasionally underrated tools for business are remote control of other devices and screen sharing. Screen sharing is a critical tool, not just for one-way meetings and presentations, but also for interactive collaboration among colleagues in different locations. Remote control is useful not only for troubleshooting and technical support, but also as a convenient way of using multiple separate computers or devices from a single workstation, regardless of where the computers are physically located.

In the screen-sharing camp, tools such as GotoMeeting, join.me and Skype for Business are also popular. For remote control, in addition to built-in or bundled options such as Windows Remote Desktop, Chrome Remote Desktop, and Mac OS X Screen Sharing, more feature-rich or cross-platform tools are also available, such as various VNC-based tools like RealVNC.

TeamViewer includes both functions, and supports a wide range of platforms, including Windows, Mac OS X, Linux and Chrome OS on the desktop, and Android, iOS, Windows and BlackBerry on mobile. This app is free for non-commercial use such as family and friends; one-time commercial licences start at CDN$759.

Scanner by JotNot Pro

Ever want to make a copy of a client quote or a sales document while at a remote location but had no photocopier or scanner with you? For simple tasks, the built-in camera app and email might be sufficient to snap a picture and send it by email. A dedicated scanning app, such as Scanner by JotNot Pro, may offer features like cropping and image processing to tidy up the picture and then save it as a PDF or JPEG.

Once the scan is complete you can send it off by email or into iCloud, Dropbox or a number of other storage facilities. The software allows you to password-protect files, sort data by name or date or rename or delete files on your smartphone.

By importing a Word or PDF document into your smartphone and entering the fax number, a fax can be sent to any U.S. or Canadian fax number by simply tapping the Send icon.

Consider a video conferencing app for your business.

Video Conferencing

Video and voice conferencing are useful business tools to connect colleagues, vendors and clients. Skype allows for video and audio communication and is widely available on nearly any platform including desktop operating systems, mobile devices, and even Xbox consoles.

Skype for Business (formerly Lync), however, is an internal business communications tool, generally for medium or large-sized companies, that now comes bundled with Microsoft Office 365.

Many other video conferencing apps can be considered for your business. Apple’s Facetime, included for free on Apple’s devices, may be suitable if most of the people you work with primarily use iOS or a Mac. Unfortunately, Facetime is not cross-platform compatible. Google Hangouts is a free Google platform alternative which, in addition to Android, is also available for iOS and most computers via a web browser.

Margin Calculator

Although fully functioning spreadsheet apps such as Microsoft Excel, Apple Numbers or Google Sheets can handle more than just margins and taxes. For quick answers to relatively simple problems, an app such as iMargin (iOS), or Margin Markup Calculator (Android) might suit your purpose.

The software instantly calculates the markup or margin to keep a reasonable profit when negotiating the sale. If you want to determine a markup based on a selling price, enter the cost and the selling price, and the markup amount and percentage are displayed. Selling to a foreign entity? Some apps offer an upgrade for an additional fee to include a currency converter, although there is always the free option to convert currency via a separate app.

AirDroid

Big fingers, little keyboard, make typing, dragging or accessing items on your smartphone a productivity nightmare. Enter AirDroid 3, an app that allows access to everything on your Android phone through your Windows or Mac computer or web browser.

The free app can be enhanced with other features such as unlimited file transfer by remote transfer with one GB for Windows or Mac and 100 MB with Web. You also have the ability to connect six devices to the software using one AirDroid account. The app also allows you to see through the lens of your camera remotely and will take pictures of individuals attempting to unlock your smartphone. And it also permits dialing phone numbers remotely from the Web and talking on the phone. The premium app costs US$1.99 per month or US$19.99 annually.

If you use an iOS device and a Mac, there is no need for an app like AirDroid since many of those capabilities are already included for free, such as Handoff, AirDrop, AirPlay and iCloud.

