Category: Insights

What are financial KPIs?

What are Financial KPI’s? They (Key Performance Indicators) are metrics used to assess the financial performance of a company or organization. Here are some examples of financial KPIs:

1. Revenue: This is the total amount of money generated by a company through sales of products or services.
2. Gross Profit Margin: This is the percentage of revenue that remains after deducting the cost of goods sold.
3. Net Profit Margin: This is the percentage of revenue that remains after deducting all expenses, including cost of goods sold, operating expenses, interest, and taxes.
4. Return on Investment (ROI): This is a measure of how much profit a company generates relative to the amount of capital invested.
5. Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA): This is a measure of a company’s operating performance and is calculated by adding back depreciation and amortization expenses to net income.
6. Debt-to-Equity Ratio: This is a measure of a company’s financial leverage, calculated by dividing its total liabilities by its total equity.
7. Current Ratio: This is a measure of a company’s ability to pay its short-term liabilities with its current assets.
8. Inventory Turnover Ratio: This is a measure of how quickly a company sells its inventory and is calculated by dividing the cost of goods sold by the average inventory.
9. Customer Acquisition Cost (CAC): This is the cost of acquiring a new customer, including marketing and sales expenses.
10. Lifetime Value of a Customer (LTV): This is a measure of the total revenue a company can expect from a single customer over their lifetime.

How do financial KPI’s metrics help your business?

Financial KPIs help businesses in a variety of ways by providing valuable insights into their financial performance. Here are some ways in which financial KPIs can help your business:

1. Measure and track progress: Financial KPIs allow you to track your progress over time, identify areas where you are doing well, and pinpoint areas where you need to improve.
2. Evaluate performance: Financial KPIs provide an objective measure of your business’s performance and allow you to evaluate your performance against industry benchmarks or your own goals.
3. Make informed decisions: Financial KPIs provide valuable insights that can help you make informed decisions about your business, such as whether to invest in new equipment, hire more staff, or launch a new product.
4. Monitor cash flow: Financial KPIs such as revenue, profit margin, and cash flow provide insights into the financial health of your business and allow you to make decisions to improve cash flow and profitability.
5. Identify trends: Financial KPIs allow you to identify trends in your business, such as changes in revenue, expenses, or profit margin, and make adjustments to your operations to address these trends.

Overall, financial KPIs provide a clear picture of your business’s financial performance and help you make informed decisions to improve your operations, maximize profitability, and achieve your business goals.

How does tracking financial KPI‘s help your customer’s experience?

While financial KPIs primarily focus on measuring and improving a company’s financial performance, tracking these metrics can also have a positive impact on the customer experience. Here are some ways in which financial KPIs can indirectly improve the customer experience:

1. Improved product or service quality: By tracking metrics such as customer satisfaction or net promoter score, companies can gain insights into the quality of their products or services and make improvements to better meet customer needs.
2. Faster order processing: Financial KPIs such as inventory turnover ratio or order fulfillment cycle time can help companies identify areas where they can improve their order processing and delivery times, leading to a better customer experience.
3. Enhanced customer support: Financial KPIs such as customer acquisition cost and lifetime value of a customer can help companies identify areas where they need to invest in customer support to improve the overall customer experience.
4. Competitive pricing: Financial KPIs such as gross profit margin and return on investment can help companies determine their pricing strategy and ensure they remain competitive in the marketplace, providing customers with a better value for their money.

Tracking financial KPIs can indirectly improve the customer experience by helping companies make data-driven decisions to improve product or service quality, speed up order processing, enhance customer support, and offer competitive pricing. By improving these aspects of their business, companies can create a more positive customer experience and increase customer loyalty and retention.

Why is accurate bookkeeping important for understanding your financial KPIs?

Accurate bookkeeping is essential for understanding your KPIs because financial KPIs are based on financial data that is recorded in your company’s books. Without accurate and up-to-date bookkeeping records, your financial KPIs may be inaccurate, which can lead to incorrect analysis, decision-making, and performance evaluations.

Here are some reasons why accurate bookkeeping is important for understanding your KPIs:

1. Ensure Data Accuracy: Accurate bookkeeping records provide a reliable source of data for calculating your financial KPIs. If the data is incorrect or incomplete, your KPIs may not accurately reflect your business’s financial performance.
2. Facilitate Decision-Making: Accurate bookkeeping records can help you make informed decisions based on reliable financial data. This includes identifying areas where you need to make improvements and allocating resources to initiatives that will have the greatest impact on your business’s financial performance.
3. Provide a Basis for Comparisons: Bookkeeping records can help you compare your company’s financial performance against industry benchmarks or your own historical data. This can help you identify areas where you are performing well or where you need to improve.
4. Facilitate Tax Compliance: Accurate bookkeeping records are essential for tax compliance, including filing accurate tax returns, paying taxes on time, and avoiding penalties and interest charges.

Financial KPI’s are essential for informed decision making

In summary, accurate bookkeeping is essential for understanding your KPIs because it provides a reliable source of financial data that you can use to make informed decisions, identify areas for improvement, and track your financial performance over time.

Contact Argento CPA today if you need help with tracking your KPIs and bookkeeping.

Our team loves setting goals with our clients and helping them track their progress and measure success.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

Bookkeeping for Small Business Canada: The Basics You Need to Know

As a small business owner in Canada, you have a lot on your plate. You need to focus on running your business and serving your customers. However, bookkeeping is an essential task that cannot be overlooked. Accurate bookkeeping is crucial for making informed decisions about the financial health of your business. In this blog, we will cover the basics of bookkeeping for small businesses in Canada.

What is Bookkeeping?

Bookkeeping is the process of recording all financial transactions of your business. This includes keeping track of income, expenses, and assets. Bookkeeping is a crucial component of accounting, and it lays the foundation for creating financial statements and tax returns.

Why is bookkeeping for small business Important?

Bookkeeping is vital for several reasons. First, it helps you keep track of your finances, so you can make informed decisions about your business. You can see how much money you have coming in and going out, and you can use this information to make adjustments to your business strategy. Second, accurate bookkeeping is essential for tax compliance. You need to keep accurate records to file your taxes correctly and avoid penalties. Finally, bookkeeping is essential for securing funding. If you want to apply for a loan or seek investors, you need to provide accurate financial statements that demonstrate the financial health of your business.

