Entities other than individuals usually legally require some form of accounting system to track the financial aspects of their activities. Maintaining a smooth consistent accounting system is the first step towards making sound business decisions and maximizing the potential of a truly successful operation. Benefits include stability, growth and prosperity of a business which ultimately translate to wealth or enrichment of the stakeholders, not to mention a great public image! For better results, we recommend coupling our consulting services with our accounting services. For the most optimal results, why not let us include our tax services for solid backing so that you can worry less and keep your focus on operational goals.
Individuals – What is an ?
Estates & trusts – What is an ?
Common organization types:
Corporations – What is a ?
Not for profits – What is a ?
Sole proprietorships/partnerships – What is a ?
Accounting and consulting services offered:
For organizations For individuals For estates & trusts
In common everyday language, an individual is usually considered to be a human person. However, in the eyes of tax law, an individual can be defined as a human person or an estate or trust. Business organizations (ie. corporations, estates, trusts, not-for-profits, sole proprietorships, partnerships, etc.) are ultimately controlled by human people, whether directly or indirectly. The question of “Who is the taxpayer in this situation” (ie. a human person or another entity) can be dependent on a number of factors.
An estate is the collection of all property and assets owned by a person, often at death, which are set to be distributed according to a legal document, typically the person’s will. A testamentary trust is formed when these property and assets are transferred to a third party (trustee) for the purpose of distributing them to the beneficiary(ies). For example: An investor passes away, leaving a portfolio of stocks and bonds behind. The trust is formed upon his death, and title to the portfolio is transferred to the trustee who will administer the portfolio for the benefit of the deceased’s children. A common question that arises is who gets taxed on the investment income earned after death – the deceased, the trust, the trustee, or the beneficiary(ies). Sometimes there is no estate when a person passes away, and sometimes there is no trust. These things can get tricky sometimes. There are also many types of inter-vivos trusts which are established during one’s lifetime.
A corporation can be defined as a legal entity separate from its owners, formed for the purpose of conducting a business. Canadian corporations, also called “companies”, often enjoy lower income tax rates compared with sole proprietorships or partnerships. It is important for a corporation to use an accounting system to help with financial reporting, but it is equally important for that system to be able to help make decisions about the future of the business.
A not-for-profit organization can be defined as an organization engaging in activities that benefit one or more individuals, groups or causes without the goal of earning or distributing profits. Common examples of such activities include animal rescue, feeding the homeless, running a parent-participation preschool, and organizing a sporting event. Proper accounting is a very important step towards compliance and maintaining the not-for-profit status. We can be involved with your not-for-profit organization as little or as much as you need.
A sole proprietorship is a business formed with little to no formalities by a person where there is no legal distinction between the owner and business. Sole proprietorships are often home businesses, but not always. A partnership is similar to a sole proprietorship, except that there is more than one owner involved. Treatment of tax on income is different with a sole proprietorship or partnership compared with a corporation.
