Rent subsidy is a form of government assistance and is taxable, unless you are exempt from income tax such registered charities and not-for profit organisations. Taxable rent subsidy are as follows:

• Canada Emergency Rent Subsidy (CERS)

• Tourism and Hospitality Recovery Program (THRP)

• Hardest-Hit Business Recovery Program (HHBRP)

CRA expects every tax payer to report the subsidy on their income tax or information return for the tax year /fiscal period in which they are received.

The rent subsidy is generally considered to have been received on the last day of the claim period it relates to.

For example, if you applied for and received a rent subsidy for claim period 23 (November 21 to December 18, 2021), we would consider you to have received the amount on December 18, 2021, even if you applied for period 23 in 2022 or received your subsidy amount for period 23 in 2022

Some Canada Revenue Agency systems will be undergoing annual maintenance. As a result, the following service interruptions will occur during the time frames noted below.

These services will be temporarily unavailable from 11:00 p.m. on Friday, January 7, 2022, until 6:00 a.m. on Monday, January 10, 2022 (Eastern Time).

· EFILE online service "Transmission History"

· Auto-fill my return and Express NOA services

· Transmission web service for authorizing or cancelling a representative

The following services will be temporarily unavailable from 11:00 p.m. on Friday, January 7, 2022, until 8:30 a.m. on Monday, January 10, 2022 (Eastern Time).

· EFILE

· ReFILE

Note: There will be no interruption of service to the following EFILE online services:

· Register for EFILE

· Yearly renewal

· Account maintenance

The Canada Revenue Agency (CRA) is introducing a new, two-step verification process to make authorizing a representative using Represent a Client more efficient and secure. The new process makes it easier for clients to confirm who has access to their personal and tax information, helping them play an active role in protecting their information. Whether your client is an individual or a business, they can now verify who has access to their personal and tax information by signing in to My Account or My Business Account, without waiting for a confirmation call from the CRA.

The new process applies to all new authorization requests submitted through Represent a Client, including when you have a new client or when you are requesting a higher level of access to an existing client's information. If you already have a client's authorization and do not need to change your level of access, you will not be affected.

How it works:

1. The first step is making sure your client has My Account or My Business Account. If they haven't used the CRA's digital services before, they will need to register for an account. We have created two step-by-step videos that walk through the process of registering. We encourage you to share these videos with your client.

· How to Register for My Account

· How to Register for My Business Account

2. Once registered, we recommend your client enables email notifications to make sure they are notified when they receive a new authorization request. Find out more about how to enable email notifications for individuals or businesses.

3. Sign in to Represent a Client and open a new authorization request. You will need to submit a certification page signed by your client using our "Submit Documents" service in order to complete the request. 

#Cash Flow

Most start ups and small businesses do not pay attention to their cash flow because they do not have an accounting department to prepare the statement of Cash flow showing how cash flows in and out of the business. The consequence is that sooner than later, they become cash strapped and may not be able to meet the working capital needs. Long term issue of cash mismanagement will lead to inability to meet obligations to both vendors and employees and invariably to insolvency. Getting your accountant/bookkeeper to prepare statement of cash flow at least on quarterly basis guarantees that your cash flow in flow and out flow is properly monitored.

#Budgeting

Budget is the backbone of a business. It trims, waste and check overspending. Operating a business without a budget is like giving a shopaholic a blank cheque or credit card for shopping. Every business should have a capital and operating budget. Like an employee on salary. The operating budget of a company equals to its salary. It should be used prudently and judiciously to run the business of the company in order to achieve growth.

#Loan Interest and Other Charges.

Lack of attention to loan and interest charges is a risky way to run business. A lot of businesses take off by being highly leveraged. There is nothing wrong with this, but it must be prudently targeted to investment with reasonable ROI – Return on investment. So that the principal would be repaid quickly. Loan interest and other monthly charges may prove to be too much drain on a small business and may eventually ruin the business if it is not properly managed. One of the steps to salvage this type of situation is to go for debt consolidation and restructuring with the most lenient lender if the business has taken loan from a lot of lenders

#Investing in Big Purchases Early 

Investing in big purchases early in business may not be  ideal for every business. It is a red flag for a company to be heavily indebted before it has chance to make a good impact and reputation in the industry. This will affect its debt equity ratio for future borrowing and my invariably hamper it's chances to grow by leverage when it has gathered enough industry experience to venture into big deals. For guidance, debt equity ratio varies from industry to industry. The consensus is to keep it at a max of 2.0 level. However, some industries that uses heavy duty assets like the mining and exploration industries have higher debt ratio that may be greater than 2. To know how to guard your debt-to-equity ratio, your accountant will help you to keep track of it.

#Be Prepared for Recession

Not Preparing for a Period of Scarcity in your business is like not preparing for rainy season or for rain when your roof is damaged. Start with small achievable goals one step at a time. For example , having a business reserve of at least 6 months worth of business expenses in cash or near cash for the rainy days is reasonable. 

