If you haven’t heard, Faces Magazine holds an annual awards ceremony to celebrate Ottawa’s favourite individuals and businesses – from favourite entrepreneur, accountant, to favourite restaurant and late night spot. We are proud to announce that the BM Group is a finalist for the “Favourite Accounting Firm 2019” category! As you can see from the list below, competition is tough.

When voting, you will notice that there is a very long list of categories spread over four pages. The first two pages being Individual nominees, and the second being Businesses. To save yourself some time, use the search function (control + F) to find the categories you want to vote for! Voters can cast their submissions once every 24 hours. Happy voting Ottawa!

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The Business Management Group is a small accounting firm located in a store-front office space downtown, minutes from the canal at 469 Elgin Street, Ottawa. Our accounting team has been providing accounting services in the Nation’s Capital for over a decade.

At the Business Management Group, we specialize in Accounting, Bookkeeping, and Tax Preparation, for individuals and businesses. Our convenient location and comprehensive experience ensure an exceptional quality of service. Client satisfaction is our number one goal. We take care of the numbers and allow the client to focus on what they do best.

Book your free consultation today!

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If you live or work in the area, you may have heard about the news – there will be year-long closures on Elgin Street starting in early January. While this may sound extremely inconvenient for businesses and residents in the area, there are of course ways around it.

The city has provided drivers, cyclists, and pedestrians with detailed maps showing possible routes to use during the long construction period. All businesses in the affected area are still reachable and will be operating as usual unless otherwise stated.

Continue reading for the following:

• Specifics of the closures
• Routes for drivers
• Routes for transit users
• How to drive to the BM Group office

Specifics of the closures

Elgin Street will be closed to drivers and cyclists from Somerset to Catherine Street, which affects the BM Group as well as many other businesses and restaurants. Closures begin on Monday, January 7th, 2019, and are expected to go until early 2020. Pedestrians will still be able to use the sidewalks in the affected area, but some crossings will be closed off.

Routes for drivers

The following map provides alternative routes for drivers looking to travel to or through the affected section of Elgin Street.

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Routes for transit users

OC Transpo has provided alternative bus routes for transit users. The two bus lines being affected by the Elgin closures are routes 5 and 14. As seen in the map below, their journeys don’t deviate much.

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How to get to the BM Group during the closures

Road closures make reaching your destination seem so much more difficult. For this reason, we offer two options:

Clients of the BM Group are more than welcome to send us their files electronically. We are able to operate virtually, and some people find this easier regardless of closures.

Secondly, we have also mapped out a route to reach the BM Group, as seen on the map below. Regardless of where you are coming from, you can arrive at Argyle Street (East) from Cartier Street or Queen Elizabeth Drive.

Should you have any issues planning your route to our office, please do not hesitate to give us a call. We appreciate your patience given the circumstances!

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As part of their Christmas party, the BM Group set out to escape from two separate rooms at Escape Manor Hintonburg. The team was divided into two groups – girls vs. guys. The girls took on Psycho, while the guys attempted Panic Room.

Competition and tensions were high, as both sides believed they had what it took to escape their room first. And when the results finally rolled, it is safe to say that everyone was surprised.

After weeks of friendly rivalry and banter, neither team was able to escape their room, and it remains a tie.

There’s always next year… Who do you think will win at the next Christmas party – girls or guys?

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When the temperature starts to drop and when the holidays are around the corner, this is an indication that Tax Time is fast-approaching. Before you know it, the time has come to contact your accountant and drop off your personal tax papers. Click here to view our up to date 2018 Tax Checklist. After all, you wouldn’t want to be late on your tax filing, right?

When you should start thinking about filing your tax return

For the most part, income taxes for individuals need to be filed by April 30th, 2019. This deadline applies to both sending in your tax return and paying your amount owing (if you owe). If you file late with a balance owing, you will be charged interest and a late-filing penalty. However, individuals entitled to refunds or who do not have a balance owing are not penalized for late filings.

The deadline for self-employed individuals is June 15th, unless you have an amount owing, in which case you need to pay by end of April. Also, it is important to note that spouses of self-employed individuals are also granted until June 15th to file their tax return without penalty. Regardless of whether you are self-employed or not, balances owing are due April 30th to avoid interest. What this means is that if you are self-employed, you can make an installment payment by April 30th to avoid interest, so long as the amount is greater than or equal to your  balance owing. 

To simplify matters, April 30th is the deadline for:

• Individuals to file their return
• Individuals to pay their balance owing
• Self-employed individuals to pay their balance owing/make an installment

June 15th is the deadline for:

• Self-employed individuals to file their tax return
• Spouses of self-employed individuals to file their return

Late filings lead to penalties, and late payments lead to interest being charged on the balance owing.

With the general deadline to file being April 30th, you should start thinking about your income taxes in the New Year. While filing a return doesn’t usually take too long, keep in mind that your tax preparer likely has hundreds of tax clients other than yourself. Do yourself and your accountant a favour by dropping off your papers well in advance.