What are the Key Bookkeeping Tasks?

There are several bookkeeping tasks that small business owners need to perform. These include:

1. Recording transactions: You need to keep track of all your income and expenses, and record them in a ledger or accounting software. This includes all sales, purchases, and payments.

2. Reconciling accounts: You need to reconcile your bank accounts and credit card statements to ensure that all transactions are accurate and accounted for.

3. Generating financial statements: You need to create financial statements such as income statements, balance sheets, and cash flow statements. These statements help you understand the financial health of your business.

4. Payroll: If you have employees, you need to keep track of their pay and deductions.

5. HST/GST: If you are registered for HST/GST, you need to keep track of your input tax credits, output tax owed, and filing deadlines.

How to Get Started with Bookkeeping?

If you are just starting with bookkeeping, here are some steps you can take:

1. Choose an accounting system: You can use a spreadsheet or accounting software. There are many accounting software options available in Canada, such as QuickBooks and Xero.

2. Set up a chart of accounts: A chart of accounts is a list of all the accounts you will use to record your transactions. This includes income accounts, expense accounts, asset accounts, and liability accounts.

3. Record your transactions: You need to record all your transactions, including sales, expenses, and payments. This can be done manually, or you can automate the process using accounting software.

4. Reconcile accounts: You need to reconcile your bank accounts and credit card statements to ensure that all transactions are accurate and accounted for.

5. Generate financial statements: You need to create financial statements such as income statements, balance sheets, and cash flow statements.

What about audit proofing records?

Audit-proofing your bookkeeping records is an essential aspect of managing your small business finances in Canada. It involves keeping your financial records organized, accurate, and up-to-date, so you can easily provide them to the Canada Revenue Agency (CRA) in the event of an audit.

Here are some tips for audit-proofing your bookkeeping records:

1. Keep Accurate Records: It’s crucial to keep accurate records of all your business transactions, including income, expenses, and assets. Ensure that you record all transactions promptly and keep all receipts, invoices, and bank statements.

2. Use Cloud Software: Using cloud software such as Dext to manage your bookkeeping can help you keep your records organized and up-to-date. It can also reduce the risk of human error in data entry with it’s scanning capabilities.  Plus it keeps a digital record on the cloud.

3. Separate Business and Personal Expenses: It’s essential to separate your personal and business expenses. This means having separate bank accounts and credit cards for your business and personal expenses.

4. Reconcile Your Accounts: Ensure that you reconcile your bank and credit card statements to ensure that all transactions are accounted for.

5. Maintain Proper Documentation: Ensure that you have supporting documentation for all your transactions, such as invoices, receipts, and contracts.

6. Have a Backup System: It’s crucial to have a backup system for your bookkeeping records, such as cloud storage or an external hard drive. This can protect you in case of a computer crash, theft, or fire.

7. Get Professional Help: Consider working with a bookkeeper or accountant to ensure that your bookkeeping records are accurate and up-to-date. They can help you identify potential problems before they become significant issues. They also know all the trics to automate your accounting and audit proofing your records on the cloud. An experienced accountant can help your small business in Canada get set up correctly right from the get go. This will ensure your business has the foundation to grow and achieve the greatest chance of success. And most importantly, make sure you never lose a CRA audit due to having poor records and documentation.

Conclusion

In conclusion, bookkeeping is an essential task that small business owners in Canada need to perform. It helps you keep track of your finances, comply with tax regulations, and secure funding. By following the basics outlined in this blog, you can get started with bookkeeping and ensure that your business is financially healthy. If you find bookkeeping to be overwhelming, consider hiring a bookkeeper or accountant to assist you.

Contact Argento CPA today if you need help with your bookkeeping. 

Our team takes the time to actively listen to your needs and tailor your accounting system to ensure that you comprehend your financial figures and the process involved. As we understand that reliable bookkeeping serves as a cornerstone for success, we value your business just as much as we do our own.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

Why is a business plan important?

One of the most important tools that any small business owner needs is a business plan. This is a document that outlines your company’s goals, strategies, and operations. It is an essential tool for any entrepreneur, and here are 10 reasons why:

1. Clarify your business concept: Firstly, a business plan helps you clarify your business concept. You can define your vision, mission, and goals, as well as your target market, products or services, and marketing strategies. Writing a business plan forces you to think critically about your business and to gain clarity on the direction you want to take. Moreover, this clarity can help you communicate your vision and goals to your stakeholders effectively.
2. Secure funding: If you’re seeking funding for your small business, a business plan is a must-have. Investors and lenders want to see that you have a clear plan and realistic projections for profitability. A well-crafted plan can help you attract investors or secure funding from lenders. Additionally, having a business plan can help you better understand your financial needs and structure, making it easier to pitch your business to potential investors.
3. Set priorities and timelines: a business plan helps you set priorities and timelines. When starting a small business, it’s easy to get overwhelmed by all the tasks at hand. However, with a plan, you can prioritize the key activities needed to launch and grow your business, and establish realistic timelines for achieving your goals. This can help you avoid distractions and stay on track, ensuring that your business is moving forward in the right direction.
4. Manage risks: Running a small business can be challenging, as it often involves taking risks. Therefore, having a business plan is critical to ensure that you identify potential risks and challenges, and develop contingency plans to mitigate them. By anticipating potential problems, you can avoid surprises and manage risks more effectively.
5. Test assumptions: A business plan helps you test assumptions about your market, customers, and competition. By researching your market, you can validate or refute your assumptions and adjust your strategies accordingly. This helps you avoid costly mistakes and refine your approach to better meet the needs of your customers.
6. Measure progress: A plan serves as a roadmap for measuring your progress and adjusting your strategies as needed. By tracking your performance against your plan, you can identify areas where you’re succeeding and areas where you need to improve. This helps you stay on track and make informed decisions about how to move your business forward.
7. Align stakeholders: A plan helps you align the interests of stakeholders, including employees, investors, suppliers, and customers, around a shared vision and set of objectives. By communicating your plans and strategies to these groups, you can create a sense of shared purpose and commitment.
8. Stay focused: To succeed in running a small business, it is important to stay focused on your goals. Facing temptations to pursue new opportunities and getting sidetracked by day-to-day tasks can be overwhelming. However, by having a plan, you can avoid distractions and maintain focus on your core objectives that align with your overall strategy.
9. Enhance credibility: A well-crafted business plan can enhance your credibility with stakeholders. By demonstrating your competence, expertise, and commitment to your business, you can build trust and confidence among investors, customers, and other stakeholders.
10. Improve decision-making: A plan helps you make better-informed decisions. In addition, it provides a framework for evaluating options and weighing the pros and cons of different approaches. With this framework, you can make decisions that are based on data and analysis, rather than intuition or guesswork.

