The answer to that question is …Yes. Here’s how you go about doing that but remember – if you have Payroll open you can only work in the Primary company file to make changes. If you want to make changes to the secondary company file in Payroll, you will have to close the Primary company file.

Just go to File/Open Second Company. It’s that simple.

Hope that answered your question.

There is something new in the Canadian QB’s that you might be interested in and it’s called QBO (QuickBooks Online). It has been out in the U.S. since 2000 but was just released in Canada in 2012.

Canada, are you ready to move into the “Cloud Based” reality of QBO (QuickBooks Online)?

It is only about six months old, so it is still in its infancy, and but in today’s ever changing technological world, Intuit will improve on it. Also as you can appreciate, even the ProAdvisors are scrambling to get up to speed because it is so new.

There is too much to explain but in looking at QBO, I think it might be something that is of interest to you.

First of all, you would not need a server or an IT person, because QBO’s server is hosted by Intuit Canada. This is the new technology of “Cloud Based”.

The Online Plus has advantages over the Desktop version in so many ways (not just the cost) and instead of going into all of them; I will point out a few that you might be interested in.

• It has an inventory module with FIFO (first in first out)
• It has payroll
• you can have 5 users
• works on PC and Mac
• Access key features from your mobile phone (iPhone or Android)
• Automatic data backup
• free updates and new features as they become available
• it can be accessed anywhere in BC, Canada or the world
• in starting to use it, I found it pretty user friendly

All Orders by NumberCruncher and Fishbowl Inventory are both inventory and order management software that integrates with QuickBooks. Both handle order entry, purchasing, warehouse management and manufacturing. If you would go down the list of features and benefits 90% of them  would be same in both. We have a few things that they don’t have and they have a few things we don’t have. The following is a high level discussion on fundamental differences between the 2 systems.

1    Synchronization with QuickBooks

Both All Orders and Fishbowl Inventory sync with QuickBooks with one major differences; Fishbowl Inventory cannot sync with the Items in QuickBooks. Once the initial sync is done, inventory in QuickBooks is turned off. When transactions are posted from Fishbowl Inventory to QuickBooks (e.g. an Invoice) you do not see the part numbers rather you see an ‘alias’ like FB Inventory; meaning that if you want to print the invoice or run any item specific reports you MUST do so from Fishbowl Inventory.

All Orders allows you to either sync the items in QuickBooks or use aliases. If  you sync the items you will see them on all transactions, you can still print invoices from QuickBooks, print sales reports and use other integrated applications that require items in QuickBooks. With All Orders you will see a detailed breakdown of inventory by item, location, bin and serial # whereas in QuickBooks you will see the total quantity only.

2.    Work Flow and Ease of Use

All Orders was designed for ease of use and is pliable to your particular work flow whereas Fishbowl Inventory is more rigid requiring changing your work flow. All Orders looks and feels a lot like QuickBooks. This was done intentionally so that users that already know QuickBooks would find it easier to learn and use All Orders. The user interface in Fishbowl is nice but completely different than QuickBooks.

3.    Price

The initial purchase price for Fishbowl Inventory can be more than double than that of All Orders. True, we charge an annual maintenance fee, but for that you get technical support, all the new updates, and a specified number of re-training hours per year. It also makes us have better support and be more responsive because our relationship with our customers does not end at the sale it is just beginning.

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Since this Handling the BC Return to PST information is lengthy in detail, with many details and instructions, I have added the below link so that you might be able to better view what is needed to complete the QuickBooks changes to your Company File.

Make sure and do a backup before you proceed with any of the changes to your BC Sales Tax Codes. You should not have to change any of your BC Sales Tax Items, but review them just the same.

Remember to go to Sales Tax/Manage Sales Tax and make sure to Assign the proper Sales Tax Codes. Also to your Vendor List to make changes to your Minster Of Finance.

If you are uncertain or are having any troubles, remember to contact your QuickBooks Certified ProAdvisor, who can guide you through this important change for BC users.

Here is your link for Handling the BC Return to PST.

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For you QuickBooks users that are still operating with a 2010 version, here’s a important service reminder from Intuit that I am passing along to you.

Don’t forget as a Certified ProAdvisor I can offer you a 30% discount on QuickBooks 2013.

It is simple enough to misplace your receipts and documents throughout the year, especially when your business is booming. With this said, there can be drastic consequences to misplacing those pesky receipts and documents.

Both the IRS and the CRA will generally deny any expense claims against your business if you are unable to provide documentation that supports your claim. It is important to note that the use of a credit card can create an audit trail, and can also help in duplicating receipts, but is not considered sufficient evidence to support a tax deduction against your income. The only way to ensure that you take full advantage of your claims is to utilize a document management system throughout the year, organizing your files in an efficient and understandable manner.

There are many ways to organize your files, both traditionally and digitally. Keeping your documents organized in your office’s filing cabinet can be an effective way of storing your documents. Organizing files in relation to the date, job, and contract it is associated with allows you to quickly find specific files when needed.

