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| ACCOUNTING |
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Our
principal objective of any accounting engagement is to ensure that you have
the necessary information to make quality decisions, and the best way to
achieve this is to initiate a planned program for record management. |
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As
a result, don’t be fooled in thinking that its alright for you to operate a
business without adequate records which are a vital integral part of any
business. Many have made this fatal mistake, only to find out that they should
have instituted measures to initiate a planned program to create a workable
record management system.
Revenue
Canada’s rules
and regulations are on the increase every day and they have made it very clear as
to how they want us to maintain records and receipts for assessment and/or
auditing purposes. Unfortunately, many business owners have taken these rules
and regulations for granted. As a result, many have found themselves
buried in a costly unworkable swamp of paper during a re-assessment and/or
audit, (which
is very dangerous to the
business).
During
the past few years, we have found that
Revenue Canada
has forced
businesses, through rules and regulations, to retain more and more records
just to stay within the letter of the law. Business owners who have chosen to
operate outside these parameters, have found that Revenue Canada spares no
mercy nor do they have a sense of humor when reviewing an unmanageable swamp
of paper. In most cases it has resulted in a
Large Re-assessment Tax Bill!
The
reason for this is simply. If,
Revenue Canada
can not verify,
determine or cross reference the origin and nature of a transaction, they
simply disallow it!
Therefore,
in our professional opinion, we highly recommend that you consider initiating
a workable record management system to satisfy the requirements of the
Canadian
Income Tax Act section
230(1), (4a), (4b).
The
alternative is to run the risk of record manipulation during a possible
re-assessment and/or audit by Revenue Canada, which usually
results in additional taxes payable.
We
provide the following record management services:
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TAXATION |
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and business enterprises operating in Canada encounter taxation from all
three levels of the Government. |
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From a business enterprises point of view, taxes represent a forced
contribution toward the expense of running our various Government
bodies. Hence, taxes are a normal expense of
earning revenues.
Persons who are resident in
Canada are subject to tax on their world income. Persons who are
not resident in Canada are usually subject to Canadian tax only on
their income from sources within Canada.
Consequently, taxation
in Canada are outrageously high! The percentage of tax that
Canadians are required to pay is completely out of hand.
Even though taxes appear to have been reduced, others are
increased and new ones are imposed. The average Canadian now
pays more than half of their earned income toward some form
of taxation. Higher income earners get stuck paying as much
as 75% of their income to Revenue Canada!
Canadians are finally beginning to express their anger and
dissatisfaction toward taxation issues. Studies conducted in
1999, found that 85% of Canadians felt that taxes was far
too high. More than 70% of Canadians agreed with the
following statements “Our tax levels do harm by
discouraging business investment” and “Taxes cause
many of our brightest young people to go elsewhere.”
The largest amount of taxes you will ever have to pay is
after your death. ESTATE TAX!
That's right ESTATE TAX! The tax that everyone thinks
does not exist in Canada.
Well, think again! Revenue Canada has now set their sights
on taxing Trusts.
However, what is tax planning, and what is tax avoidance
and/or Evasion?
Tax avoidance and tax
planning both involve tax reduction arrangements that
may meet the specific wording of the relevant legislation.
Effective tax planning occurs when the
results of these arrangements are consistent with the intent
of the law.
Which basically means if it is in keeping with the guide
lines they set out for you!
When tax planning reduces taxes in a way that is
inconsistent with the overall spirit of the law, the
arrangements are referred to as tax avoidance.
In other words, they decide what is tax planning and tax
avoidance!
The Canada Revenue Agency's interpretation of the term
"tax avoidance" includes all unacceptable and abusive
tax planning.
Aggressive tax planning refers to arrangements that "push
the limits" of acceptable tax planning.
The question
is, what can anyone do with such constraints?
Everyone complains, but this does not change the fact that
these taxes have to be paid. Additionally, the general
populous argues and expresses their frustration, but no one
is willing to take the necessary steps to correct the
problem!
Typically the majority retaliate by using methods that are
deemed as tax evasion to try to get out of paying the
amounts payable to Revenue Canada, until they get caught.
If you are one
of those who wants to make a change, there are a number of
solutions that can be legally used to combat the burden of
paying a ridiculous amount in taxes!
Seriously
people, tax planning has never been more necessary then it
is today!
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FINANCIAL PLANNING |
Financial Planning is the process of meeting the goals
in your life through the proper management of your
financial resources.
