5 Common Payroll Implementation Errors You Can Easily Avoid
Upgrading or changing your payroll system comes with a ton of wonderful benefits. Saving time and money, making everyone’s lives easier, and better integration are all good reasons to consider a change.
But if the switch is mishandled, the results can be catastrophic and lead to long-lasting problems. Read on for some tips on how to avoid a disastrous payroll system migration.
1. Give the project the time it needs
It’s true that people may enjoy coming to work. But for most people, earning money is the main reason they seek out employment. Our jobs make the world go round, and support us and our families so that we can afford everything else in life.
Not getting paid, or getting paid incorrectly, is a massive problem for your employees. As a business owner, you want to make sure your employees are paid right and paid on time. This protects your business, but it also protects their happiness.
Changing payroll systems is a huge undertaking. There are many moving parts and people who will be affected. Make sure to give this project the time and attention it deserves.
Determine what will be necessary to make the transition, understand who it affects, and communicate with everyone involved. The planning process is critical. Treat it as the foundation to making the switch, and the rest will fall into place.
2. Map out integrations
All payroll software will do the basics, but that’s just the beginning of your new system. Learn about what other software will integrate with your new platform. Do your research for what add-ons you will need, and build accordingly.
Your new system will be able to connect with HR software, advanced accounting functions, time tracking tools, and so much more. Envision what your complete system looks like and understand how to get it to all work together.
When you have the full picture from the planning stage, it will make the transition a lot smoother.
3. Adjust the platform to your needs
The main motivation for implementing a new payroll system is to make things easier. Yet, many businesses overlook the ways that their new technology can help. It’s easy to lean on old methods for getting things done because they’re familiar, but that would be a mistake when switching to a new payroll system.
Make sure you know about and understand the features of your new platform. This is where the real time, money, and energy savings will come in. Automate anything you can. When these tools prove their worth, your team will understand the reason for switching.
4. Don’t bring over bad data
When implementing or switching to a new system, take the opportunity to go over your incoming data. Yes, all of it. Get rid of what you don’t need, while keeping in mind what you have to keep on hand according to any relevant tax agencies.
While payroll software is incredibly helpful, it can only do so much. If you put bad data in, it will spit bad data out. Go over the information you’re inputting with a fine toothed comb to get the best result.
5. Test, test, test
This phase is critical, and is often overlooked. Before you officially implement anything, make sure to test it out. There’s no quicker way to turn your staff off of something new than for it to work poorly or not at all right out of the gate. Take the time to test now and reap the benefits when you go live.
Final thoughts
Deciding to change your payroll system is a big undertaking. But with some planning and preparation, it can be a smooth and rewarding transition. Get in touch if you’d like to learn more about how we can help make payroll easier for you.
Contact us today or call (888) 857-5750 to discover how we can assist you in simplifying your payroll process and ensuring a seamless transition to a new system
Underused Housing Tax in Canada: What You Need to Know for 2023
Are you a non-resident of Canada who owns vacant or underused housing in the country? If so, you may be subject to a new annual tax called the Underused Housing Tax (UHT). But even if you're a Canadian citizen, resident, or corporation, you may still need to file a UHT return for each of your residential properties. Here's what you need to know about the UHT for 2023.
What is the Underused Housing Tax?
The UHT is a new tax that was introduced in Canada on January 1, 2022. Its aim is to encourage non-residents to make their vacant or underused housing available for rent or sale, which could help alleviate Canada's housing affordability crisis. However, there are situations where Canadian citizens, residents, and corporations will also need to file UHT returns.
Who Needs to File UHT Returns?
If your name or your business's name is on the land title of a residential property in Canada, you may need to file a UHT return. This applies to non-residents as well as Canadians. The UHT return is a 6-page document that asks for information such as the property's location, type, and ownership structure, as well as its occupancy and use during the year.
When Are UHT Returns Due?
UHT returns for the 2022 calendar year were due by April 30, 2023. However, the Canadian government has recently announced that it will waive penalties and interest for late-filed returns and late-paid UHT payable for the 2022 calendar year, provided that the return is filed or the UHT is paid by October 31, 2023.
What Happens If You Don't File a UHT Return?
Failing to file a UHT return on time can result in penalties. For individuals, the penalty for late filing is $5,000, while for corporations, it's $10,000. If you receive a late-filing penalty, you'll also be charged interest on any outstanding UHT payable.
To learn more about how Accountants 2.0 can help streamline your accounting processes and save you time and money, contact us online today or call (888) 857-5750.
The Underused Housing Tax is a new annual tax on the ownership of vacant or underused housing in Canada. While it's primarily aimed at non-residents, Canadians may also be required to file UHT returns for their residential properties. If you're subject to the UHT, it's important to file your return on time to avoid penalties and interest charges.