With this said, a traditional filing cabinet has limitations. By storing your documents in a filing cabinet, you generally only have a single copy of the document. This can lead to confusion when you share the material with your bookkeeper or accountant, and can also open up problems in the case of a flood or fire.

In addition to the traditional filing cabinet, businesses are able to store files digitally, on their home or office computer systems. Although there is an added step of scanning the various files into the computer system, scanned documentation ensures that you have a digital copy of your documents on hand.

Similar to the traditional filing cabinet, creating a digital copy of your receipts and documents allow you to organize your documents in various folders, relating the receipts and documents to the specific date, job, and contract. Although this is a great way to reduce the risk of losing valuable receipts, there is still risk involved. Not only can fire and water damage wipe out your computer systems, they can also be vulnerable to computer crashes and viruses.

The last option is to store your files on a cloud-based server. Similar to storing your files on your home or office computer, cloud servers allow you to upload your documents into the system, where you are able to manage, organize, and collaborate on them.

This once again ensures that you have a digital backup of your hard copies, and also gives you the peace of mind that your information is encrypted and hosted on a secure server managed and backup up by system administrators. This technology gives you the ability to access information from any location, at any time (as long as you are connected to the internet).

When looking for a document management system, take some time to define your business needs and objectives. There are many examples of cloud-based document management systems, including DropBox and Google Drive, whom offer its customers a basic storage system designed around satisfying a generic user-base’s needs.

There are also more specific document management systems that have been designed around niche users, such as small businesses and bookkeepers. An example of this would be LedgerDocs, a document management system designed around the management, organization, and collaboration of documents between businesses and bookkeepers.

The LedgerDocs system allows for users to upload their documents via mobile, email, or scanner, and creates a space for important documents to be shared between users and easily retrieved at any time using its powerful search feature in a secure environment.

In conclusion, the traditional “filing cabinet” strategy has worked for years, but can leave businesses vulnerable to losing essential information. By creating a digital copy, you are able to access and send information quickly and efficiently, while also creating a secondary copy of your important documents.

The next step is to utilize a cloud-based document management system, allowing you to store your encrypted information on a secure and remote location. This ensures that your information is safe, while giving you the ability to access your documents at any time, in any location. By defining your business needs and goals, you will be able to develop a document management strategy that works for you, and once again focus your attention on your day-to-day business operations.

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On April 1, 2013, the provinces of British Columbia (BC) and Prince Edward Island (PEI) will be changing the way their sales taxes are administered.
In British Columbia, the 12% Harmonized Sales Tax (HST) will be replaced by the 5% Goods & Services Tax (GST) and 7% Provincial Sales Tax (PST).¹

In Prince Edward Island, the PST will be replaced by a HST rate of 14%, of which 5% will represent the GST and 9% the PST.¹
You will need to make a few changes to your existing tax codes to accommodate for these changes, but we’re here to help you through it.
Review our Support FAQs and videos on how to make the transition within QuickBooks 2013:

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Merchant Service contracts are usually lengthy, expensive to break, and you may also have to deal with the auto-renewal clauses.  But did you know, due to recent market changes, some Merchant Service Contracts can be broken penalty-free?

Here’s Why:

Excerpt:
By signing a contract with an acquirer, a merchant will have the right to cost certainty over the course of their contract. As a result, in the event of a fee increase or the introduction of a new fee, merchants will be allowed to opt out of their contracts, without facing any form of penalty, within 90 days of receiving notice of the fee increase or the introduction of a new fee. Code of Conduct For the Credit and Debit Card Industry in Canada

At Intuit, merchants have the right to cancel anytime with no penalty²
Turn on credit card processing in QuickBooks and you will enjoy the freedom to walk away from your contracts anytime with no cancellation fees. You’ll minimize admin work too, because QuickBooks processes payments and updates the company file in just one step! Try it risk- free now.  You may qualify for a $100 rebate and you can cancel anytime.

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In 2010, CRA started a letter campaign with the purpose of educating individuals about their tax obligations and to encourage taxpayers to correct errors or inaccuracies in prior year tax returns. Well, they are back.

Beginning in January 2013, CRA will send approximately 33,000 of these letters to persons that have any of the following items on their personal tax return for 2011:

• Self-Employment Income

• Rental Income

• Employment Expenses

CRA has determined that people in these groups may be at risk of noncompliance with the tax legislation and, are therefore targeting these individuals for reviews. You could be selected to receive one of these letters if you prepared your taxes yourself or even if you used a tax preparation service. If you do receive one of these letters, it does not necessarily mean that you will be audited; however, you could be audited if CRA determines your tax return contains questionable items.

What is questionable?

When CRA looks at a tax return, they look for anomalies; items that may not be reasonable in relation to tax returns filed by others in the same industry (in the case of self-employment income), unusual expenses in the case of rental income, or significantly high employment expenses for those making that claim.

For Self-employment and employment expenses, one of the most common items to be reviewed is vehicle expense claims. If you receive one of these letters, the first thing you should do is contact your local Ledgers Professional, do not, under any circumstances contact CRA before getting professional advice; many see these letters as a ‘fishing’ expedition on the part of CRA and they are trying to intimidate selected taxpayers to incriminate themselves.