Android Device Manager/Find my iPhone

Anyone who has lost their wallet or handbag knows the gut-wrenching panic that sets in knowing the problems that arise with lost identification. Magnify that 100 times when your smartphone, with all client contacts, emails, and calendar data is lost. Both Android Device Manager (for Android devices) and Find my iPhone (for iOS devices) are a free-platform solution. For peace of mind, you should install this app on your smartphone as soon as you get it. Both apps allow you to locate the devices tied to your Google or Apple account, respectively. For a selected device, you can lock the screen (requiring a password), display a message and, if necessary, erase all data on the phone. Both services allow tracking via the app, which is useful if you have another device on the same platform, such as from a tablet; both can also be accessed on a PC via a website.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.
BUSINESS MATTERS is prepared bimonthly by the Chartered Professional Accountants of Canada for the clients of its members.
Richard Fulcher, CPA, CA – Author; Patricia Adamson, M.A., M.I.St. – CPA Canada Editor.
Contact us: patricia@adamsonwriters.ca

MANAGEMENT

Improved employee literacy is essential to meet the challenges of changing markets.

Literacy

Literacy: “The ability to understand and employ printed information in daily activities, at home, at work and in the community — to achieve one’s goals and to develop one’s knowledge and potential” (Definition provided by the International Adult Literacy and Skills Survey)

We live in a country where we take literacy for granted. After all, we spend millions on our education system and pride ourselves in having some of the best universities in the world.

And yet, 42% of Canadian adults between the ages of 16 and 65 have low literacy skills. What is considered literacy? Studies focus on three categories:

• Prose literacy: the ability to understand and use information from texts such as editorials, news stories, poems, and fiction.
• Document literacy: the ability to locate and use information from documents such as job applications, payroll forms, transportation schedules, maps, tables, and graphs.
• Quantitative literacy: the ability to perform arithmetic functions such as balancing a chequebook, calculating a tip, or completing an order form.

Employers may not realize the negative impact that low literacy skills have on their bottom line. Issues that accompany low literacy include:

• inability to understand safety rules
• inability to interpret and explain work-related issues to fellow employees or those they are training, thereby lowering the standards of excellence throughout the business
• inability to problem solve with reference to manuals, government documents, schematics, graphs, etc.
• increased in-house training costs to produce goods and services and carry out corporate policy
• lost opportunities to promote individuals with skills but who cannot meet established deadlines, work within budget, or understand quality assurance guidelines
• risk of accidents or errors when individuals cannot calculate simple maximum weight or height capacities of equipment
• lost productivity when employees cannot adapt to new instructions
• lost revenue when employees make errors in cost calculations

Essential Skills

When the Conference Board of Canada asked the question “Is Canada’s workforce sufficiently skilled?” in a June 2014 document, the answer was:
No. Given that Canada is a leader in post-secondary educational attainment, one might reasonably expect that the country would also be a leader in adult skills. Yet Canada and most provinces do relatively poorly on adult literacy, numeracy and problem-solving skills, earning mainly “C” and “D” grades.

To improve on these standings, Human Resources and Social Development Canada has identified nine essential skills needed to improve workplace literacy:

• reading
• document use (understand electronic and paper formats)
• writing
• numeracy
• oral communication
• thinking
• digital technology
• working with others
• continuous learning (ability to increase knowledge and adapt to change)

The Canadian workplace is experiencing a shortage of skilled labour as older, experienced persons retire. To fill the gap, employers are required to hire younger, less experienced individuals and immigrants.

Technically skilled workers may not be promoted because they lack literacy skills.

Younger employees may have advanced entry skills in some of the aforementioned attributes (e.g., continuous learning and computer use) but lose opportunities for promotion because they lack skills in communication, numeracy or writing.

Immigrants certainly have job skills, but the inability to use either official languages creates a learning problem in the workplace.

Future Success

If Canadian businesses want to succeed, management must examine current operations and imagine what skills will be needed five to 10 years down the road. Because changing markets will require highly literate employees, more time and money will have to be spent within the organization to increase employee competence.

To make this happen, employers will need to identify the literacy levels of current employees and then be prepared to invest more time and money on organizational training. Such training should not only reinforce such basic skills as reading, writing and arithmetic, but also encourage development of the other essential skills that promising employees may lack.

Such a program will mean that businesses should seek outside help to assess the literacy needs of all employees, seek assistance with sourcing appropriate programs, hire knowledgeable experts, and work up a budget and schedule training as a necessary part of the workplace model.