You can find more information on the Underused Housing Tax in Canada at https://www.taxtips.ca/real-estate/canada-underused-housing-tax.htm and on the official Government of Canada website at https://www.canada.ca/en/services/taxes/excise-taxes-duties-and-levies/underused-housing-tax.html.
Remember, if you're subject to the UHT, it's important to file your return on time to avoid penalties and interest charges. And the deadline for filing UHT returns for the 2022 calendar year has been extended to October 31, 2023.
Keeping Your Accounting & Bookkeeping Up to Date: 5 Key Tips!
If you want to ensure that your accounting details are always accurate or be able to provide financial updates to partners, one of the best ways is to implement the proper accounting and bookkeeping services.
However, for some, this might seem easier said than done, which is why the Quickbooks ProAdvisors from Accountants 2.0 have collected some easy tips for you here!
Organization is Key
When it comes to your finances, the more organized you are the better oversight you’ll have into all of your financial processes. Whether you’re using accounting software or manually maintaining your accounting and bookkeeping, it’s important to keep everything in one place and make everything easily accessible. This should include important items like receipts, invoices, petty cash accounts, etc.
Make it a Habit
The easiest way to keep track of accounting and bookkeeping is by making it an integral part of your daily, weekly, and monthly processes. Schedule a specific time of day or week when you sit down and review all of your company’s financial statements and ensure your books are up to date. Doing so will not only ensure you don’t miss anything but also provide insight into how your business is doing on a monthly basis.
Put Time Aside to Reconcile Your Books
Piggybacking off of the point above, putting time aside to reconcile your books is also important. Match your transactions with the entries in your books and ensure that there are no issues. Additionally, be sure to keep track of anything that is still being processed or invoices that are ongoing, such as regular payments to vendors, etc.
Utilize Bookkeeping Software
Bookkeeping software makes it easy for you to track every aspect of the accounting process, in addition to saving time, manpower, and money. This is because today’s leading bookkeeping software enables the easy use of automation for payment processes, provides alerts, and much more. You’ll have all of your most important financial information under one umbrella that can be easily accessed from anywhere with a simple wireless device.
Enlist the Services of a Professional Bookkeeper
If you’re unsure about maintaining your own financial records, or you know your books and accounting processes need to be updated, enlisting the help of a bookkeeper is easy and can save loads of time. A professional bookkeeper can reconcile accounts, and implement cloud software that provides automation for your most important processes, in addition to offering invaluable financial advice.
Contact our Quickbooks ProAdvisors today for accounting and bookkeeping services!
To learn more about how Accountants 2.0 can help streamline your accounting processes and save you time and money, contact us online today or call (888) 857-5750.
5 Key Small Business Bookkeeping & Accounting Tips
The best way to set your small business up for a successful future is by getting a handle on your bookkeeping and accounting services right out of the gate. That’s why so many invest in accounting software online for small businesses, like the solutions offered by Accountants 2.0. However, our Quickbooks ProAdvisors also wanted to include some tips for you here to make certain you’re on the right track!
Track Expenses
Keeping tabs on all your small business’s expenses from the outset is one of the best ways to remain financially solvent. You’ll be able to avoid overspending by knowing exactly what your small business can and can’t afford. Additionally, you can weigh the benefits of your investments early on and make certain what you spend will give you the best possible returns.
Implement the Proper Accounting Structure
There are different accounting structures for small businesses to consider such as cash-based accounting, which is when a company documents when cash is received and can be beneficial for smaller businesses. There is also accrual-based accounting, which is preferable for larger businesses that are more financially stable as expenses are recorded when money is incurred rather than actually paid.
Consider Automation
These days, through the use of innovative accounting software online for small businesses, many of the minute accounting and bookkeeping tasks can be easily automated. This saves your business time and money, as well as minimizes the chance of human errors in the accounting process. Automation can make it easy to follow up on late payments, track invoices, and much more.
Separate Your Expenses into Categories
Piggybacking off the first point, it’s important to not only track your expenses but separate them into specific categories as well. Doing so will create clear oversight into how your small business is spending its money. So document your expenses and place them into categories you can easily keep track of such as vendor payments, administrative expenses, bill payments, etc.
Implement Forecasting Solutions
To get a handle on future expenditures, it’s essential for your small business to implement forecasting measures so you can keep track and prepare your company for future growth. Consider what your annual sales might be in the coming years, try to predict the increase you’ll have in customers over the long term, and set achievable goals to attain.
For reliable accounting and bookkeeping software contact us today!
The Quickbooks ProAdvisors from Accountants 2.0 can help your small business get the most out of its accounting and bookkeeping solutions by providing streamlined software to track all processes under one umbrella.
Learn more by contacting us online today or by calling (888) 857-5750!
Keeping Your Accounting & Bookkeeping Up to Date: 5 Key Tips!