A business plan is an essential tool for any small business owner. Not only can it help you clarify your vision, but it can also assist in securing funding, setting priorities, managing risks, testing assumptions, measuring progress, aligning stakeholders, staying focused, enhancing credibility, and improving decision-making. Therefore, if you haven’t already written a business plan for your small business, now is the time to start, as it can provide a clear roadmap for your business growth and success.

How can you best get started with a business plan?

The digital adoption program in Canada is an excellent place to start for a business plan, for a number of reasons. As the world becomes increasingly digital, businesses that do not adapt to these changes risk falling behind their competitors. Through digital adoption program, your business can embrace digital tools and technologies, and stay ahead of the curve. Here are some reasons why the digital adoption program in Canada is a great idea for a business plan:

1. The government will cover 90% of the cost to build the plan up to a maximum of $15,000.
2. Once you have developed the plan, you can apply for a 0% interest 5-year loan for up to $100,000.

The government of Canada is basically covering the cost of eligible businesses to work with an advisor to develop a plan. You don’t want to miss out on this opportunity!

Contact Argento CPA today if you need help with your business plan or digital adoption grant.  We are a forward thinking firm who are experts at getting your business on track.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

Ten Reasons Why you Need to Hire an Accountant for Bookkeeping

Bookkeeping is a crucial aspect of running a successful business. It involves tracking all of the financial transactions that occur within a company, including sales, purchases, and expenses, and recording them in a systematic manner. The primary goal of bookkeeping is to provide a clear and accurate picture of a company’s financial status, which is essential for making informed business decisions and achieving financial success. However, managing the bookkeeping process can be time-consuming and challenging, especially for small business owners who are already dealing with many other responsibilities. That’s where an accountant can help.

Here are ten key reasons why you should consider hiring an accountant to help with your bookkeeping:

1. Expertise and experience: An accountant has the necessary expertise and experience to ensure the accuracy of your bookkeeping records. They have been trained in accounting principles, have a deep understanding of financial transactions, and can apply that knowledge to your business. With their experience, they can quickly identify and resolve any errors in your bookkeeping, providing you with peace of mind and confidence in your financial data.
2. Time savings: Outsourcing your bookkeeping to an accountant can free up your time to focus on other aspects of your business. Keeping accurate financial records is a time-consuming process that can take you away from other important tasks, such as growing your business and serving your customers. By delegating this task to an accountant, you can focus on what you do best, knowing that your bookkeeping is in good hands.
3. Improved efficiency: An accountant can streamline your bookkeeping processes, making it easier and more efficient to manage your financial records. They have access to the latest technology and tools, and can suggest new systems and software that will make your bookkeeping more efficient. They can also help you develop a bookkeeping routine that is effective and efficient, reducing the time you need to spend on this task.
4. Compliance with regulations: An accountant can help ensure that your bookkeeping practices are in compliance with all relevant regulations and laws. They have a deep understanding of the tax code, and can help you stay up-to-date with all the latest changes. By working with an accountant, you can avoid costly penalties and fines, and ensure that your financial records are in compliance with all relevant regulations and audit proofed on the cloud.
5. Financial insight: An accountant can provide valuable financial insight and analysis based on your bookkeeping data, helping you make informed business decisions. They can help you understand your financial data, and provide insights into your business performance. With their expertise, they can help you identify trends and patterns in your financial data, and make recommendations for improving your bottom line.
6. Peace of mind: Hiring an accountant can give you peace of mind knowing that your financial records are in good hands. They will take care of the details, so you can focus on growing your business and serving your customers. With an accountant, you can rest easy knowing that your financial data is accurate and up-to-date.
7. Reduced stress: Managing your own bookkeeping can be stressful, but an accountant can take that burden off your shoulders. They can handle the tedious task of recording financial transactions, allowing you to focus on other important aspects of your business. By outsourcing your bookkeeping to an accountant, you can reduce your stress levels and have more time to enjoy life outside of work.
8. Identification of errors: An accountant can help identify and resolve any errors or discrepancies in your records. They have a keen eye for detail and can quickly spot any errors or inconsistencies in your financial data. With their expertise, they can help you correct these errors, ensuring the accuracy of your financial records.
9. Implementation of new tools: An accountant can suggest and implement new tools and systems to help you manage your bookkeeping more effectively. They are knowledgeable about the latest technology, and can recommend new systems and software that will help you streamline your bookkeeping processes. With their help, you can modernize your bookkeeping processes, making them faster, more efficient, and more effective.
10. Trend and pattern analysis: An accountant can help identify trends and patterns in your financial data, providing valuable information to inform your business decisions. They can help you understand the direction your business is heading, and provide insights into areas where you may need to make changes. By working with an accountant, you can stay ahead of the curve, making informed decisions that help your business grow.

In conclusion, hiring an accountant to assist with your bookkeeping offers numerous benefits, including expertise and experience, time savings, improved efficiency, compliance with regulations, financial insight, peace of mind, reduced stress, identification of errors, implementation of new tools, and trend and pattern analysis. So, if you want to make your bookkeeping process easier and more effective, consider hiring an accountant today.

Contact Argento CPA today if you need help with your bookkeeping  We are a forward thinking firm who are experts at getting you started in cloud accounting.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

How Technology is Changing the Industry

Bookkeeping has been a critical aspect of business operations for centuries, providing accurate financial records and information to make informed decisions. With the advent of technology, the bookkeeping industry is undergoing a massive transformation, shaping the future of this essential business function.