Long-Term Benefits

The end result of improving literacy skills will be less time lost because of accidents, fewer insurance and workplace safety claims, improved product quality and greater productivity. Both employees and employers should reap the rewards and benefits

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.
BUSINESS MATTERS is prepared bimonthly by the Chartered Professional Accountants of Canada for the clients of its members.
Richard Fulcher, CPA, CA – Author; Patricia Adamson, M.A., M.I.St. – CPA Canada Editor.
Contact us: patricia@adamsonwriters.ca

MANAGEMENT

Simple precautions will protect your personal and corporate information if natural disaster strikes.

The fires in Alberta show how quickly natural catastrophes can totally disrupt personal and business life. Technology is now available to protect you from losing important information when disaster strikes.

On a Personal Level

Financial institutions need tangible evidence of your existence. Even if the originals of documents are destroyed, you can reassert your identity with photographs. Take pictures of the front and back of all credit cards, debit cards, health cards, social insurance cards, driver’s licences, vehicle insurance cards, etc. Keep all original birth certificates, passports, change-of-name documents, adoption papers, copies of power of attorney, living wills or other caregiver instructions as well as appraisals of jewellery, artwork, collectible or other valuable insured items in a fireproof safe or safety deposit box.

Scan and add to the safe all documents that record RRSPs, RRIFs, investment and your Notices of Reassessment for the last six years to establish your income tax history.

Take pictures of all household furnishings. Not only will these be beneficial for insurance purposes, but they will also provide you with images to use when rebuilding your new home.

Use the highest resolution on your camera or smartphone so all names and numbers can be read when enlarged.

Take pictures of assets and serial numbers.

On a Business Level

Take pictures of all movable assets along with their serial numbers. Re-establishing ownership is easier if you can prove the asset belonged to your business. Scan or take pictures of both sides of all credit and debit cards.

Scan at least one Goods and Services report or Corporate Notice of Assessment to provide the business number.

Scan all important business documents:

• loan agreements
• insurance policies
• lease agreements
• articles of incorporation and resolutions that establish shareholders, directors and officers of the corporation
• bank account numbers, credit card numbers, etc., together with passwords
• invoices for capital asset purchases

Corporate History

If your business is destroyed the history of your success may disappear. Your accountant and lawyer may have copies of financial statements, tax returns and contracts, but what if their business suffers the same calamity as yours? Ensure your future is supported by the success of your past. Scan all financial statements and tax returns and back them up to USB drives, external hard drives or your cloud storage. If you cannot find your past data your accountant or lawyer should be able to PDF it to your computer for transfer to your remote storage facility.

Maximize Loss Recovery

Purchase an encrypted USB drive and an encrypted external hard drive and copy all data onto them. Store the USB in your safe and keep the hard drive at some other secure location such as a fireproof safety deposit box at your bank.

Perhaps the safest storage site of all is on the cloud. There are hundreds of cloud storage services available and thus the only question is how much storage do you need and how much will it cost. Companies such as Google, I Drive, and Microsoft offer a range from five GB to 15 GB for free and expanded storage services for a fee. Dropbox Pro offers a Terabyte of storage for about $10 per month.

Use one of the many web-offered password managers to store your passwords. For about $20 a year, they are a good long-term strategy. Make sure you store the password to log on to the password manager itself in a safe place.

Physical Security of Data

Important articles stored in the basement are more likely to survive because the basement does not usually get as hot as the burning structure above. If you are going to use a fireproof safe, ensure the ratings are at least in the 1750 F (955C) ranges. The best place to store the safe is in a corner. However, any extreme heat over an extended time will eventually erode even the most fireproof safe.

Precautions Reduce Anxiety

Recording personal and business data will not eliminate the heartbreak and stress that accompany such unfathomable tragedies. The use of multiple means to back up important personal and business data, however, will go a long way to reducing the anxiety and frustration that will accompany the long process of rebuilding your personal and business lives.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.
BUSINESS MATTERS is prepared bimonthly by the Chartered Professional Accountants of Canada for the clients of its members.
Richard Fulcher, CPA, CA – Author; Patricia Adamson, M.A., M.I.St. – CPA Canada Editor.
Contact us: patricia@adamsonwriters.ca

Technology

A video surveillance system may be a good investment for the security of your business.

