If you're looking for an efficient way to track your company's expenses, then this is the right article for you! Accounts payable is an accounting term that refers to money owed by a company or individual to suppliers or others who have done business with them. It may also refer to money owed by the company, business owner, or individuals.

Using an accounts payable aging report can help business owners manage their books. It's a valuable tool for tracking the amount of expenses paid versus owed. And, it helps provide insight into when payments are overdue and the steps needed for them to be paid off in full.

How to use an Accounts payable Aging Report in QuickBooks Online

A QuickBooks Online aging report is like having a money management dashboard in your hand. In the next section, we will show you how to set up the aging report. The aging report allows you to view your Accounts payable balance as of any specific day or date (or range of dates). Using the Aging Summary Report below, helps identify accounts payable amounts over 30 days old for your review.

These are the steps you'll need to take to run an Accounts payable aging report:

1) Left-hand side > click on Reports > In the search bar in the upper right-hand corner, type in "Accounts payable" and select either Accounts payable aging summary or Accounts payable aging detail > in this example, we will be choosing the Accounts payable aging summary

2) On the next page > filter for date. For instance, you can choose either "Today" or a specific date range. With date range selected > click "Run Report" located on the right-hand side.

3) To view the amounts owed > click directly on the vendor names or the dollar amounts. For this example >click on "226" owed to "Jennifer Hargreaves."

If you want to change the filters, you can click on the report's gear icon "Settings" at the top right-hand corner. Doing this will open a new window with additional information on the amount owed. Once you've selected your filters, select "Next" again.

4) The last steps include:
-        Saving or exporting the data that you want to analyze
-        Correcting amounts or applying vendor credits, or payments against the amounts
-        Following up with the vendor, paying the vendor, or agreeing to a payment plan

Related Articles: 8 Tips to Improve Your Bookkeeping & Processes for Accounts Receivables

Frequently Asked Questions

What's the value of running an accounts payable report?

The value of running an accounts payable report is that it provides you with a snapshot of your company's financial performance. The aging process, which we will go over below, will allow you to compare the amount owed versus the amount earned. This provides a baseline for outstanding payments and their percentage of revenue and earnings and will enable you to determine if any trends are developing that may be worth further investigation.

From there, it's an easy step to determine if additional steps are needed for payments to be started or if they are overdue.

Are there any risks with not looking at an accounts payable report regularly?

As an owner, an accounts payable report can help you make better decisions about managing your company. There are circumstances where you might owe money that you usually wouldn't notice because you don't have access to reports tracking this data. It's important to note that this is a risk if you don't have the money to pay off your outstanding balances. This is why it's critical that you understand the value of having an aging report.

For example, an aged accounts payable report might show a series of overdue payments or payments held up. This could be for various reasons, one being the late payment fee. It's helpful to understand what is causing these payments to be late or why they aren't paid off on time to avoid incurring additional fees or penalties on your end. If you're looking for ways to save on your business expenses, this can help you determine where you're losing money and how you can avoid it in the future.

What do I need to know before starting an accounts payable aging process?

You want to make sure you understand what the aging process entails and how it will help your company understand your revenue and expenses.

What do I need to know before starting an accounts payable aging process?

You want to make sure you understand what the aging process entails and how it will help your company understand your revenue and expenses.

How often should I run my accounts payable report?

You must run an accounts payable report regularly to know your outstanding balances. Ideally, you would be running an accounts payable report at least once a month to ensure that you do not have too many outstanding payments or pay too much in interest.

Having this information at your fingertips is critical for your company's finances. Ask yourself these questions about your business:

-        Are there any trends of overdue payments or delayed payments?
-        Are any payments being held up?
-        How much are you paying in interest?
-        If there are unpaid balances, have you considered paying them off early to save money on interest costs?

When you are managing a business, it’s important to stay organized. One example of this is the accounts payable aging report in QuickBooks Online, which will let you view your payables status and the amount that the business owes over various time frames. It simplifies everything into a single document—or spreadsheet, as we would usually call it—that shows you how much money your business owes.

Not sure where to start?

Get in touch with us today. We can help you find the answers to these questions and have the correct information to make intelligent business decisions.

Looking for bookkeeping in Ottawa? Learn more about our services and our team.

If you don't know your accounts receivable process inside and out, it doesn't matter how good a salesperson you are. You can be on top of your game day in and day out, but until you figure out how to manage the process that comes after the sale, and the bookkeeping that goes with it, you're never going to be able to grow.