Knowing how to manage business cash flow in times of scarcity is very essential and a must have skill for every business owner who wants to achieve growth in his business . In this blog , we have included  8 Tips for Managing Business Cash Flow in Times of Scarcity. Please click below to download PowerPoint presentation on the topic.

The Minister for finance has announced  Government's  intention to give additional support to hard-hit businesses  and organisations experiencing a drop in their revenue.This new  legislation, will help businesses to go through the second wave of covid-19 and the winter costs so that they will continue to serve their communities and be positioned for a strong recovery .

• The new Canada Emergency Rent Subsidy, which would provide simple and easy-to-access rent and mortgage support until June

2021 for qualifying organizations affected by COVID-19. The rent subsidy would be provided directly to tenants, while also providing

support to property owners. The new rent subsidy would support businesses, charities, and non-profits that have suffered a revenue

drop, by subsidizing a percentage of their expenses, on a sliding scale, up to a maximum of 65 per cent of eligible expenses until December 19, 2020. Organizations would be able to make claims retroactively for the period that began September 27 and ends

October 24, 2020.

•  A top-up Canada Emergency Rent Subsidy of 25 per cent for organizations temporarily shut down by a mandatory public health

order issued by a qualifying public health authority, in addition to the 65 per cent subsidy. This follows a commitment in the Speech

from the Throne to provide direct financial support to businesses temporarily shut down as a result of a local public health decision.

• The extension of the Canada Emergency Wage Subsidy until June2021, which would continue to protect jobs by helping businesses

keep employees on the payroll and encouraging employers to rehire their workers. The subsidy would remain at the current

subsidy rate of up to a maximum of 65 per cent of eligible wages until December 19, 2020. This measure is part of the

government’s commitment to create over 1 million jobs and restore employment to the level it was before the pandemic.

•  An expanded Canada Emergency Business Account (CEBA),which would enable businesses, and not-for-profits eligible for

CEBA loans—and that continue to be seriously impacted by the pandemic, to access another tranche of interest free loan up to $20,000 in addition to the original $40,000. half of this additional financing would be forgivable if repaid by December 31,2022

• In Addition, the application for CEBA is being extended to December 31,2020 .

Source- CRA Website.

As part of an educational campaign by the Processing Review Program, educational letters have been sent to some taxpayers who may have claimed certain tax credits or deductions on their income tax return. The letters are intended to educate the taxpayers on how to:

• claim an amount for a specific credit or deduction

• support their claim, if their return is selected for review in the future

• ask for an adjustment to their return, if they want to change their claim

A reply is not required to the letters. If the taxpayers want to change their returns or have questions, the letters include related information and a toll-free number.

The Government of Canada has announced a one-time payment of $600 to help persons living with disabilities, in recognition of some of the extraordinary expenses they have encountered during the COVID-19 pandemic. Individuals who are determined to be eligible for the disability tax credit (DTC) or certain other disability-related benefit programs, may be entitled to receive the payment.

Canadians living with disabilities who are eligible for the DTC but who have not yet applied, will have until September 25, 2020 to do so. For more information on how to apply for the DTC, please visit: http://www.canada.ca/disability-tax-credit.

Recipients of the payment are encouraged to make sure their address and banking information is up to date in order to receive prompt payment. For callers who need help with changing their address, updating direct deposit, accessing My Account, or questions related to the DTC or their application, they can call CRA's Individual Enquiries Line at 1-800-959-8281 (English) and 1-800-959-7383 (French) between 9:00 a.m. to 5:00 p.m. (local time) Monday to Friday.

If you want to know more about the One-time payment support for Canadians living with disabilities, please visit:

https://www.canada.ca/en/services/benefits/covid19-emergency-benefits/one-time-payment-persons-disabilities.html

We are  responding  to the outbreak of COVID-19, and our thoughts are with the people affected and the medical professionals working around the clock to keep us well. At At Beacon Accounting Services, we are doing  our best by ensuring the safety of our employees, striving to protect the health and well-being of the communities in which we operate, and providing Bookkeeping and Accounting, tips and resources to help our clients run their businesses successfully.

Here are 7  things we are doing to make sure our clients and staff are safe:

1. Our Office Is cleaned by electrostatic disinfectant
2. We wear mask in the office,
3. We wear sanitize gloves before we touch clients documents
4. We keep our hands sanitized
5. We maintain social distance
6. We meet mostly by zoom
7. We work remotely

10 Tips for Managing Business Cash Flow

Tip #1. Control credit

It is all about getting paid as soon as possible. It is important to put some procedures in place such as:

 Setting clear credit limits and payment terms for your customers

 sending out invoices promptly,

 firmly chasing all debts when due.

 Constantly monitoring customer payments

 stop offering credit to bad payers.

This week, the Government of Alberta announced that Alberta is moving into Stage 2 of the relaunch strategy sooner than expected, due to low numbers of COVID-19 cases. Starting today, June 12, more businesses, sport, and recreation services can open and some larger gatherings will be permitted. ⁣

The Government of Canada has announced an expansion to the eligibility criteria for the CEBA to allow more Canadian small businesses to benefit from the interest-free loans.