It may sometimes seem that nearly every aspect of our lives is recorded. Although we may choose to record and share some of our moments on social media platforms, many more typically mundane moments are captured by security cameras that monitor the public and private spaces of our society. If you think your business could benefit from a surveillance system, take care to consider your options before making a purchase.

Advantages

There are two key elements to a video surveillance system: the recording system and the cameras themselves. As an owner or manager of a business, there are plenty of advantages to considering a video surveillance, or closed-circuit television (CCTV) system as a part of your business’ security. Some of the benefits may include:

• deterring crimes such as theft and vandalism
• protecting employees
• monitoring key entry points, areas and assets
• monitoring machinery and production processes
• providing evidence in the event of an incident

Cameras

A higher resolution camera, such as high definition (HD) 1080p will produce much more detailed images than a lower resolution camera. The ability to make out a face, or a licence plate clearly could be quite important. Many security camera models capture 15-30 frames per second (fps); a higher frame rate will provide smoother video. While a higher resolution and frame rate are clearly better both require more storage capacity.

If you have a large area to cover, you might consider cameras with a wide-angle lens. You may also want to consider zoom lenses to allow close up videos when required. Be sure to use outdoor cameras for outdoor installation; indoor models may not be sufficiently resistant to the elements, or durable to vandals.

Recording System

Secure storage of the recorded images is the heart of your surveillance system. Security images can be recorded using a dedicated appliance such as a Digital Video Recorder (DVR) or Network Video Recorder (NVR), a PC or even in the Cloud. The number of cameras the system can support may be limited by the hardware, software or even licences; whichever type of system you choose, be sure to leave room to expand.

Traditional CCTV systems are simpler to set up and more secure than their networked cousins because they use dedicated analogue coaxial cabling to transmit their images. A DVR receives the camera signals, processes the images and stores them in a compressed digital format that can be retrieved for later playback. A PC with both video-capture hardware and recording software can also perform the same task. In both cases, the hardware physically limits the number of video feeds that can be recorded.

Digital IP-based cameras can be more complex to set up, but the use of Internet standards provide for greater flexibility; IP cameras use Ethernet cables, or even WiFi, just like the other devices on your network. Aside from technological differences, an NVR serves much the same purpose as a DVR; the hardware may, however, limit the number of video signals it can receive and store. A PC with the right software can also be used to receive, store and play back video from your IP cameras; specialized hardware is not required. Many IP systems also allow live or stored video to be retrieved remotely, commonly via a web interface or even a mobile app.

An IP-based camera system can be recorded in the Cloud for a subscription fee.

If you prefer a more hands-off solution, an IP-based camera system can be recorded in the Cloud for a subscription fee. Keep in mind that this may require a lot more Internet bandwidth than if you just store your video locally. IP-based systems do require extra security – like the rest of the computers and devices on your network, they can be hacked.

Regardless of whether you choose CCTV or an IP-based system, storage capacity is an extremely important consideration. The video resolution, frame rate, number of camera feeds and length of time you need to keep your recordings will dictate the minimum amount of hard drive space you need. When the storage runs out, older recordings will be replaced by new ones; more capacity to start with is better.

Do not do it yourself

The many technical, mounting, transmission and security issues that accompany installation of surveillance cameras suggest hiring outside experts to install the equipment is the preferred way to go. When one considers camera requirements, weather conditions, positioning for maximum transmission and recording along with wiring, DVR/NVR placement, not to mention a service contract and warranty, spending a few dollars for installation is a smart expenditure.

Legal Issues

Even though the use of surveillance cameras in the workplace is quite common, Canadian courts are not in favour of the frivolous use of surveillance that infringes upon an employee’s right to privacy. The key question that must be answered before installing surveillance cameras in the workplace is: “Should the employee have a reasonable expectation of privacy?” As such, constant monitoring in the workplace may be frowned upon. Where cameras are installed in general areas, consider posting notices in conspicuous places to indicate the area is monitored. Such signs remove any doubt as to the expectation of privacy. If in doubt, it may be prudent to seek legal advice before installing a new surveillance system.