When you receive one of these letters, CRA gives you 45 days to file adjustments to previous year’s tax returns by filing a T1 Adjustment Request. This letter campaign is part of the Voluntary Disclosure Program. This program allows taxpayers to correct inaccurate or incomplete information that they may have previously reported, without the risk of penalty or prosecution.

Disclosures may be made for Personal Income Tax, GST/HST or a couple of other lesser known taxes.

To make a valid disclosure under the program, the application must meet four conditions:

 1.      The disclosure must be voluntary

2.      The disclosure must be complete

3.      The disclosure involves the application or potential application of a penalty.

4.      The disclosure relates to information that is one year or more overdue.

If CRA accepts the disclosure application as filed, the taxpayer will not be penalized, but will have to pay any taxes due as a result of the disclosure plus applicable interest.

As with most CRA programs, if they fail to accept your disclosure as filed, there is an appeals process that allows you to have your case reviewed at a higher level. This program, taken at face value seems pretty good… it allows a taxpayer to make amends for prior oversights and / or errors.

However, if you look at it in depth, could you possibly be opening a ‘can of worms’ by reporting your errors to CRA?

If you tell them that you have made errors in the past, are they more likely to pay closer attention to you in the future? Could your disclosure prompt an audit or further review? These are questions that are best discussed with your tax preparation professional if you receive a letter of this nature.

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As a new year is now starting and more and more businesses are storing records in electronic format, I thought I would shine some light on the subject by way of an article I came across.

The below article was written by Greg Lam of www.smallbusinessdoer.com/, “an online small business education site that focuses on the money and tech side of things.”

Can you throw away – or even better, recycle – your paper receipts once you’ve scanned them in? The answer is yes and no, I’ll explain. The CRA (Canada Revenue Agency) has guidelines about what type of records and documents are accepted for record keeping.

This is a direct copy of text from p.4 of the CRA Keeping Records guide:

The CRA recognizes:

1. Books, records, and supporting documents produced and retained in paper format;

2. books, records, and supporting documents produced on paper, and subsequently converted to and stored in an electronically accessible and readable format; and

3. Electronic records and supporting documents produced and retained in an electronically accessible and readable format.

Well, any layperson interpreting that would think the answer is yes, the government accepts scanned documents as a legitimate record. As you read the Keeping Records guide further, you’ll find the devil is in the details. Here’s another direct copy of text from p. 5:

Records in electronic format

We consider you to have electronic records if you create, process, maintain, and store your information in an electronic format. You are required to retain these records in an electronically readable format, even if you have paper printouts of these records. If any of your supporting documents are initially created, transmitted, or received electronically, they must be retained in an electronic format. Scanned images of paper documents, records, or books of account that are maintained in electronic format are acceptable if proper imaging practices are followed and documented.

This is saying 2 things:

1. If the document was originally electronic (like a PDF receipt), then you need to keep that electronic document as proof. A print copy is not accepted.

2. You can scan documents in, as long as proper imaging practices are followed.

What are “proper imaging practices”? Here are CRA’s guidelines from p.9:

Requirements for an acceptable imaging program

You must keep the original version of records. You may, however, produce an electronic image of a paper document, which then can be accepted as the original record provided you follow certain procedures.

Imaging and microfilm (including microfiche) reproductions of books of original entry and source documents have to be produced, controlled, and maintained according to the latest national standard of Canada. For more information, see Information Circular IC78-10R5, Books and Records Retention/Destruction, and GST/HST Memorandum 15.1, General Requirements for Books and Records. Also, refer to the Canadian General Standards Board (CGSB) publication, CAN/CGSB 72.11, Microfilm and Electronic Images as Documentary Evidence, and its latest amendment.

Businesses using commercial software for smaller scale electronic scanning of their paper records and supporting documents should ensure that their scanned records meet the rules and guidelines set out in the latest national standard of Canada.

You can destroy paper books of account and supporting documents if they have been imaged in accordance with the above CGSB publication.

These images become the permanent records. If you have any doubt, obtain legal advice first.

If businesses cannot meet the Canadian General Standards, they must keep their original records.

Not so straightforward is it. The first sentence is “You must keep the original version of records”. That’s quite clear.

The next sentence is “You may, however, produce an electronic image of a paper document, which then can be accepted as the original record provided you follow certain procedures”. I don’t know about you, but that’s contradictory to the first sentence.

Further down you’ll read this “You can destroy paper books of account and supporting documents if they have been imaged in accordance with the above CGSB publication”.

Ok, so you have to keep the original records unless you follow the CSGB publication (which you must either pay to get or go down to a library to see).

So, are your scanned documents accepted as proof in an audit?

Yes, well probably, but potentially no.

Listening to anecdotal stories, I’ve heard of small businesses who presented scanned documents to auditors with no request for the original paper documents.

The practical advice is to have all your scanned documents organized and ready for an audit, but also keep the paper documents just in case; or go out and read that CSGB publication for yourself.

I hope that helps those businesses that are unclear about this subject.

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