There’s an old saying, “People can take good news, and they can take bad news, but they can’t take surprises.” The surprises that business owners find the most challenging are financial surprises. Below are the top three we hear about all the time.
Shortage on payroll deductions - Upset staff and potential government penalties are challenges you face if payroll deductions have not been calculated and submitted correctly. Often this surprise occurs long after your books have been closed for the fiscal year.
To prevent this headache, have your bookkeeper compare payroll deductions with CRA requirements quarterly and make the necessary adjustments.
GST Shortages - Receiving a cheque from the government is good – having to write an unnecessary one is not so good. Not knowing what you owe in GST, or not paying what you owe, brings this surprise to your door.
A monthly review of your GST spent and collected will keep you on top of how much is due to CRA. Save this amount in a savings account earmarked for CRA.
A Dishonest Bookkeeper - This scenario ranges from telling you that all assigned tasks are complete and correct when they’re not, to outright embezzling company funds.
A good system of controls with proper checks and balances will prevent this. One recommended control is to review and sign-off on your bank reconciliation every month.