Plan Ahead

Before making a decision to buy a surveillance system, consider the needs of your business, your budget limitations and the legal aspects of installing cameras. If you decide to proceed, get equipment designed for commercial use. Avoid consumer-grade components which may be less durable and provide less flexibility. Buy the best you can afford.

 

 

 

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

MANAGEMENT

Attention small business owners: are your affairs in order in case death takes you by surprise?

About 150,000 people around the world die every day; of these, about 730 are Canadians. Even though death is still inevitable, life expectancy for Canadians has risen significantly in the last hundred years and continues to rise. A male born in Canada in 1911, for example, could expect to live for 47.1 years and a female for 50.1 years. A male born a century later in 2012 can expect to reach 79.8 years of age and a female to reach 83.9. This dramatic extension of life expectancy is largely attributable to a sharp reduction in infant and child mortality rates through medical intervention (e.g., vaccinations), improved sanitation and a better quality of life through the elimination of child labour, improved education, and better diet.

Changing Statistics

PIn the years between 1979 and 2009, the percentage of deaths due to diseases of the heart declined sharply to 22% from 35% for men (to 20% from 34% for women) while the number of deaths attributable to malignant neoplasms (i.e., malignant tumours that spread to other parts of the body) rose to 31% from 22% for men (to 29% from 24% for women).

Unexpected Death

If death comes unexpectedly, are your business and personal affairs in order so your business associates and family can move forward with the minimum of problems? As a test of your preparedness, ask yourself the following questions. Your answers will indicate what you need to do to be ready in case the unthinkable happens. Discuss the results with the appropriate individual and document as required.

• As a starting point, consider what information should be up to date.
• Who has signing authority on business and personal bank accounts?
• Who is your second to take over operations?
• Is key man insurance in place?
• Are financial statements current for valuation purposes?
• Have you established protocols and the format of notification of your death to clients and suppliers? (email? text?)
• Is there a (prewritten) letter to all clients and suppliers assuring them that the business is still viable and that named individuals will be looking after their accounts and business?
• Does the company have a corporate lawyer and a corporate accountant who should be notified?
• Is there a summary of all business and personal passwords to access bank accounts, tax accounts, computer programs, Cloud applications, hard drive backup, and client accounts?
• Are the minutes of the company kept up to date?
• Do the registers of directors and shareholders reflect current appointments?
• Is there a listing of all business and personal insurance policies, RRSPs, TFSAs and other such investment vehicles that must be accessed?
• Is there a listing of financing arrangements for business and personal vehicles, and your residence?
• Is there a listing of all credit cards and required passwords to determine balances owing?

Is your will up to date to reflect changes in your personal life?

• Is your will up to date to reflect a divorce, marriage, acquired children or other dependants who may have created claims on your estate?
• Have you determined what, if anything, you wish to give to charities?
• Are survivors aware of who has the original will?
• Who is the executor(s) of the estate?
• Have insurance policies, RRSPs, TFSAs and the like been updated to ensure that the named beneficiary is correct?
• Have you reviewed personal and business debt to determine whether insurance coverage is adequate?
• Has a guardian for children or those with disabilities been named?
• Is access to safes and safety deposit boxes guaranteed with appropriate passwords, keys, and alarm codes?
• Have you considered meeting with funeral directors to discuss funeral arrangements (and payment) for a religious funeral service, cremation or burial to reduce the stress on survivors?
• Are family members aware that the Canada Pension Plan will pay a death benefit to the spouse and/or survivors in the event of your death?
• Have you considered a Statement of Wishes that outlines such issues as funeral arrangements, custody of children, and any other area that you would like to be in place upon your death? (Although not necessarily legally enforceable, it does provide guidance to survivors in times of stress.)
• And finally… have you made a list of the above-named items and provided those lists to the appropriate individuals who need to know how to act?

Act Now

We all put off what we should do today until tomorrow… but what if tomorrow never comes?

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

TAXATION

Registered Disability Savings Plans help persons with disabilities save for the future.

Having a disability or caring for an individual with a disability can be emotionally and financially draining. The Canadian government, recognizing the need to assist in the future care of an individual with a disability, has created a vehicle for persons with disabilities and their families to save for the future.