When it comes to the accounts receivable process, there are a few things that you need to know about to improve your workflow. Those are:

  1. How Long It Takes You To Get Paid
  2. What your payment terms are
  3. How Much Money Is in the Cycle When It Comes To Getting Paid?
How Long It Takes You To Get Paid

When you're trying to improve your accounts receivable process, the first thing you need to look at is how long it takes for invoices to go unpaid once sent out. If you're in constant contact with customers and customers who have previously purchased from you, you probably know that it takes about 30 days or so for them to pay your bill after the fact.

What does this mean for you? When was the last time that your customers paid what they owed? If you haven't checked in on it in a while, stop and do so now. Has it been more than 30 days since they paid? Then you need to adjust how long the process takes. If it's taking longer than 30 days, you need to try and require that they pay earlier in the cycle. If it's taking less than that, you should probably consider a way to speed the process up.

What Your Payment Terms Are

There are many different kinds of payment terms that you can offer your clients. Some require no money upfront, while others require full payment before any work goes out. Whatever payment terms you decide to go with, it should be something that makes sense based on your industry and what your clients are willing to agree to.

What does this mean for you? The payment terms that you offer should be something that your clients are willing to agree to. If they aren't, you need to think about changing the terms until you find something that both of you can agree with. This is one of those things where if you settle, all parties come out unhappy.

How Much Money Is in the Cycle When It Comes To Getting Paid?

If you're wondering how much money should be in various stages of the accounts receivable process, here is a rough outline:

Invoices – No money should be sitting at this stage at any time.

Credit Card Payments – This depends on your credit card processor. Most chargebacks are handled by the merchant, with the processor handling disputes.

Payment Schedules – This is the timeframe in which payments should be due. It's essential to know your customers and their payment schedules so that you can create a timetable for when their payments should be received.

Payments – Once they're received, this is how much money you get. Some companies may only allow for partial payments or require an entire payment to come in before they pay anything out.

What does this mean for you? If you've been paying your company's bills, you should know how much money is sitting in each of these stages. Once you do, you can work on optimizing the bookkeeping process based on this information.

Luckily, there are some tried-and-true ways to improve your bookkeeping process that anyone can implement with some deep thought and some elbow grease.

Here are Elevate by Welch’s 8 tips to help you get started:

1. Determine the optimal collection process for your business

First, figure out what sort of collection process will work best for your company. Do you need to offer customers a series of payment plans? Will it be better to take a more aggressive stance and set firmer deadlines? There are several factors involved in making this decision, but the most important is your customer base. Are they capable of handling a complex AR system, or is it better to keep things simple? The answer will vary by industry, but most businesses find they can remain competitive with straightforward policies and minimal stress on the AR side.

2. Establish a payment due date

Once you've determined how aggressively to pursue the AR process, the next step is to set a payment due date. This can be helpful if you're offering customers an extension since it will help them understand when they should expect to pay off their balance. You may still wish to provide some payment plan or extension in certain situations, but having an official due date in place can help prevent undue stress for all parties involved.

3. Utilize email reminders when necessary

If your customers fail to make payments by the due date, it's time for a gentle reminder via email. You can't be too pushy or hound your customers via email. However, politely asking for payment by a specific date can be effective at getting some customers to pay up on time. Keep in mind that some customers will need more time, but others are perfectly capable of paying up without much hassle.

4. Offer payment plans when necessary

For some customers, establishing a due date isn't enough to get their payments in on time. If you need to offer payment plans on occasion, don't hesitate to make it clear how these plans work and whether there is any penalty involved if the customer doesn't pay off the balance in the allotted amount of time.

5. Evaluate and adjust your collection process as needed

If you find you need to change your AR collection policy or procedure, be sure to evaluate the situation and make necessary adjustments as necessary. For instance, you may find that a more aggressive approach works better than a more laid-back approach if your customers are slow to pay off their balances. Make the changes accordingly and continue trying new strategies until you find one that works best for your company.

6. Assess your operations with regards to AR processes and controls

As part of an overall systems audit, assessing how effective and efficient the account receivables process is within your company is explicitly also beneficial. What are the strengths and weaknesses of this process? What process improvements can you make to improve collections? By looking at these questions objectively, you can use this information to refine your AR process even further.

7. Automate your AR processes where possible

If you have the resources, it can be helpful to automate your AR collection process as much as possible. This is because automation simplifies the collection process considerably, allowing you to collect payments with ease and ensure that all documentation is readily available for auditing purposes if necessary

Check out some automation tools for this like AR Collect or Chaser

8. Give customers an incentive to pay off their balance.

As a final tip, remember that you can also give customers an incentive to pay off their balance as quickly as possible, so long as it doesn't run afoul of the law. You can offer discounts or other perks for specific customers who are willing to pay off their balance within a specified time frame. This will save you money in the long term, and it's likely to appeal to customers looking for a deal.

