Frequently Asked Questions

On this page we have collected the most important questions, so that you could easily find the answer for almost any question you have doubts to clarify.

The two type of assurance reports that a company can provide are audited financial statements and review engagements. Sometime lender or potential buyers / investors put a condition on a specific transaction to be only concluded pending a clean audited or reviewed financial statements. Both of these reports are provided by qualified accountants (auditors) who possess a practicing license by CPA.
Under the international auditing standards, the auditors need to maintain their independence while preforming an audit engagement of the corporation. One of the main threats to their independence is a self-review threat which means that auditors can not review their own work. For this reason alone, and along with other similar reasons, your accountant or accountant’s firm cannot and should not preform an audit on your financial statement. Since auditors cannot express opinion on their own statement, we can prepare your financial statements and an external independent auditor can audit or review them.
As mentioned earlier, we can not preform audits or give an opinion on financial statements. However, we can prepare financial statements according to required reporting guideline and set strong control around the financial reporting which will result in reduced audit hours and therefore reduced auditing charges. Keep in mind that auditing is an expensive and time-consuming exercise, having an experience accounts can reduce the stress.
Tax rules are designed to fairly treat all the taxpayers. A simple choice of leasing vs financing does not create a material or substantial tax advantage over the other. The decision should be based on business needs and personal abilities to take on the responsibility. Tax rule distinguish between the type of vehicle and not how it is acquired.
There is a difference between a contracted employee and a contractor. Contractors are mostly self-employed individuals. You can either do contracting under you own name as a sole proprietor or a partner or you can register a corporation. A contractor can claim a number of expenses depending on the nature of the work. These claims are more flexible for a contractor than an employed individual.
The first place to look for your status is the job contract. If the contract states that you are an employee, then most likely you are an employee or if the employer is submitting your taxes to CRA, you are likely to be an employee. Other conditions that decide on your status are, who has the control of your work? Who is assigning your work? The length of the relationship etc. In most incidences the contact clearly states the nature of the relationship. Also, if the individual is responsible of paying their own expense and income tax, they are contracted.
A individual working from home is limited to the deductions specified by the employer in the form T2200. If you are in this situation, ensure that you have a completed and signed form by your employer. Also clarify with your employer before you start making any changes to your home or home office.
Yes, your spouse or child can transfer his unused tuition credit to you if you fulfill the conditions. However, there is a limit on the credit transfer.
These are two separate structures and very difficult to give a straight answer, however, to keep things simple, if you are expecting to generate a higher income, then incorporating the business is a better option until then its more advisable to work as a sole proprietor.