Keeping your accounting and bookkeeping processes up to date is one of the best ways to ensure the future growth of your company. Here our team offers some key tips!
How Outsourcing Your Accounting & Bookkeeping Services Saves You Money
When it comes to accounting and bookkeeping services, whether you’re a Fortune 500 company or a small to mid-sized business, saving every penny you can on unnecessary expenses can help your business excel. That’s why many are outsourcing their accounting and bookkeeping services these days to minimize issues and streamline their processes.
5 Reasons to Invest in Online Accounting & Bookkeeping Services
It doesn’t matter what size your company currently is, chances are you plan on growing in the future, right? This means that as you grow, more time will need to be spent on accounting and bookkeeping services to ensure you’re getting the most returns possible for your business and paying vendors on time.
At Accountants 2.0, our Quickbooks ProAdvisors are trained to help you implement easy, automated online accounting and bookkeeping solutions to reduce stress on your accounting department. Here we’ve collected the primary benefits for you below!
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Improved Efficiency:
With online accounting and bookkeeping services, you’ll be able to streamline processes, saving time and making accounting much more efficient. With cloud accounting services nearly every process is automated, everything from invoice creation to paying vendors, enabling you to focus valuable resources elsewhere.
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Enhanced Security:
Outsourcing your accounting and bookkeeping services also offers enhanced security. This is because a company like Accountants 2.0 has the resources, training, and technology to catch errors with transactions and potential fraud through frequent monitoring and auditing solutions.
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Increased Savings:
With outsourced accounting and bookkeeping services, you’ll save more money and get the most ROI. You’ll have full access to a team of professional accountants and bookkeepers without the need for maintaining an in-house accounting team. As you grow, you can scale your accounting department without the need for hiring and training new staff. Additionally, automated accounting services reduce human errors, catch unpaid bills, and can automatically follow up with clients regarding late payments.
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Access to Skilled Accountants:
With a trusted accounting and bookkeeping vendor, you’ll have access to today’s most experienced accountants available. You’ll pay much less than hiring a dedicated CPA while still receiving the same high level of service.
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Flexible & Scalable Solutions:
Outsourcing your accounting and bookkeeping solutions provides you with much more flexibility when it comes to changes in your organizational structure or scaling your business. There will no longer be a need to hire temporary workers to deal with seasonal influxes of business or add more stress on current team members as business picks up.
Contact our Quickbooks ProAdvisors for accounting and bookkeeping services today!
If you want a fully-automated accounting solution and enhanced operational support, contact us online today to learn how our team of Quickbooks ProAdvisors can help you. You can also call 888-857-5750 (Toll-Free).
How To Avoid The Messy Books In Accounting Trap
Within the accounting and bookkeeping industry there are two primary traits that seem to be common among all accountants and bookkeepers. That is, attention to detail, and a love for numbers. Those traits seem to be the driving force behind the motivation to do such exciting work, in an otherwise very mundane and boring industry. Perhaps, this is why you see so many entrepreneurs fall into the “messy books in accounting” trap. To avoid such a trap, here are a few interesting traits that accounting professionals possess to ensure their work is perfect.
They Emphasize Accuracy Through Effectiveness
You can distort numbers in any way you like, but the fact of the matter is numbers do not lie. The same rings true for the professionals who hold their work and processes to that highest regard. To eliminate margins of error, professionals create frameworks that give them 100% control over monitoring issues, when and if they arise.
“One of the biggest problems facing entrepreneurs today is the inability to transition to online accounting and bookkeeping tools with support from virtual accountants and bookkeepers trained at using these tools and who understand the integrations necessary to build a solid framework.
They use deductive reasoning as their primary logic
Defined: Deductive reasoning is a logical process in which a conclusion is based in accordance with multiple premises that are generally assumed to be true. It’s a top top-down logic, and proceeds from general premises to a specific conclusion. There is no room for theory, once you’ve identified one issue, then that is an issue in itself.
For example, “If receipts are missing, and all receipts are needed to be 100% accurate, your books are not accurate. If your books are not accurate, then the procedure to process receipts is flawed.”
They are accountable (pun intended )
As it’s been said, numbers do not lie, and if you do not know what you’re looking for they will deceive you. When money is on the line and there is no room for error, it’s accountants and bookkeepers who take on all the responsibility to make certain that perfection is the only option and the only way that happens is being fully accountable for managing the risk and integrations involved. When you have a professional who believes in perfection, is honest about it and takes full responsibility if something goes wrong under their control. You have yourself a trustworthy accounting professional who is honest.
“The honor among bookkeepers and accountants is knowing they fully accept the responsibility of perfection, as the numbers require them to be.”
When you have a solid framework in place, think like Sherlock Holmes and take full responsibility for perfection, you too can avoid the “messy books in accounting” trap.
