A bookkeeper is one who takes care of the bookkeeping function of an organization. An online one, is just that, a bookkeeper that works with clients online. An online bookkeeper is deemed a "more modern" bookkeeper because online bookkeeping is a relatively new type of bookkeeping. Bookkeeping used to be done using actual books, only physical invoices, receipts, purchase orders and other physical, financial related documents, and it was very tedious and took a lot more time to process these documents compared to how fast they can be processed today.
A modern bookkeeper is one who uses the "most advanced" accounting technology for your specific industry thats available.
Bookkeeping and accounting are intertwined in the sense that a bookkeeper may perform full cycle accounting where an accountant does not usually do any day-to-day processing of an organization's transactions but tasked with making sure the financials are produced (Profit & Loss Statement, Balance Sheet Statement, Cash Flow Statement) and the organizations obligatory tax filings are being filed (For a corporation you need to file a T2).
Bookkeeping can be done both manually or you can subscribe to an app that takes care of your bookkeeping.
What's the difference between having a traditional bookkeeper using using a bookkeeping firm and having a bookkeeping app with added support?
Charges per hour
A number of bookkeepers
Technologically versed in limited number of apps
A person who utilizes online bookkeeping apps to prepare the bookkeeping entries and transactions for a number of clients. They may or may not complete tax returns for the company.
The type of business dictates what expenses would be included in the cost of goods sold/ cost of service category/ grouping of expense accounts. If the expense can be directly linked to the specific product, project, or activity, it's a direct expense and should be included in the COS group on the P&L.
If the expense is less correlated to the company's sales, it would be included in the operating expenses or other expense below the GROSS PROFIT calculation.
What is included in cost of sale or cost of goods group > direct expense?
An example, you own a company that produces widgets.
All the direct manufacturing, supplies, and selling expenses to get the product in hands of consumer is a direct expense.
All functions of a business can use AI
accounting, marketing, operations, HR, legal, admin, etc...
AI using team > team alone
Apps like ChatGPT are allowing for people to learn and work faster and faster.
You can start using CHAT GPT today.
WHO is the gross profit & who cares?
WHAT can you do with GP?
WHERE do you use GP numbers?
WHEN is it calcuated and used?
WHY people care about gross profit?
Not everyone, depends on factors such as size, goals, risk tolerance, and tax situation.
Tax advantage(s) and legal advantage(s).
Canada Revenue Agency: https://www.canada.ca/en/services/business/start.html
Silicone Valley Bank & Signature
Could not pay all withdrawals
Mostly US operating bank
Friday March 10th
Too many people trying to take out $$ at once.
The T1 is for all Canadian residents.
A Canadian tax form for individuals to fill out. Looks like this, trust me, it's not that complicated, and most fields probably don't even apply to your situation.
Tax filing & payment due to CRA, file online @ wealthsimple.com
Every year before end of April.
Because CRA collects money needed fund rest of the gov't.
The T1 General Income Tax and Benefit Return is a tax return form that individuals use to determine their annual tax liability and claim federal or provincial benefits, such as the GST/HST Credit.
The form summarizes the taxpayer's income, deductions, and tax payable, as computed on supporting forms and schedules, and calculates any refund or balance due.
The T1 form consists of five parts:
2) Total Income
3) Net Income
4) Taxable Income
5) Refund/ Balance owing
Online, In-person, mail, Tax professional
To ensure timely submission, the completed T1 form and any outstanding balances are due by April 30th of the following year (by June 15th for self-employed individuals or common-law partners). If these deadlines fall on a weekend or public holiday, the deadline is extended to the next business day.
Business owners need to build a company track & stay on it.
Key Performance Indicators are common statistics & ratios a company would keep track of.
Pulled from business & financial reports
Always be keeping track of KPIs and perform variance calculations.
Ensure mone is being made.
WHO needs to know?
ROI important metric for business decision makers.
WHAT is ROI?
Rerturn on marketing spend is how much profit is made from a given number of marketing cost.
WHERE can you collect this data?
Marketing ROI = SALES CHANGE/ MARKETING SPEND
WHEN should you look at Marketing ROI?
WHY pay attention to marketing ROI?
Determine what is most profitable for business.