Moore Details Blog
January 2015

$hit my bookkeeper says part Two

It's a bright sunny morning here in rural Ontario. A great time to blog and soak up a little Vitamin D.

This is $hit my bookkeeper says Part Two

With a continuation of yesterday's post, below are some topics that populate regularly with potential or new clients. Then they soon get trained "Jennie style" to keep their books legit.

I don't have the money to pay my remittance, can I report less and back it next month?

Whisky Tango Foxtrot (WTF) No! The government is not a bank. As a business owner you act as a trustee collecting tax on behalf of Canada Revenue Agency. Be it for HST/GST, Payroll tax, etc. This responsibility is to be taken seriously. After all it's these funds that help our employees retire, or collect Employment Insurance in the event of a disruption of earnings. Not to mention you are able to go to the hospital when ever you please! 

So continue to report what you owe and pay it. Falling behind on your remittance can crush you. The penalties and interest alone should deter you enough. Then figure out the real reason why you can remit. That's right look into your cash flow, analyze your profit and make changes! If you don't it will continue to be a cycle. 

My business isn't making any money. I can't pay my mortgage.

So many entrepreneurs start a business and all of the sudden become a Martyr too. They suck their personal wealth dry, rack up their personal credit cards in hopes of the big pay cheque once things get going good. This isn't a good approach. Ultimately you'll become unhappy with a business that is running very much the same way you are operating your personal finances. Think of why you started the business. Was it to go bankrupt? Or was it to do something you enjoy? So enjoy it and learn to grow with it. Learn to pay yourself first. Cover that mortgage. Chances are you needed a second mortgage to start up your business. You need to maintain that! Keep involved in your bookkeeping story. Work with a good bookkeeper and or accountant. It's worth the bucks. Find one that will work within your budget. Be honest with them and yourself. Learn to chase profit and not rely on the next big contract. Where do you make money and focus on that. 

Check out Profit First written by Mike MIchalowicz. This is a good guide to helping you allocate your business funds to meet obligations.

Profit First by Mike Michalowicz

until next time have fun and profit on! Yeah that was kinda cheesy but that's me.

Need a little help? Contact me, Jennie


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$hit my bookkeeper says part One

Remember in my first post I declared that I'm candid

So often (the name of this post) "$hit my bookkeeper says" populates from clients. Perhaps its because I firmly believe in being yourself. Which to me is genuine and honest. I tell it the way it needs to be heard. This is what I encourage everyone to do. I'm not talking about being rude or inconsiderate. I talking about being able to relay the right approach to tough situations were people like to dance in the gray zone. Do you get me yet? I think we've all been in those situations and if not then you need to get out from the rock you are hiding under!

So here are a couple of things that clients say "I can't believe you said that! 

Stop issuing postdated cheques!

Often this arises when a company is experiencing cash flow problems and vendors want a payment plan. Vendors and creditors can be really demanding in this type of situation. They fear that the business is going out and they want their money fast before it dries up! Well in some cases this may be; however if you are a business owner chances are you have put everything you got into the enterprise. Blood, sweet, tears and now probably a rocky marriage. Failure is not an option! So do not let vendors and creditors dictate to you. Find help! A good bookkeeper (plug for Moore Details ... I know cheap but effective), a good affordable software package (hint hint Quickbooks Online). If not already frugal....become frugal. Then come up with a cash-flow plan and stick to it. Analyze your profit margins, your products and services. It may be time to make difficult decisions. Do not let pride guide your decisions let profit guide you! So back to focus. Issuing a bunch of postdated cheques without a cash flow plan is going to crush you. Work in the now. The past is the past so learn from it. 

Stop issuing pay advances to employees!

But I care for my employees is what I hear in response. Then I hear I thought your business focus is to be helpful. My response it is! But paying advances to your employees is not being helpful! We all know life can be tough. I know that personally so you cannot sell me on any hard luck story. Remember you are not a parent to these employees (well maybe you are then you need to continue reading). A good employee needs to stand on their own two feet and not treat you like their dad asking for money because they spent too much at the arcade! Ouch! I know. Here is how you can help! Talk to them personally in a caring manner. The point is to care. Then point them in the right direction to get the proper help. So if its credit related for instance (see David Bach Latte Factor approach) refer them to a credit counselling service. There are many and some even operate free of charge (not a bankruptcy trustee!!!). Is it because of basic needs like food and shelter. Take them out for lunch and talk about their options. There are so many outlets to get food free or at a good price. Community cupboards, smaller co-operatives, and subsidized housing. For many employees in this situation they may not be aware of other avenues of help and just see you as the person who holds the cash that keeps them afloat the bumpy road of life. This is good time to talk about your own experience if you feel so confident to do so. Perhaps lending them a book by David Bach from his Finish Rich series. Ensure they have applied for all their necessary social benefits with Canada Revenue Agency. Perhaps they have found themselves recently single raising the cutest kids! Down load the paperwork for them to change their martial status with CRA and increase those Child Tax Benefits, HST and other applicable social pay outs. You will establish a better bond with employees using this approach. Long term employees. Those knowing you were there to help when they needed it most.


Stay tuned for part Two.

  Links for your reference:

Martial Status Change Form RC65

K3C Credit Counselling

The Finish Rich book collection by David Bach @DavidBachBooks



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