Start The Clean Up Your Books Process By Finding The Root Cause
Do-It-Yourself accounting practices is nothing new to entrepreneurs. Monitoring the health of your business should always be a top priority. But sometimes when you are so busy running your business, there is a tendency to fall behind on the books, which will inevitably lead towards having to initiate the “clean up your books” process. There is nothing wrong with doing your own books, but in reality the more your business grows, the frequency and complexity of doing your own books grows with it, and this will cause irregularities in importing data, leading again towards inaccurate financials.
When you are not trained in the principles of accounting and you begin to fall behind on keeping track of your books, costly mistakes will arise, which can begin a process of what we call, “messy books” and when that begins to happen, getting a real understanding of your financial condition will definitely be skewed. However, with the right kind of process in place, not only can you get your books back on track, but you will also begin to develop a process that will sustain your business activities so you never fall behind again.
First, determine where the root cause of the problem is and what may be causing your messy books. However, keep in mind the issues that arise, may in fact not be the root cause of the problem. A financial repair specialist is trained in taking a deductive reasoning approach to financial repair projects. So if you find yourself frustrated and unable to find the root cause or not sure of what to do, a financial repair specialist is a great place to start.
It is very important that even if you don’t know what the root cause of the problem is, or not even sure there is a problem, the fact of not knowing is a problem in itself and taking back control is key and will save you time and money and avoid situations such as audits, banking penalties, and overall eliminating the restrictions on growing your business. Here are some basic red flags to look out for:
Bank cards and bank statements are not reconciled.
Tax returns do not match retained earnings.
Lease payments are not properly capitalized.
There are issues in your fixed asset recordings.
Falling behind on financial obligations.
Overpaying interest due to mismanagement.
Your assets and liabilities have a negative standing.
Now that you have identified without a doubt that you have one or more issues causing discrepancies in your financials. A plan of action is required to covering one important question that must be answered immediately to ensure that accounting best practices are in place moving forward
Once your books are fixed, where do you go from there?
Today there are so many accounting tools, that the selection process alone may be overwhelming, especially when you are faced with not only cleaning up your books, but it is very important that you have a solid system in place that works for your business, or else you will find yourself in position with messy books once again. Time and effort is required, but an online bookkeeping and accounting service provider will definitely help in determine the best tools that work for your requirements.
The clean up your books process is not easy, especially when you are gathering the data and then filtering the data that begins the reconciliation process. But once the clean-up process has taken full affect, the regularity of keeping financials and reconciling them will allow you to make informed decisions as you will now have accurate books to make performance based decisions.
Why Do You Need an Online Bookkeeping Services Company?
In its basic definition, an online bookkeeping services company helps you manage the creation, gathering, processing and storing of financial transactions. The key element here is that the storage of all the information happens to be online using source documents and reliable accounting and bookkeeping tools and applications ensuring the accuracy of all reconciled accounts.
The primary reasons why online bookkeeping services is crucial, is it meets government compliance standards, but more importantly, it provides accurate data for performance based analysis which is crucial for bookkeepers and accountants in order for them to provide clients with advice on areas of improvement.
Using an online bookkeeping services company is not only about saving you time, it’s more about improving your business
When you are focused on your customers and growing your business, there is a tendency to fall behind on keeping your books up-to-date, and when that happens, it not only becomes difficult to get things back on track, but it also becomes a daunting task as well. Hiring an online bookkeeping services company is a great idea and it’s an essential part of doing business that saves you time, allows you to continue to focus on your customers and knowing you are running your business with the full support of an experienced online bookkeeping service provider.
Here are four primary thins to consider:
1. They are passionate about numbers
With the growing number of small businesses who are shifting gears and moving towards online bookkeeping services, the main reason many are finding success utilizing a virtual bookkeeper is because all the data is stored digitally which allows bookkeepers to streamline the data for performance based analysis. In order to do that, they must be thorough and make certain that nothing falls between the cracks. Numbers are an obsession to them, its what they love to do.
2. They can be trusted
As easy as that might sound, we all know that trust is something that is earned. In most cases, getting a referral is a good idea, but only if the person who is referring you aligns with your business requirements and not basing their referral on their own needs that are being satisfied. Instead, make a list of online bookkeeping service providers and contact them directly, ask specific questions. The more specific, the more you will be able to see if you can trust them based on their answers that are important to you.
3. They are well informed
Just like any other professional who is dedicated to their industry, bookkeepers and accountants are always up-to-date on new procedures in the accounting industry. Giving your business the opportunity to always initiate the latest in best practices.
4. They are tech savvy
A new generation of bookkeepers and accountants who work within the industry for their clients are well versed in using the latest in accounting and bookkeeping software options. With so many new tools and applications available, it can be overwhelming to on your own to choose what software is best for you. Turning to an online bookkeeping service provider will eliminate the learning curve and align your needs with the tools they know will work best for you.