As a Starter

The first step is to open an RDSP in the name of the beneficiary who must be a Canadian resident under the age of 60. If the beneficiary is 59, the plan must be opened before the end of the calendar year in which the individual turned 59. Other requirements for enrolment include the need to have a social insurance number and be eligible for the disability tax credit. The program allows only one RDSP per beneficiary and only one beneficiary per RDSP.

Determining the Holder

Once these criteria have been met, the RDSP holder (administrator) must be determined. The holder can be an individual or an organization. If the beneficiary is under the age of majority (the age of majority varies from province to province), the holder can be a parent, a legal representative or the provincial trustee.

If the beneficiary is over the age of majority but not capable of entering into the RDSP arrangement, specified family members may be able to open the RDSP on behalf of the disabled beneficiary until the end of 2018.

Choosing the Financial Institution

The RDSP must be administered through a financial institution participating in the program. Most banks, as well as a number of credit unions and trust companies, offer this service.

There is no annual contribution limit.

Contribution Limits

Unlike other savings plans, there is no annual limit on contributions to an RDSP. However, the lifetime limit of contributions is $200,000 and the threshold must be met by the end of the calendar year in which the beneficiary attains 59 years of age. The federal government actively contributes to an RDSP plan based upon family income levels.

Tax-Deferred Growth

Similar to the Registered Education Savings Plan (RESP), contributions made to the RDSP are not eligible for a tax deduction by the contributor(s) but income and capital gains within the plan grow on a tax-deferred basis. Once the funds are withdrawn, the amount is taxed as income in the hands of the beneficiary. Withdrawals include a blend of taxable and non-taxable amounts. Money that has been contributed to the RDSP is not included as taxable income when it is withdrawn. (The amount of non-taxable income is calculated according to a formula developed by the Canada Revenue Agency.) However, investment income and capital gains, plus any Canada Disability Savings Grant (CDSG) and Canada Disability Savings Bond (CDSB) amounts in the plan are included in the beneficiary’s income for tax purposes when paid out of the RDSP.

Contributions and Withdrawals

It may come as a surprise, but anyone can contribute to a specific RDSP as long as the holder approves the contribution amount in writing. Withdrawals must begin when the beneficiary turns 60. Annual withdrawals, Lifetime Disability Assistance Payments (LDAPs), continue until the death of the beneficiary. A beneficiary may make a one-time withdrawal under the Disability Assistance Programme (DAP).

Investment Criteria

The investment criteria mirror those of an RRSP investment in that investments can be made in mutual funds, fixed income investments, GICs and Canadian, U.S. and foreign equities, including new issues.

Canada Disability Savings Grant

The beauty of the RDSP is that the federal government will assist saving for the beneficiary by providing matching grants of up to 300% for every dollar placed into the account by contributors. The maximum grant provided through the Canada Disability Savings Grant tops out at $3,500 per annum and has a ceiling of $70,000 during the matching contribution period that ends when the beneficiary turns 49 years of age.

As can be expected, grant amounts are based upon the beneficiary’s family income and inflationary factors but, if you meet the various criteria to apply for the grants, the rewards to the RDSP are as follows:

If family income is less than or equal to $87,900:

• For the first $500 you contribute each year to the RDSP, the federal government will deposit $3 for every $1 you contribute, up to $1,500 a year.
• For the next $1,000 you contribute each year to the RDSP, the government will deposit $2 for every $1 you contribute, up to an additional $2,000 a year.

If family income is greater than $87,900:

• For the first $1,000 you contribute each year to the RDSP, the government will deposit $1 for every $1 you contribute, up to $1,000 a year.

The government also contributes funds to low- and modest-income Canadians through the Canada Disability Savings Bond. Those who qualify can receive up to $1,000 per annum to a maximum of $20,000, depending upon family income. The government will make no more contributions after the year in which the beneficiary turns 49. Note that it is possible to receive the bond even if contributions are not made to the RDSP

Withdrawals from RDSPs

Because RDSPs are designed as long-term plans, withdrawal of funds from either the bond program or the grant program before the 10th anniversary triggers repayment requirements. Plan holders should be aware that the death of the beneficiary or a determination that the beneficiary may have a shortened life expectancy will create withdrawal or repayment requirements.

