The Profitability Advisor
2017 Federal Budget Eliminates WIP Deduction for Professionals
As many of you may be aware, it is common practice for designated professionals (accountants, lawyers, doctors, dentists, etc.) to deduct their work in progress (“WIP”) in the calculation of taxable income. This implies that in general, all labour related costs with work not invoiced yet will be deducted for the purpose of taxable income. However, no associated revenue will be recognized, perhaps until the following year or so, when it is eventually invoiced.
Should you incorporate your small business?
This is a difficult decision that many small business owners face at the start of their business or when they experience early growth.“When is the right time to incorporate and what does this mean? And if not, how should I structure my business?”Well, first you need to know the different structures a business can take shape and the right structure will depend on many different factors that are specific to your situation.
Possible Pitfalls Arising Due to Foreign Fund Transfers into Canada
When not properly reported, the CRA views money coming into Canada from any other country as income. You may have moved to Canada from your home country recently or you may not have ever visited your country of origin.
New Year No Fear: How to set business goals and attain them
In the business industry, we see the same fate of small to medium-sized business owners, where they attempt to set goals for the new year, but fail at implementing them in the long run.
How to Overcome the Challenges in the Construction Industry
Construction is one of the fundamental industries in Canada when regarding economic growth. When assessing the construction industry in 2010, data from Statistics Canada shows that “residential, non-residential and engineering, repair and other construction services accounted for 6.0% of Canada’s gross domestic product (GDP), contributing $73.8 billion.”
Poor Inventory Management Is Eating Up Your Profits And Taking Cash Out Of Your Hands
Did you know that poor inventory management can lead to an overall decrease in your profits affecting the amount of cash you have on hand? Well, if you’re like Peter*, you might have had to learn that the hard way.Peter and I met earlier this year after one of my clients referred him to me in hopes that I could detect what was causing his profits to decrease.
The Sales Numbers Look Great but You Can’t Afford a Vacation? When Sales Success Does Not Equate To Profitability
As a profitability advisor I am often approached by manufacturers who have this problem, they have lots of sales but very little gross profits and are wondering why?
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