 This expansion will make the CEBA available to more businesses that are sole proprietors receiving income directly from their businesses, businesses that rely on contractors and family-owned corporations that pay employees through dividends instead of payroll.

To qualify for the CEBA, applicants with payroll lower than $20,000 would need the following:

• A business operating account at a participating financial institution

• A Canada Revenue Agency (CRA) business number and to have filed a 2018 or 2019 tax return

• Eligible non-deferrable expenses between $40,000 and $1.5 million. Eligible non-deferrable expenses could include costs such as rent, property taxes and insurance.

Source: https://www.canada.ca/en/department-finance.html

To support small businesses and not-for-profits affected by Covid-19

This Program is meant to help businesses to pay non-deferral operating expenses and quickly return to providing services to your community and create employment

Up to $10,000 loan forgiveness

By repaying 75% of your loan on or before December 31, 2022, you can keep the remaining 25% (up to $10,000)!

Flexible terms

If the loan cannot be repaid by December 31, 2022, it can be converted into a 3-year term loan with an interest rate of 5%.

Repay at your pace

Principal payments can be made at your pace, without fees or penalties, by December 31, 2022.

Fast and easy

Applying is fast and easy. Contact your primary financial institution today.

For more details on the Canada Emergency Business Account,visit the Government of Canada’s website

Is my business eligible?

Below are some of the eligibility criteria

Is my business eligible?

Your business is Canadian-based and in operation as of March 1, 2020

The business’s 2019 payroll was between $20,000 and $1.5 million

The loan is used to continue or resume operations

You have not previously used the program and will not apply for it at a different financial institution

The business has a federal tax registration

Visit the Government of Canada’s website for the complete information.

Dear Customer,

With the ongoing COVID-19 situation, we are working remotely to ensure the health and safety of the public and our team members in accordance with social distancing safety guidelines. We are closely monitoring the situation and adjusting our business practices rapidly as required.

At Beacon, the health and safety of our team members are our priority. As such, we have implemented a contingency plan allowing our employees to work remotely. You are also welcomed to drop your boxes of documents at our office as well. We are taking every step to ensure that all customer service continue to be available to you.

Along with the usual means of contacting us, we invite you to:

Facebook: https://www.facebook.com/beaconaccountingservices

Twitter Handle: https://twitter.com/Beacon_accountg

Instagram: https://www.instagram.com/beaconbookkeepingservices/

In this unique time, our team remains committed to assisting you virtually, and providing the same services and support you expect from us.

We thank you again for your loyalty and continued trust.

Management

If you started and haven't completed your tax return, it's never too late. In fact, the filing due date is June 15, 2020 for self-employed individuals and their spouses.

Any balance owing has been extended to September 1st, 2020.

If you've already filed and have yet to receive your refund, be sure to visit this page from the CRA or from Revenu Québec for refund status information.

Canada's Covid-19 Economic Response Plan

Support for businesses

To avoid layoffs, rehiring employees and creating new jobs,the government of Canada has put in place the following financial supports to help business:

1.Canada Emergency Wage Subsidy (CEWS)

The government is covering 75% of an employee's wages – up to $847 per week - for eligible employers. The CEWS will allow you to re-hire your employees and avoid layoffs during the crisis.The program will be in place until August 29.

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

2.Temporary 10% Wage Subsidy

The Temporary 10% Wage Subsidy is a three-month measure that allows eligible employers to reduce the amount of payroll deductions required to be remitted to the Canada Revenue Agency.

https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/frequently-asked-questions-wage-subsidy-small-businesses.html

3.Extending the Work-Sharing program

We have extended the maximum duration of the Work-Sharing program from 38 weeks to 76 weeks for employers affected by COVID-19. This measure will provide income support to employees eligible for Employment Insurance who agree to reduce their normal working hours because of developments beyond the control of their employers.

https://www.canada.ca/en/employment-social-development/services/work-sharing/notice-covid-19.html#_Employers

4.Creating new jobs and opportunities for youth

We are creating up to 116,000 jobs, placements, and other training opportunities to help students find employment and develop valuable skills this summer and over the coming months.

We also made temporary changes to the Canada Summer Jobs program to allow employers to:

receive an increased wage subsidy, so that private and public sector employers can also receive up to 100 % of the provincial or territorial minimum hourly wage for each employee;

extend the end date for employment to February 28, 2021;

adapt their projects and job activities;

hire staff on a part-time basis.

Learn more about the various programs:

Canada Emergency Wage Subsidy (CEWS)

https://www.canada.ca/en/revenue-agency/services/subsidy/emergency-wage-subsidy.html

Canada Summer Jobs program (Calls for applications closed)

https://www.canada.ca/en/employment-social-development/services/funding/canada-summer-jobs.html

Youth Employment and Skills Strategy (Calls for applications closed)

https://www.canada.ca/en/employment-social-development/programs/youth-employment-strategy.html

Student Work Placement Program

https://www.canada.ca/en/employment-social-development/programs/work-integrated-learning.html

Mitacs

https://www.mitacs.ca/en

Business + High Education Roundtable

http://bher.ca/