Want to file your taxes early and get your return out of the way? Great idea, you can begin filing as early as late February. Filing early is a wise choice for people with a large amount owing in taxes, as this gives them time to prepare the funds or pay in installments. However, your taxes must be paid in full by April 30th if you want to avoid the penalty and interest fees.

What you need for your tax filing – 2018 tax checklist

Unsure of what slips you have? Of what you will be allowed to claim this year? Not to worry! The BM Group has got you covered. Generally, you should always provide a copy of last year’s tax return (if you have been with the same accountant they should have this on file already), installment payments, your T4 (employment income slip), and a list of other items.

We understand how confusing taxes can be, especially when rules change every year. For that reason, we have prepared an up-to-date Personal Tax Checklist detailing every slip, document, and receipt you should provide to your tax preparer (if applicable). Follow our checklist and you will ready to face the 2018 tax year!

How you can file your taxes

The actual filing of your tax return is the easy part. Once you have compiled all the necessary documents and slips, you can simply hand them off to your Tax Accountant to take care of the rest.

Whether you are unhappy with your current tax preparer, or do not have one at all, the BM Group is more than happy to take on new clients. We offer competitive pricing and generous student discounts.

Interested? Contact us today!

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This instructional post will provide you with the step-by-step process on how to pay your instalments through your online banking, which you will learn is extremely simple.

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Step 1

The first step is to login to your online banking. Whether you are with TD, RBC, CIBC, or any other bank, the process is similar and straight forward.

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Step 2

Now that you have successfully logged into your corporate bank account, look for the “Pay Bills” button. As simple as paying any other bill, click the button and move on to step 3.

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Step 3

Once you have clicked “Pay Bills”, you will be presented with a drop down menu similar to the screen capture below. Based on your bank, the other may vary but the wording should be as such.

Look for “Tax Payment and Filing”, click the link, and move on to step 4.

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Step 4

The next step is to add a payment type, which you can do so as shown below. Depending on the type of instalment payments you wish you to make, select either GST/HST Payments (GST-P), or Corporate Tax Payments (TXINS). These will already be set up with your bank, so all you need to do is select the correct account.

Regardless of which bank you are with, the payment names will remain the same. Once you have done so, the next step is to simply make the payment as you would any other payment.

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If you have any further questions of require clarification, please do not hesitate to contact us.

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Wondering what you possibly could have done to elicit a threatening phone call from Government officials?

If you are a Canadian resident with a Canadian phone number, chances are you may have received threatening phone calls from alleged employees of the Canada Revenue Agency (CRA). But what does this mean? Are you really going to jail for tax crimes you weren’t aware you had committed? Most likely not, but keep reading to be sure.

What you will learn from this article:

• What the CRA will never do
• How to respond to fraudulent calls/emails
• How to check your actual status with the CRA

What the CRA will never do

The Canada Revenue Agency will never do any of the following:

• Send you an email with a link requesting personal or financial information.
• Ask for any personal information via email or text message.
• Request payment via credit card or gift card.
• Provide you with information on other taxpayers.
• Mention personal information in a voicemail message.

Any caller who does one or more of those is a scammer.

How to respond to fraudulent calls/emails

The Canada Revenue Agency is aware of these calls and has a page on how to protect yourself from them. In summary, you should never provide any of your personal or financial information via email or through the Internet.

If you do receive a call and are unable to determine its legitimacy, the CRA advises that you ask for the employee’s name, employee number, and who their manager is. You should also ask who the legal representative on file is. Any representative of the Canada Revenue Agency is able to do so and will provide you this with information when asked. If the caller does, make note and call an actual CRA phone number and ask for this employee or their manager. You wouldn’t want to fall for a fake name and number!

Once you have established that you have been contacted by an imposter of the CRA, you can report the fraudulent activity at the Canadian Anti-Fraud Centre.

If you still aren’t convinced, contact your accountant! They will have dealt with similar situations and will be able to determine the validity of the call, and the necessary steps to follow. If you think you may have already been coerced into providing personal information, be sure to contact the police and notify them of the fraudulent activity. You can never be too careful!

How to check your actual status with the CRA

While you should never believe or provide any information to these scammers, if you are still unsure you can always check your status with the Canada Revenue Agency. This can be done by calling the CRA at 1-800-959-8281, or by checking your account online with them. If you don’t already have an account, you can register easily from the same link.

You can also contact us with any related questions, or if you would require any clarification. We know a scammer when we see one!

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Running your own business can be time consuming, stressful, and above all very expensive. That being said, business owners are able to minimize unnecessary costs and taxes owing, mainly through incorporation. Keep on reading to find out if incorporating is the right decision for yourself and your company.

The difference between a Sole Proprietorship and a Corporation

The profits of a sole proprietorship are claimed as income by the owner through self employment. This means that income from the business is taxed as the individual’s personal earnings.

