With the advent of economic micro-computers and inexpensive, comprehensive accounting software, many small businesses have chosen to do their own bookkeeping. For some owner/managers, this has been a worthwhile experience. They have reduced costs and improved their understanding of the business and they are more aware of the impact that a transaction will have on net income.

However, many owner/managers' experience has been a nightmare of having to learn how to do bookkeeping, how to reconcile a bank, having to upgrade computers that are used only periodically, and of having to buy and install software upgrades, etc. Generally, for these owner/managers, the time involved with bookkeeping has been costly and frustrating, particularly because of the time it takes the businessperson away from performing those tasks which they are good at and enjoy, and which were the reasons for going into business. These are the tasks, not the bookkeeping function, which make the business profitable.

Become More Effective and Profitable

Do a cost benefit analysis

How much time does it take you to do your books? How much does this save you in monthly bookkeeping fees? If you used the same time doing what you are good at and what you enjoy, how much revenue and gross profit could you earn?

If you are saving $500 a month doing your own books, something you don't enjoy, but are giving up $1,000 a month of gross profit, get effective and have your books done by Logan Katz LLP.

If you don't have time to do your books or doing your books frustrates you, have your books done by Logan Katz LLP.

Providing your books to Logan Katz LLP each month gives you an opportunity to discuss your business with us. Sometimes a business problem you may be having can be resolved by simply talking to us about it.

More Effective Reporting

Logan Katz LLP will design for you a chart of accounts and reports which are suitable for your business.

With your assistance, Logan Katz LLP will include in the reports key performance indicators which are applicable to your business.

Goods and Services Tax

Your GST returns will be filed on time and you will avoid penalties.

Recovery of GST input credits may pay a part of your fees.

Payroll

Your remittances will be filed on time and you will avoid penalties.

You will avoid paying costs which should be paid by employees, or former employees, because taxable benefits were not included in income and the appropriate deductions were not made.

The payroll will be set up so that T4 slips and related documents can be prepared accurately and on a timely basis.

Are You Really Saving Money?

When preparing your business' annual financial statements, have you ever heard the comment that a significant amount of extra time was necessary because the bookkeeping was not accurately done, or the bank did not reconcile properly, and/or expenses were incorrectly distributed, etc.? As you are no doubt aware , your accounting fee will be higher than expected.

Reliable Monthly Statements

Logan Katz LLP will generally set up your monthly reports so that they are comparable to the prior year and/or to a predetermined budget.

Logan Katz LLP may ask questions and document reasons for changes from the prior year and from budget. This will be beneficial when you are reviewing your year-end results and when budgeting for the next year.

Monthly financial statements enable you to monitor the progress of the business on a timely basis. Problems are identified and can be resolved promptly.

There are no surprises at year-end, for example, because of lower than expected income or a significant amount of income tax to pay.

You can be confident that the monthly statements have been prepared accurately and completely and that there has been a proper matching of revenue and expenses.

Beyond Financial Statements

Logan Katz LLP will process transactions to be recorded in your general ledger and will prepare the monthly financial statements. We can also prepare sales invoices and pay bills for you. However, we would suggest that these latter tasks be performed by the owner/manager because of the detail required of the business to ensure that the sales invoices are properly prepared and that cheques are prepared only for goods and services ordered and received.

An Alternative

The owner/manager may wish to process the cheques and deposits to keep the bank balance up to date and give a disk to Logan Katz LLP once a month to do the bank reconciliation and prepare the financial statements.

Discipline

Getting into the habit of accumulating information by a specific deadline is the motivation to many owner/managers to ensure that timely and accurate financial information will be provided to them by Logan Katz LLP. For example, you may be more likely to get things done if the agreement you have with Logan Katz LLP is to provide the records by the 10th of the month so that Logan Katz LLP can make payroll remittances by the 15th of the month.

Instalments and Remittances

A system is required to ensure all remittance and instalment deadlines are met to prevent unnecessary penalty and interest charges. Logan Katz LLP does this every month for a number of businesses and we can ensure that no deadlines are missed.

Eliminate Administrative Hassles

You don't have to gather all the documents required to have Logan Katz LLP prepare your annual statements and tax returns. We will have accumulated most of the documents as part of our accounting/bookkeeping function throughout the year.

We would be happy to discuss our involvement in the bookkeeping of the operations of your business should you so desire. Please do not hesitate to contact us.

The above provides general information only. It should not be regarded or relied upon as accounting or taxation advice or opinions. Logan Katz LLP Chartered Accountants would be pleased to provide more information or specific advice on matters of interest to you.

All contents are Copyright © 2003, Logan Katz LLP Consulting Inc. All Rights Reserved.