The future of bookkeeping: Digitalization

One of the most significant changes in the bookkeeping industry is the digitalization of bookkeeping processes. The use of cloud-based bookkeeping software has increased dramatically in recent years, making it easier and more convenient for businesses to manage their financial records. With cloud-based software, businesses can access their financial data from anywhere, at any time, reducing the need for manual record-keeping and enabling real-time data analysis.

Efficiency and Accuracy

One of the biggest benefits of digital bookkeeping is the increased efficiency and accuracy of financial record-keeping. With digital tools, bookkeepers can automate many manual tasks, reducing the likelihood of human error and ensuring that financial records are accurate and up-to-date. Automated tools also reduce the time required to complete bookkeeping tasks, freeing up time for more strategic tasks, such as financial analysis and planning.

The future of bookkeeping: Artificial Intelligence and Machine Learning

Artificial intelligence and machine learning are also playing a significant role in the future of bookkeeping. With these technologies, bookkeeping software can analyze financial data and identify patterns, trends, and anomalies, providing businesses with valuable insights into their financial performance. Additionally, AI and machine learning can be used to automate complex bookkeeping tasks, such as reconciling bank statements and generating financial reports.

Financial Planning and Forecasting

Bookkeeping data is critical in financial planning and forecasting, providing businesses with a comprehensive understanding of their financial position. With the increased accuracy and efficiency of digital bookkeeping, businesses can make informed decisions about their future financial trajectory, reducing the risk of financial surprises and allowing them to plan for long-term success.

The future of bookkeeping: Scaling your Business

Scaling a business requires a strong financial foundation, and bookkeeping is a critical component of that foundation. By using digital bookkeeping tools and technologies, businesses can streamline their financial record-keeping processes, reducing the time and resources required to manage financial data. This allows businesses to focus on growth and scaling their operations, confident that their financial data is accurate and up-to-date.

Artificial intelligence (AI) can be a powerful tool for forecasting cash flow and profits. By analyzing historical financial data and identifying patterns and trends, AI algorithms can make predictions about future financial performance. These predictions can help businesses plan for future cash flow and profits, allowing them to make informed decisions about investments, expansion, and other business initiatives.

For example, an AI-powered cash flow app such as Fathom can analyze data on past sales, expenses, and other financial transactions to predict future revenue and expenses. This information can then be used to forecast cash flow and profits, providing businesses with a clear understanding of their financial position and helping them to plan for the future.

In addition, AI can be used to identify potential risks and opportunities, such as changes in market conditions or shifts in consumer behavior. This allows businesses to proactively adjust their strategies to ensure long-term financial stability and success.

Overall, the use of AI in bookkeeping provides businesses with valuable insights into their financial performance, enabling them to make informed decisions about their future and plan for growth and success.

In addition, digital bookkeeping provides businesses with real-time data and insights into their financial performance, allowing them to make informed decisions about their future growth. With access to accurate and up-to-date financial information, businesses can identify areas of improvement and make changes that will help them scale their operations more effectively.

What Happens if your Business Doesn’t Adapt to New Technologies?

If a business does not adapt to new trends in AI and technology in the bookkeeping industry, it may face several challenges, including:

Inefficient Record-Keeping: Continuing to use manual or outdated bookkeeping methods can be time-consuming and prone to errors, leading to inaccuracies in financial data and a negative impact on business operations.

Lack of Real-Time Data: Without access to real-time financial data and insights, businesses may struggle to make informed decisions about their financial position and future growth.

Inability to Forecast: Without the ability to forecast cash flow and profits, businesses may struggle to plan for the future and identify opportunities for growth.

Increased Competition: Businesses that fail to adapt to new technology in the bookkeeping industry may fall behind their competitors, who are leveraging technology to streamline their operations and improve their financial performance.

Missed Opportunities: By not embracing AI and other technological advancements in bookkeeping, businesses may miss opportunities to automate repetitive tasks, identify patterns and trends, and make informed decisions about their financial performance.

Failing to adapt to new trends in AI and technology in the bookkeeping industry can have a significant impact on a business’s financial performance, competitiveness, and overall success. By embracing these new technologies, businesses can improve their financial data management, gain valuable insights into their financial performance, and plan for a successful future.

Conclusion

The future of bookkeeping is exciting, with technology playing a significant role in shaping the industry. From digitalization and automation to artificial intelligence and machine learning, the tools and technologies available to bookkeepers are constantly improving, making bookkeeping more efficient, accurate, and strategic. As technology continues to evolve, it is likely that the bookkeeping industry will continue to change and evolve, providing businesses with new and innovative ways to manage their financial records and make informed decisions.

Contact Argento CPA today if you need help with your bookkeeping  We are a forward thinking firm who are experts at getting you started in cloud accounting.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

How to use it to your advantage and get your business ahead

Digital adoption is rapidly changing how businesses operate, and the accounting field is no exception. With the rise of digital solutions, companies can automate and streamline their accounting processes, leading to improved efficiency and cost savings.

In this article, we will cover the following:

1. How is digital adoption affecting your accounting process
2. What can your business do to stay ahead of the curve?
3. Why the Canada Digital Adoption Program (CDAP) is a great place for your business to start

How digital adoption is affecting your accounting process:

Understanding digital adoption: Accounting software

One of the most significant ways digital adoption affects accounting is through the use of accounting software. Accounting software, such as QuickBooks and Xero, automate many of the tasks involved in accounting, such as bookkeeping, invoicing, and financial reporting. This can help businesses save time and reduce errors, improving accuracy and customer satisfaction. Additionally, many accounting software programs include features allowing companies to collaborate with other team members, improving communication and decision-making.

Another digital solution that is affecting accounting is the use of online invoicing and payments. Platforms such as PayPal and Stripe allow businesses to send invoices and receive payments online, which helps reduce the need for paper-based transactions. This can make the invoicing and payments process more efficient and make it easier for customers to pay their invoices.

Understanding digital adoption: Digital payments

Digital payment solutions refer to various methods of making and accepting payments electronically, without the need for cash or checks. Some examples of digital payment solutions include:

Credit and debit cards: These are the most widely used forms of digital payments. They allow customers to make purchases online or in-store using their credit or debit card.

Mobile payments: Mobile payments refer to the ability to make payments using a mobile device, such as a smartphone or tablet. Examples include Apple Pay, Google Wallet, and Samsung Pay.