A corporation, however, is an entity separate from its owner(s) which follows different tax rules and rates. As the owner of an incorporated business, you are required to file a Corporate Tax return, separate from your individual return. As you read on, you will learn about the benefits of doing so.

Pros of a Sole Proprietorship [icon name=”check” class=”” unprefixed_class=””]

Operating at a loss: If a business is operating at a loss, this can be used to lower the individual’s income on their tax return, meaning less tax owing overall.

Low registration fees: the fees of registration are far lower than that of corporation, sitting at roughly $60 for 5 years.

Easy to setup: along with being less expensive to set up, a sole proprietorship also requires less administration.

Cons of a Sole Proprietorship [icon name=”times” class=”” unprefixed_class=””]

Unlimited liability: Sole proprietors are liable for their businesses. This means that if the company is sued, the owner’s personal assets can be taken as forced payment.

High tax rates: unincorporated businesses cannot take advantage of tax reductions such as the Federal Small Business Deduction, which results in extremely high tax rates.

Pros of a Corporation [icon name=”check” class=”” unprefixed_class=””]

Tax benefits: incorporated businesses are taxed at a much lower rate than unincorporated businesses. Furthermore, shareholders can make further use of these tax benefits by paying themselves in dividends.

Limited liability: since corporations are separate entities, the liability of the business on its directors is limited, which in turn protects the individuals from most debt incurred by their business.

Ability to acquire financing: corporations are considered separate entities, meaning that they can borrow and lend money, and acquire their own financing which can lead to increased growth. Corporations can also raise capital through equity financing by selling stocks to investors.

Transferable ownership: the potential number of different owners for an incorporated business does not have a limit. Ownership in a corporation is more desirable than in other businesses, as shareholders are only liable for their stake in the company, based on how much they have invested. Additionally, ownership of a corporation is very easily transferable, as it only involves the acquisition and sale of shares between owners.

Improved image: corporations tend to appear much larger is size and operations than their non-incorporated competitors. They also have more of a sense of legitimacy in the eyes of potential customers.

Cons of a Corporation [icon name=”times” class=”” unprefixed_class=””]

Initial setup costs: when looking at the cost of incorporating alone, the setup fees can appear quite high in comparison to a sole proprietorship. The initial setup costs for a corporation can range from $1,000 to $1,500, depending on the business.

An extra return to file: as mentioned earlier, corporations are required to file their own Income Tax Return. This involves some extra time and administration.

The Verdict

If your business is earning more than $50,000.00 in annual income, it may be time to consider incorporating. While this may seem costly at first, the long-term benefit is far greater than the impact of initial cost.

To find out if incorporating is the right decision for your business, and to begin the application process, you can start by filling out our Register a Corporation Form. Once you have done so, our office will contact you to setup a no-charge initial consultation to discuss your needs.

For more information, contact us today.

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On July 14th, 2018, the BM Group competed at HOPE Volleyball. The team played in the competitive league at Mooney’s Bay beach and bonded over their wins (and losses).

Rumor has it a BM Group mug still resides somewhere on the beach…

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The majority of 18-year-olds most likely have very little work experience, and possibly have a small amount of income to claim, if any at all. In fact, many may not have given much thought to taxes and how they work. Regardless, by getting a head start on their taxes and by filing their first return at the age of 18, they may be entitled to receiving free money from the government. Keep on reading to find out more.

Why am I entitled to free money?

As low-to-mid income earning individuals, young adults are entitled to GST credits for the year they turn 19 – which means free money in their pockets. The government does this to support young people who are not earning a livable wage. However, one can only obtain this money if they have filed their taxes for the previous year (so while they were still 18). The reason being is that the Canada Revenue Agency uses the previous year’s return to assess how much each person can receive. This means that even with 0 income, it is worth their while to file at 18.

How do I get this free money?

As previously stated, in order to obtain this free money, young adults need to have filed their tax return for the previous year to ensure that they received the GST credits. The credits are paid out in quarterly payments, taking place in July, October, January, and April. Individuals who turn 19 years of age before the month in which the CRA issues the quarterly payments, and who have filed their return for the year prior, are eligible for this free money.

While filing a return at this age should be quite simple, we at the BM Group know how intimidating taxes can be, are more than happy to help with our generous student discount.

How much am I entitled to?

Most students can expect just under $300 per year in quarterly payments of $70 – for nothing more than filing their taxes! This is why we advise all young people to file their taxes ahead of time to ensure they receive these credits. If you are a young adult and think you may be eligible for this free money, contact us today and we can figure it out for you. This is an opportunity you that you are entitled to and should not miss out on!

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In early May while certain employees were on vacation, the BM Group decided to take advantage of the beautiful weather and try their hand at some golf.

Other than one golf cart ending up in a ditch, it was a successful outing at the Champlain Course in Gatineau.

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