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Planning covers all matters related to your estate and
your current financial situation and includes such
elements as day-to-day cash flow management, choosing
and managing your investments, retirement and estate
planning, your insurance needs and tax planning.
Unfortunately most people over look the importance of
having a customized plan prepared for themselves and
their family.
Many painfully discover in the event of a death in the
family that a strategic plan should have been
initiated to protect the loved ones left behind.
Financial planning is the gateway to your future.
We
all face obstacles, challenges and hazards through out
our life. Therefore, when it comes to to financial
planning, take control of your financial future by
setting realistic and attainable goals to reduce the
risks caused by negative events such as death,
disability, layoffs, etc.
The
alternative is to face the ugly reality that is wait
for all those neglecting to prepare, for the
unforeseen circumstances each and everyone of us may
face in the future.
“Take
good care of your present, because your present will
shape your future, and your future is where you will
spend the rest of your life.”
Click Here To Download
Sample Copy of a Financial Plan
For a free estimate please feel
free to contact us any time.
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| BUSINESS
PLANS |
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When you are
interested in starting or expanding a business
financial institutions today request a business
plan. Business plans allow the reader to obtain a
clear view of what it is you intend on using the
monies for, and how it will benefit the business
overall. |
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Purpose:
-
Organizes your thoughts and ambitions for your
business venture.
- Uses a standardized format which can be easily
read and understood by others.
- Tests the viability of your plans.
- Helps banks and others who might lend you money.
- Provides a set of targets against which the
progress and profitability of your business
can be measured.
As with any
professional consultant, you are paying for the time
it takes to prepare the plan and for experience! We
have been writing business plans since 1990 and from
experience it typically takes about forty hours, and
in some cases sixty hours or more to complete a
business plan.
However the process does not stop there! We will
need as much information as you can give us about
yourself, your products/services, and your
business.
No doubt, you've been considering this business for
some time now; simply supply us with whatever
information you've collected.
Producing a well written business plan is not
something done over night. It is a painstaking
process, that requires careful attention to detail.
Typically, we will go through several revisions
before we are satisfied with the end result.
So, if a business plan preparer says they can write
a business plan in a few hours, BEWARE.
If you would like to prepare a business plan
yourself, you can purchase a comprehensive outline
and the necessary financial spreadsheets by clicking
on the link below.
[
Purchase
]
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INVESTMENTS |
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When choosing
a home for your finances, you will want a financial institution
that you can trust. Peter A. Kypreos, Accountant & Associates
Ltd. understands how
important it is to have a Financial Institution that you can
rely on to provide you with the reassurance you need and expect. |
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Most investments available today
are pretty much controlled by the investment company and the
details of taxation are dealt with by the use of the T5 slip
which are issued annually to the investment holders for the
preparation of their personal or business income tax returns. (RRSP's,
GIC's, Dividend's, etc...)
When businesses and individuals seek to invest outside the
country caution needs to be exercised to avoid falling
into problems with the taxation authorities.
Financial planning and proper tax planning are not about tax evasion or
criminal activity when seeking opportunities outside
the country, it is about the lawful use of outside
sources to achieve a number of financial goals, such
as, getting higher interest rates of return on
investments, asset protection from law suits, tax reduction
in the jurisdiction you are investing in,
investment diversification and estate planning.
As stated in the taxation section of this site:,
persons who are resident in Canada are subject to tax
on their world income. Persons who are not
resident in Canada are usually subject to
Canadian tax only on their income from
sources within Canada.
The tricky part is not to tax evade or tax avoid!
Investments and business transactions outside the
country are done around the world daily. However, keep
in mind there is no crime in benefiting from
opportunities offered by other jurisdictions, just
make sure you claim the income! Otherwise, you may
quickly find yourself in a tax evasion or tax
avoidance situation that could become very costly in
legal fees.
Warning!
Before venturing into investment opportunities
outside the country seek the advice from a qualified
professional who is well versed in this area. It is
not recommend that you proceed on your own
understanding, remember, as long as the taxes are paid
within the letter of the law you are pretty much able
to benefit from investment opportunities from around
the world, which in many cases are better than those
you are a custom to in North America.
As a result, we offer our clients
a unique blend of experience, expertise and innovation to better
serve each and every client should you require assistance in
this area.
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| BUSINESS
FORMATIONS |
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A Sole Proprietorship is an unincorporated business that is owned by one person.