E-wallets: E-wallets are digital wallets that store payment information, such as credit card details, in a secure manner. They allow customers to make payments quickly and easily, without having to enter their payment information each time.

Online banking: Online banking allows customers to make payments and transfer money through their bank’s website or mobile app.

ACH (Automated Clearing House) payments: ACH payments are electronic payments that are processed through the ACH network. They are commonly used for direct deposit of payroll, Social Security payments, and other types of recurring payments.

Cryptocurrency: Cryptocurrency is a digital or virtual currency that uses cryptography for security. Examples include Bitcoin and Ethereum.

Digital Invoicing: Digital invoicing refers to the ability to create, send, and receive invoices electronically. It can be done via email, or via a digital invoicing software.

These digital payment solutions offer many benefits to both businesses and customers, such as increased security, convenience, and speed of transactions. Additionally, digital payments can help improve cash flow and reduce costs associated with handling cash and checks. With the increase of digital payments, organizations can now process payments and transactions more quickly, securely, and efficiently. 

Most of all, digital payment solutions should be setup to integrate seamlessly with your accounting and save you tons of time and headaches with reconciliations.

Understanding digital adoption: receipt scanning

Receipt scanning and tracking is another area where digital solutions significantly impact accounting. Tools such as Expensify and Dext can scan and track receipts, invoices, and bills, which can help to automate the expense reporting process. This can save businesses time and reduce errors, which can help to improve customer experience.

Understanding digital adoption: Time tracking

Time tracking is another accounting aspect that is affected by digital adoption. Platforms such as QuickBooks Time, Toggl, and Clockify can help businesses track employees’ time on specific tasks. This can help them better understand their labor costs and improve their billing accuracy. Additionally, time tracking can help businesses to identify inefficiencies and make adjustments to improve productivity.

Understanding digital adoption: Business intelligence and analytics

Business intelligence and analytics also play a big role in how digital adoption affects accounting. Platforms such as Tableau, Power BI, or Looker can help businesses to gain real-time insights into their business performance and identify areas for improvement. This can help companies to improve customer experience by making informed decisions and responding quickly to customer needs.

Online collaboration tools

There are many online collaboration tools available, and the best one for a specific organization will depend on their specific needs and preferences. Here are some examples of popular online collaboration tools:

Slack: A real-time messaging and collaboration tool that allows team members to communicate and share files in a centralized platform.

Microsoft Teams: A collaboration platform that includes video conferencing, instant messaging, and file sharing capabilities.

Google Workspace (formerly G Suite): A suite of cloud-based productivity tools that includes Gmail, Calendar, Drive, and Docs, among others.

Trello: A project management tool that allows teams to organize and prioritize tasks using boards, lists, and cards.

Asana: A project management tool that allows teams to track tasks and projects, and share documents and files.

Zoom: A video conferencing tool that allows for real-time meetings, webinars, and video chat.

Basecamp: A project management tool that allows teams to collaborate on projects, share files, and communicate in real-time.

Monday.com: A project management tool that allows teams to create and assign tasks, track progress, and manage workflow

These are just a few examples of the many online collaboration tools available. It’s important to research and compare different options to find the best fit for your organization’s specific needs.

Digital adoption is not only affecting accounting processes but also having a significant impact on business processes overall. For example, automation and streamlining of accounting processes can lead to improved efficiency and cost savings. Additionally, digital solutions such as online invoicing and payments and cloud-based accounting can make it easier for businesses to collaborate with other team members and access financial information on the go, leading to improved communication and decision-making.

One of the most important benefits of digital adoption is the ability to gain real-time insights into business performance. For example, with business intelligence and analytics, businesses can analyze their financial data and make data-driven decisions. This can help companies to improve customer experience by making informed decisions and responding quickly to customer needs.  Lastly, online collaboration tools help your business share tasks, prioritize work, and communication seamlessly with your clients on projects.

What can your business do to stay ahead of the curve?

There are several things that a business can do to stay ahead of the curve with digital adoption:

1. Research and evaluate new technologies: Keeping up with the latest technologies and trends in digital adoption is important. Research and evaluate new technologies that can help your business improve its processes, such as automation, cloud computing, and analytics.
2. Invest in training and development: Digital adoption requires a significant investment in training and development, both for employees and management. This can help ensure that everyone in your organization is equipped with the necessary skills to use and benefit from new technologies.
3. Develop a digital strategy: Developing a digital strategy is crucial to staying ahead of the curve. A digital strategy should outline the goals of the business, and how digital adoption can help achieve them.
4. Create a culture of innovation: Encourage your employees to think creatively and come up with new ideas for how technology can improve your business. This can lead to a culture of innovation, where employees are more likely to suggest and implement new technologies.
5. Stay agile: Being open to change and quickly adapting to new technologies is key to staying ahead of the curve. This means being willing to try new things, and being prepared to pivot if something isn’t working out as expected.
6. Collaborate and network with others: Collaborating and networking with other companies and industry leaders can provide valuable insights into new technologies and best practices. This can help your business stay ahead of the curve and stay competitive in the market.
7. Continuously measure and evaluate your progress: Regularly evaluate your progress and the impact of your digital adoption efforts. This will help you identify areas for improvement, and make adjustments as needed to stay ahead of the curve.
8. Stay informed: Keep up to date with the latest trends, changes and best practices in digital adoption. This will help you stay informed about the latest technologies and how they can be used to improve your business.
9. Speak with an experienced digital advisor!

Why the Canada Digital Adoption Program (CDAP) is a great place for your business to start:

The Canada Digital Adoption Program (CDAP) is a great place for businesses to start with digital adoption for several reasons:

1. Access to funding: CDAP provides funding to small and medium-sized businesses to help them adopt digital technologies. This can help businesses overcome the financial barriers to digital adoption and invest in new technologies.
2. Expert guidance: CDAP provides expert guidance and support to help businesses navigate the digital adoption process. This can include help with identifying digital solutions, developing a plan, and implementing new technologies.
3. Networking opportunities: CDAP provides businesses with networking opportunities to connect with other businesses and industry leaders. This can help businesses learn from others and stay up-to-date on the latest trends and best practices in digital adoption.
4. Customized solutions: CDAP offers customized solutions to meet the specific needs of businesses. This means that businesses can work with the program to identify and implement digital solutions that are tailored to their unique needs and goals.
5. Focus on small and medium-sized businesses: CDAP is specifically designed to support small and medium-sized businesses. This means that businesses can access tailored support and resources that are specifically designed for their size and needs.
6. Encourage innovation: CDAP helps businesses to stay ahead of the curve by encouraging innovation and the use of new technologies. This can help businesses to improve their processes, increase efficiency and stay competitive in the market.