Because withdrawals or the death of the beneficiary will create different repayment or settlement terms, the beneficiary should understand the financial and income tax impact of early withdrawal, death or shortened life expectancy. Your CPA tax advisor, in conjunction with the financial institution representatives should be able to offer advice.

Excellent Means of Saving

RDSPs are an excellent vehicle for individuals with disabilities or those responsible for their future financial security. As in any program designed to look after the future welfare of those we care for, the earlier the program is registered, the more opportunity is available not only for government contribution but for the RDSP to grow and provide that financial security.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

MONEYSAVER

If you have a medical condition that first responders need to know about, consider getting a MedicAlert bracelet or dog-tag.

Canadian business owners do business all over the world. Most enjoy medical coverage from their respective province or territory and may carry additional travel and medical insurance when out of their province of residence.

Just as important as medical coverage, however, is the ability of emergency response teams or a foreign doctor, nurse or medical support worker to know immediately whether you have any special conditions that could determine how you need to be treated.

A MedicAlert bracelet or dog-tag lets first responders know that you have a specific medical condition or a specific allergy even if you are unconscious. (The bracelet/dog-tag can be easily identified by the symbol of a serpent-entwined rod known as the Staff of Asclepius, a Greek god associated with healing.) The MedicAlert Foundation is a non-profit, charitable, and membership-based organization founded in 1956 in Turlock, California, by Dr. Marion Collins. The Foundation’s mission is to protect and save lives by serving as the global information link between members and emergency responders during medical emergencies and other times of need.

The Bracelet/Dog-Tag

Each MedicAlert bracelet/dog-tag provides first responders with information regarding allergies, implants such as artificial heart valves, medical treatments such as chemotherapy and treatment wishes.

Each bracelet/dog-tag contains the wearer’s unique ID number, medical condition and an emergency toll free number that connects to a live operator 24 hours a day seven days a week. As well, the organization provides a wallet card with emergency contacts and health information.

Worldwide Information Network

In the event of a medical emergency, medical practitioners or first responders can call the emergency number and speak to a live operator who can reference your health records that may include your medical condition, types of medications and dosage, as well as past surgical history. If the emergency requires transfer to a medical facility, MedicAlert will transmit the information to that facility so the information will be available when you arrive. In the event your travel takes you out of country, the MedicAlert Foundation is present in more than 50 countries and translation service is available in over 140 languages.

Low Cost

Firstly, let it be known that it is not possible to obtain a MedicAlert bracelet/dog-tag without becoming a member. Because the bracelet/dog-tag cannot carry all your medical information, you must become a member before the bracelet/dog-tag will be issued.

MedicAlert protection starts at $39.

According to their Canadian website, the cost of the MedicAlert ID starts at $39. (For the fashion conscious, MedicAlert provides a catalogue of specialty wear that resembles jewellery with prices topping out at around $2,700.) On top of the cost of the bracelet/dog-tag, a $24 fee is required to set up your medical profile and ensure the ID bracelet/dog-tag is properly engraved. The coverage after that is $5 per month with small discounts provided for prepayments of 24 or 36 months.

Other services provided by the MedicAlert membership include:

• online access to your medical information anywhere 24/7
• notification of family members or other named individuals in the event of a mishap

MedicAlert offers an optional service plan that enhances the basic plan with additional personal information that includes for example DNR orders, X-rays, MRIs, or CAT scans. These documents are available to a designated proxy or medical practitioner as needed.

If you are a frequent flyer, an entrepreneur who has previous medical history or have employees who could benefit from wearing a MedicAlert bracelet/dog-tag, perhaps now is a good time to investigate membership. Unfortunately, the cost of membership is not a tax-deductible medical expense and thus, if management determined that membership should be paid by the business, that cost would possibly be considered a taxable benefit.

MedicAlert Reduces Risks

The MedicAlert program is relatively inexpensive when one considers that information provided to first responders or medical practitioners provides knowledge crucial to your well being. That knowledge could reduce the risk of incorrect medical treatment as a result of a wrong diagnosis, may prevent unnecessary medical care, and ultimately just might save your life.

Contact Argento CPA today!

Source: BUSINESS MATTERS

Disclaimer: BUSINESS MATTERS deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.