It's the simplest form of business structure. |
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The owner of a sole
proprietorship has sole responsibility for making decisions, receives all the
profits, claims all losses, and does not have separate legal status from the
business. Sole proprietors, pay personal income tax on all revenue generated
by the business, assume all the risk of the business which extends even to
your personal property and assets.
As
a sole proprietor, you are required to register for the goods and services
tax/harmonized sales tax (GST/HST) if your worldwide annual taxable revenues
are more than $30,000.
A Partnership is defined as an
association of two or more persons carrying on as
co-owners of a business for profits. Though not
specifically required, written Partnership
Agreements are commonly prepared and executed.
This agreement outlines the contribution made by each
partner into the business (whether financial, material
or managerial) and generally outlining the roles of
the partners in the business relationship
The Corporation is the most complex of
the three business structures. A corporation is
usually formed by the approval of the Provincial or
Federal Government. Corporations which do business in
more than one Province must comply with the Federal
laws regarding inter-provincial commerce and with the
provincial laws, which may vary considerably.
Experience has taught us that when engaging in a
business venture, whether you intend on running the
operation yourself or whether you intend on having a
partner, INCORPORATE. The cost is more
expensive and like everything else in life there are
advantages and disadvantages. Overall, it is to your
advantage to incorporate when engaging in business.
There
are approximately three million companies registered in Canada as
corporation, and therefore, it is becoming increasingly difficult in
picking a unique name for your company.
P eter
A. Kypreos, Accountant & Associates has an independent search house
which is devoted to searching corporate names across Canada. Our
dependable name search house has many years of experience providing
assistance to Accounting & Law offices.
A
preliminary search helps us to make an initial check before incurring the cost
of running a NUANS report, therefore, our clients are confident in allowing us
to provide this service from the preliminary stages to the end result, which
is a six page NUANS report that is required when filing an incorporation.
Individuals
should realize that incorporations can be somewhat complex with all the
necessary documents that must be filed. Regardless of the complexities, the
Ministry Of Consumer & Business Services requires that these documents
be submitted
properly when
registering a new corporation.
For
the convenience of our Ontario customers we will prepare and file your
articles for you making the procedure fast and easy.
Each
and every corporation must have Corporate By-Laws in their minute book. Upon
filing your incorporation and receiving a CERTIFIED copy of your
Articles of incorporation, Peter A. Kypreos, Accountant & Associates will
proceed to prepare, a 28 page By-Laws No: 1, Opening Resolutions, Registers, Ledgers
and Share Certificates for your minute book
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| BANKRUPTCY |
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If you
are a resident of Canada who is unable to pay your
bills when they are due, and you have tried everything
possible to get back on your feet, it may be time to
consider bankruptcy.
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Filing
for bankruptcy is a difficult decision. It will
eliminate most, if not all of your debts, but it will
also hinder your ability to obtain credit for 7 years.
Consulting a trustee before making this decision is
highly recommended.
In some
areas of Canada you may be permitted to keep (exempt)
certain property.
Common
items for exemption include clothing, furniture,
appliances, motor vehicles, medical and dental aids, a
home, family heirlooms, and some insurance. In basic
terms, any property the debtor might require to
survive can be exempt.
The cost
of filing for bankruptcy will depend on your monthly
family income, the size of your family, and your
assets. A bankruptcy trustee can help you determine
the precise cost, and will help you understand each of
the fees.
Bankruptcy is a complex legal process and should not
be attempted alone. There are numerous bankruptcy
options available and selecting the appropriate one
could be challenging. Therefore, we strongly advise
you to contact a bankruptcy trustee in your area, or;
For more
information on Bankruptcy feel free to contact:
Peter A.
Kypreos, Accountant & Associates Ltd. who can point
you in the right direction and help you determine
which option is best for you and your family.
Application For
Bankruptcy
Peter A. Kypreos,
Accountant & Associates Ltd. works closely with a
licensed Trustee and has for several years to assist our
clients in the event that help is needed in this area.
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When it come to New
Business Start-up, business seekers need to
properly analyze exactly what it is the are
looking for, and to properly determine whether or
not this type of venture is for them or not.
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Consequently, Peter A. Kypreos, Accountant &
Associates Ltd. strategically assists
entrepreneurs to properly assess a new venture.
We guide our clients through the very processes
that are vital to the success of your business.
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Personal
Evaluation Worksheet |
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Comparison
Worksheet |
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Feasibility
Test |
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and more. |
Download Start-Up
Business Guide FREE:
Business Guide
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