The Canada Digital Adoption Program (CDAP) provides comprehensive, tailored, and expert-led support to help small and medium-sized businesses to adopt digital technologies and stay ahead of the curve. It is an excellent place for businesses to start their digital adoption journey.

In conclusion, digital adoption is having a significant impact on accounting and business processes. Understanding digital adoption and how it’s changing rapidly in today’s business environment is becoming a key competitive advantage.. Working with Argento CPA under the Canada Digital Adoption Program (CDAP) is a great place to start since you get 90% (up to a maximum of $15,000) of the cost covered by the government! In addition, you may be eligible for a 5-year 0% interest-free loan for up to $100,000.

Contact Argento CPA today if you need help with the digital adoption program or optimizing your processes.  We are experts when it comes to digital adoption, including cloud accounting setup and ongoing IT support.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

A Registered Retirement Savings Plan (RRSP) is a type of savings account in Canada that is designed to help individuals save for their retirement. Contributions to an RRSP are tax-deductible, and the money in the account grows tax-free until it is withdrawn. In this article, we will take a closer look at RRSPs, how they work, and how they can help you save for your retirement.

What is an RRSP?

An RRSP is a type of savings account that is registered with the Canadian government. Contributions to an RRSP are tax-deductible, which means that you can deduct the amount of your contributions from your income when you file your taxes. The money in the account grows tax-free until it is withdrawn, which means that you will not have to pay taxes on any interest, dividends, or capital gains earned on the money in the account.

Types of RRSPs

There are two main types of RRSPs: individual RRSPs and group RRSPs. An individual RRSP is a plan that is set up and owned by an individual, while a group RRSP is a plan that is set up and owned by an employer or other organization for the benefit of its employees.

Advantages of RRSPs

One of the biggest advantages of RRSPs is the tax-deductible contributions. For example, if you make a $1,000 contribution to an RRSP and you are in the 30% tax bracket, you will save $300 in taxes. Additionally, the money in the account grows tax-free, which means that you will not have to pay taxes on any interest, dividends, or capital gains earned on the money in the account.

Another advantage of RRSPs is that they can be used to save for a variety of different goals. For example, you can use an RRSP to save for a down payment on a house or to pay for your child’s education.

What kind of investments you can hold in a RRSP

There are also different types of investments that you can hold in an RRSP, such as stocks, bonds, mutual funds, and GICs. This allows you to diversify your portfolio and potentially earn a higher return on your investment.

When to invest in a RRSP

One of the most important things to keep in mind when saving for retirement is to start early. The earlier you start saving, the more time your money has to grow and compound. Additionally, it’s essential to make sure that you are contributing enough to your RRSP to take full advantage of the tax benefits and meet your retirement goals.

Downsides to RRSPs

While Registered Retirement Savings Plans (RRSPs) offer many benefits for saving for retirement in Canada, there are also some downsides to consider before investing in one.

One of the downsides is the contribution limit. The Canadian government sets a limit on how much you can contribute to an RRSP each year based on your salary income, and if you exceed this limit, you will be subject to penalties and taxes.

Another downside is that RRSPs have a maturity date, which is typically the year you turn 71. At this point, you are required to convert your RRSP into a Registered Retirement Income Fund (RRIF) or purchase an annuity. This can be a disadvantage because it limits your flexibility and options for managing your retirement savings.

RRSPs also have a withholding tax on withdrawals, which can impact the amount of money you receive when you withdraw from your RRSP. The government requires a percentage of the withdrawal to be withheld for taxes. The percentage varies depending on the amount withdrawn, but it can be as high as 30%. This can reduce the amount of money you receive, especially if you are in a higher tax bracket.

Conclusion

In conclusion, a Registered Retirement Savings Plan (RRSP) is a powerful tool for saving for retirement in Canada. The tax-deductible contributions and tax-free growth of the money in the account can help you save more for your retirement. Additionally, RRSPs can be used to save for a variety of different goals and offer different types of investments. It’s essential to start saving early and to make sure that you are contributing enough to your RRSP to take full advantage of the tax benefits and meet your retirement goals.

Contact Argento CPA today if you need help optimizing your RRSPs. We are tax experts when it comes to tax planning and ongoing support.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

Online bookkeeping is the process of maintaining and organizing financial records digitally, as opposed to traditional paper-based methods. It uses cloud-based applications such as QuickBooks, Xero, or other online bookkeeping software to record, store, and track financial transactions. This includes recording income, expenses, payments, and other financial transactions. The software allows users to access the information from anywhere, which makes it easy to share financial data with accountants, bookkeepers, and other members of the organization. Online bookkeeping also enables automation of certain tasks, such as bank and credit card account reconciliation, and the generation of financial reports such as income statements and balance sheets.

Automation!

Online bookkeeping software can automate a variety of tasks, including:

1. Bank and credit card account reconciliation: Transactions can be automatically imported and categorized, saving time and reducing the risk of errors.
2. Invoicing and billing: Software can automatically generate invoices and send them to customers.
3. Payment processing: Software can accept payments electronically, reducing the need for manual data entry.
4. Financial reports: Many online bookkeeping software offers a wide range of financial reports, such as income statements and balance sheets, that can be generated with just a few clicks.
5. Reminder for bills payments: Some software has reminder for bills payments, recurring transactions, and other financial tasks.
6. Budgeting and forecasting: Some software allows you to create budgets and forecast future financial performance, which can help you make more informed decisions about your business.
7. Automatic categorization of transactions: Software can automatically categorize transactions based on the merchant name, type of purchase, or other criteria, making it easy to track expenses and monitor your spending.

By automating these tasks, online bookkeeping software can save businesses time and reduce the risk of errors, allowing them to focus on other important aspects of their operations.

Reconciling

Reconciling your online bookkeeping is an essential step in maintaining accurate financial records for your business. It involves comparing your bank and credit card statements to the transactions recorded in your online bookkeeping software to ensure that they match and all transactions are accounted for. In this blog post, we will explore why reconciling your bookkeeping is important and how it can benefit your business.

Why reconciling matters

One of the most crucial reasons to reconcile your online bookkeeping is to ensure the accuracy of your financial records. By comparing your bank and credit card statements to the transactions recorded in your online bookkeeping software, you can identify and correct any errors or discrepancies. This can prevent inaccuracies in your financial reports and can help you make more informed decisions about your business.

Reconciling your bookkeeping can also help you identify and prevent fraud. By regularly reviewing your transactions, you can spot any unusual or suspicious activity and take action to prevent it. This can help you protect your business from financial losses and can prevent damage to your reputation.

Reconciling your bookkeeping can also help you identify opportunities to improve your cash flow. By regularly reviewing your transactions, you can identify patterns and trends in your spending and revenue, which can help you make more informed decisions about how to manage your cash flow. This can help you improve your financial stability and can help you take advantage of opportunities to grow your business.

Additionally, reconciling your online bookkeeping can help you stay compliant with tax laws and regulations. By ensuring that your financial records are accurate, you can ensure that you are reporting your income and expenses correctly, which can help you avoid penalties and fines.

Accurate financial reports

Accurate financial reports are crucial for any business, and online bookkeeping is an essential tool to generate them. They provide business owners with a clear and detailed overview of their financial situation and can be used to make informed decisions about their operations. Without accurate financial reports, businesses may make decisions based on inaccurate or incomplete data, which can lead to financial losses and poor performance. By using online bookkeeping software to generate financial reports, businesses can ensure that the data is accurate and up-to-date, which can help them make informed decisions about their operations and stay compliant with tax laws and regulations. In short, accurate financial reports generated from online bookkeeping are the foundation for a business to make sound financial decisions and grow in the long run.

Why you need an experienced accountant to help with your online bookkeeping

An experienced accountant can be a valuable asset when it comes to online bookkeeping. Here are a few reasons why:

1. Expertise in accounting and tax laws: An experienced accountant has the knowledge and expertise to ensure that your bookkeeping is done in compliance with accounting and tax laws, which can help you avoid penalties and fines.
2. Customization: An experienced accountant can help you customize your online bookkeeping system to fit the specific needs of your business, which can improve the efficiency and effectiveness of your financial operations.
3. Reconciliation: An experienced accountant can help you reconcile your bookkeeping with your bank and credit card statements, which can help ensure the accuracy of your financial records.
4. Reporting: An experienced accountant can help you interpret and analyze the financial reports generated by your online bookkeeping software, which can help you make more informed decisions about your business.
5. Support: An experienced accountant can provide ongoing support for your online bookkeeping, which can help you troubleshoot and resolve any issues that may arise.
6. An experienced accountant can help you set up your bookkeeping system in a way that will save you time and money in the long run by providing you with the best software and platforms options.
7. An experienced accountant can help you plan for tax season and ensure that you are taking advantage of all available deductions and credits.

In summary, an experienced accountant can provide valuable assistance when it comes to online bookkeeping. They can help ensure compliance with accounting and tax laws, customize the system to fit your business’s needs, reconcile your bookkeeping with bank statements, interpret financial reports, provide ongoing support, and help you save time and money.

Contact Argento CPA today if you need online bookkeeping.  Our team are experts when it comes to online bookkeeping setup and ongoing support.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

The government of Canada has earmarked $4 billion to fund Canadian small businesses with grants and loans to help them become more competitive in the global marketplace. To get approved for this grant, you need to work with a government-certified digital advisor who can help you through the process of creating a digital adoption business plan.

To obtain the $15,000 grant, you will work with a certified digital advisor to create a business plan around digital adoption. The plan will cover two main things.

1. Digital Assessment
2. Digital Strategy

Digital assessment

Successful organizations are embracing technology and finding new ways to implement it and improve key metrics like EBITDA. With a digital assessment, you will get a 360-degree bird’s eye view of where your company stands across all areas of your business, such as accounting, operations and processes, sales and marketing, and information technology.

The following are the components of a successful business plan assessment:

SWOT analysis: Identifying your strengths, weaknesses, opportunities, and threats will help clarify the state of your company. This textbook procedure outlines where your company stands in the marketplace and gives you a great starting point to generate ideas for an action plan.

Identify external issues and business goals: What are your business goals? What are you trying to achieve in the next 3 and 1 years? Break down the external marketplace components and competitors competing with you and your business goals. Then, outline your business model and gain clarity on your current value proposition.

Key technology: What technology are you using? How does that technology help your business, and are there any redundancies?

Roadmap/action plan: What needs improvement in your business? When is it going to happen, and what will it cost? A prioritized roadmap will help get buy-in from your team and increase the likelihood of successful implementation and execution of your business plan.

Digital strategy

You have identified many things that need to be improved or implemented over time. Are there themes to the action plan items? Breaking down all your potential improvement opportunities into themes will help you prioritize and lump similar tasks together, resulting in higher levels of success when it comes to the execution of the business plan.

The following are components of a successful strategy plan:

Vision: The purpose of a vision statement is to clarify what you are trying to achieve with the strategic plan at the highest level. This will align your organization with the objectives set out in the plan.

Strategic themes: Listing out the top three to four strategic themes will help you categorize your action plan items and help guide you to scope the projects that must be executed to achieve your strategic vision.  

Solutions and projects: You must dive into specific solutions to your organization’s problems. 

What will the solution cost? What’s a priority? There are many ways to solve a problem, but you need to research and compare the best solutions for your situation.

Communication: How often will you communicate with your team, and in what format? In what format will information be shared and saved? It’s crucial to set expectations for communication so that the team can stay aligned and on schedule with the execution of the plan.

Accountability: Who is responsible for what tasks in the execution? Every deliverable you identify in the strategic plan must have someone accountable for its execution. Accountability is necessary because it removes bottlenecks that prevent the successful implementation of plans and help share the load of work between responsible parties.  

Measurables: What are the key measurables that you will use to monitor your success and ensure that the strategic plan has been implemented and successful? How will you know this plan worked? Set measures for success while preparing your plan so that you know when it’s working.

Challenges: In boxing, it’s the punch you don’t see coming that knocks you out. Take time to identify potential challenges that could pop up and prevent you from execution. Think about what could go wrong with the plan and what you will do if these challenges arise. The most significant barriers to successful execution are often time, money, and the right people in the right seat to help with the project. Do you have the capacity to execute?

Overall, with a successful digital adoption business plan, you will lay out the foundations for execution. You will work on two main components: the assessment and strategy. If you plan well and work with an experienced advisor like us, we can increase the likelihood of your success by working with you to create a strategy that will transform your business and help you achieve your goals.

Contact Argento CPA today if you have any questions or looking for expert advice.  The government will cover 90% of the cost to create this digital adoption business plan and you may be eligible for up to $100,000 as an interest free loan that is not repayable for 5 years.  Take advantage of this government program while it lasts!

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

More and more businesses understand the advantages of choosing the right cloud software. The cloud can improve efficiency, scalability, and security for any organization. However, with such a wide variety of options on the market, it may take time to decide which is best suited for you.

What is the cloud, and why should your business use it

The cloud is a remote computing system that allows users to access and store data and applications online instead of on physical storage devices. It eliminates the need for hardware, software, and maintenance costs associated with traditional IT systems, making it an attractive and budget-friendly option for businesses of all sizes.

There are many reasons why your business should use the cloud. The cloud can help you work smarter and faster by providing access to your data and applications from any device, anywhere in the world. It can also help you scale your business quickly and easily by allowing you to add or remove resources as needed. And with the increasing number of cyber threats, cloud software can help keep your data safe and secure.

The different types of cloud systems

Three types of cloud options are available, each with its own set of benefits and drawbacks. The most common type of cloud software is called Software As A Service (SAAS). This service simply provides access to a program hosted on the providers’ system, typically accessed by a web browser (for example, Gmail or Quickbooks Online).

The second main category of cloud software is Platform As A Service (PAAS). PAAS provides the infrastructure to create and run applications on the provider’s system. Usually, developers use it to build apps that can take advantage of the cloud’s scalability and efficiency.

Finally, Infrastructure As A Service (or IAAS) is software that allows you to rent computing resources from the provider—typically used by businesses that need to scale their computing resources quickly and easily.

So, how do you choose the right cloud software for your business?

When choosing the right cloud software for your business, it is vital to consider your organization’s specific needs. Some software options may be better suited for businesses that need to store a lot of data, while others may be better for businesses that need to access their data from anywhere in the world.

Another critical factor is how other businesses have fared using the software. Talk to other owners that have used it and get their feedback. This can help you make a more informed decision about which cloud-based software is right for your business.

Finally, look at only a few options at a time. Evaluating too many at once can be overwhelming and might lead to a decision based on something other than facts. So instead, choose two or three options and evaluate them before making a decision.

Consider what kind of data you’re outsourcing and where it is stored

When choosing the right cloud software to use for your business, you must consider the type of data you’re outsourcing. If you’re handling sensitive or confidential data, it is critical to ensure that the provider has security measures.

The provider you choose should be SOC2 compliant. This certification shows that the provider has met security and compliance standards.

The SOC2 report is a document that provides detailed information about how the provider meets these standards. Therefore, it is important to review this document(or have an experienced professional familiar with this type of document review) before deciding which provider to use for your business.

Make sure to ask the software provider about their data storage security measures and do some research on that company (Sales reps will typically disclose after prompting the recent security breaches their company may have had.).

Tips for using cloud software successfully in your business

When choosing the right cloud software in your business, there are a few things to keep in mind to succeed. First, ensure that everyone in your organization is on board with using the software. This includes employees, management, and any other stakeholders.

Second, make sure you have a plan for how the software will be used, including figuring out which applications or data will be stored in the cloud and setting up protocols for accessing it.

Finally, be prepared to adapt as needed. The cloud is a flexible technology and can be adapted to meet the needs of your business. If something needs fixing, feel free to change course and find a solution that does work.

When you’re using a cloud service, who owns my data, and who is responsible for it?

The answer to this question can depend on the type of cloud software that you’re using.

Your data is important, and you should be sure that you trust the company you’re entrusting with it. It’s important to ask who owns your data and what they plan to do with it. Some companies will sell your data to third-party vendors, while others will use it for marketing purposes. Be sure to understand the company’s policies on data ownership before deciding whether or not to use their cloud software.

Ultimately you are responsible for the data you input into any cloud system. So ensure you are adequately informed about your storage choices.

Backup

One of the key benefits of using cloud software is that your data is stored off-site, which can offer increased security and disaster recovery. However, it is essential to remember that you are still responsible for backing up your data.

You could lose your data if something happens to your provider’s data center. Therefore, it is important to have a backup plan in place. Your backup plan should include both on-site and off-site backups.

When choosing a cloud provider, ask about their data backup and disaster recovery plans. Make sure that these plans meet your needs and are feasible for your business. Often there are third-party solutions that offer integration with popular cloud platforms for backing up your data.

Take a slow approach to the adoption of cloud apps

Cloud app creep the term used to describe the tendency of businesses to gradually move more and more of their operations to the cloud. This can be a great thing for businesses, as it can provide a number of benefits, such as increased efficiency and scalability.

However, it’s important to know the risks associated with cloud app creep. These risks include data security breaches and loss of control over company data.

Another double-edged sword when using cloud products is their ease of deployment. This is good, as it allows you to add resources as you need, but also bad as you could see your IT costs balloon to an unsustainable point quite quickly.

It’s important to carefully evaluate the risks and benefits of cloud-based software before adding more operations to the cloud. In addition, it is vital to review your bills monthly to monitor changes in your services.

In conclusion

When it comes to choosing the right cloud software, there are many different options available, and it is not easy to pick the right one for your business. In this article, we’ve provided tips for using cloud software successfully in your business and outlined some things to keep in mind when making that decision. We also discussed who is responsible for your data when using cloud software and what you need to ask before deciding which provider to use. Finally, we advised caution when adopting cloud apps and moving carefully to avoid potential risks.

With the expansion of available cloud technologies, making an informed decision takes time and effort. Make sure to speak with an advisor familiar with the products you’re looking into before making a purchase.

Back