Over time, you'll find that your AR management strategy becomes more streamlined and efficient with every improvement you make. This leads to greater profitability over time, resulting in overall business success.

Not sure where to start? Get in touch with us today. We can help you find the answers to these questions and more so that you have the right information to make smart business decisions. Want to know more about hiring an Elevate cloud-bookkeeper and how they can help improve your bottom line - check out Anita's piece here.

“To invent your own life’s meaning is not easy, but it’s still allowed, and I think you’ll be happier for the trouble.” – Bill Watterson. Stephen Sun was the first person to tell me about this quote. Like many others, he found this quote resonated with him. How does this quote tie into accounting? Here is Stephen's perspective:

"Accountants tell us that a balance sheet is a snapshot in time, and the purpose of the balance sheet is to report a firm’s current financial position. In accounting, much entrepreneurial effort goes into creating a future-oriented organization with an eye on societal change and economic growth. Being entrepreneurial is also about having the courage to dismantle the current way of doing things, to focus on core business activities, and make them work for you.  Entrepreneurship is about sharing your vision and values, and acting on them. That’s what really counts.”

Let's meet Stephen:

#1 - Who are you favourite authors?

Calvin and Hobbes because we're all living in a Calvin and Hobbes world.

#2 - What do you like most about books? Were there any books that had a great impact on you?

Jane Eyre because it’s the greatest love story ever told, and because she taught me that just because you lose all hope doesn’t mean that you should.

And Harry Potter because he’s such a great protagonist. Nothing else like it.

#3 - What do you most enjoy about working at Elevate?

I like the people I work with and the atmosphere we work in. It’s somewhere I can enjoy spending time. Some of the more enjoyable aspects of working for Elevate are the wide range of our projects and having a fresh look on things every day. I don’t know what we would do without all the different things we get to work on; we make sure we take advantage of them all. We get to learn new skills and get better at what we do every day.

#4 - Is there a value that drives you?

Self fulfillment - it’s very personal. The best way I can put it is that everything I do has to bring me closer to my own self-fulfillment. Life is about taking risks, leaving it all behind and pursuing one's own happiness. The only plan I have for everything is make it interesting - there are plenty of other people making plans for other things. I believe if you focus on what makes you happy then the rest will follow closely behind, that all good things can be obtained through hard work and dedication.

#5 - What do you enjoy doing outside of work? 

Playing guitar, for those that can relate, is an enjoyable activity that I feel I’m really, truly good at as a result of a great deal of practice. In addition, swimming is also an enjoyable thing to do as it relaxes me and makes me feel more energetic. Everything depends on what you enjoy doing but the main thing is to keep yourself occupied and satisfied with what you do.

#6 - If you could have a superpower, what would it be?

A superpower like flying because I think it would make things easier in general.

#7 - What are you most passionate about?

My family, my friends, music, art and the environment are what I am most passionate about. All are equally important but music is definitely at the top of the list for me.

Let's finish it off on a light note:

#8 - If you could be anywhere in the world right now, where would that be?

Disney world with my family because I think it would be great to have them with me for the experience.

#9 - If you could be in charge of a brand new country, what would be your first act? 

Free health care for all because it is a right we all deserve and we should be able to live longer and happier lives.

#10 - If you could be any animal what would it be and why?

An elephant because I think it would be very cool and unique to be one. Also, they’re great at expressing themselves and they always seem to be in a good mood.

#11 - If you could have dinner with any three people who would they be?

I honestly have no clue. I suppose it would depend on the context of the conversation, but in general I'd love to have dinner with Gandhi, Martin Luther King Jr., and John Lennon.

#12 - If you could travel in time, what would you do and why?

500 hundred years into the future, see what the technology is like or if humans have survived that long.

#13 - If you could go back in time, what era would it be and why?

The Renaissance because I think that period of history is one of the most interesting.

#14 - If you could be a character in a book who would you pick?

Not sure, but probably Harry Potter. He’s a great protagonist. I know there are other interesting ones out there but I can’t help but feel like Harry is an iconic character who really made the series exciting. In addition, he has all these amazing abilities and seems to have no limits to his potential. It would be nice to have some of those powers too.

#15 - Who are your superheroes?

My parents because they’re my greatest role models and they always made sure to teach me the value of hard work and diligence.

Bookkeepers are the unsung heroes of businesses, yet they are always present and look out for their clients best interests. They look at numbers not with dollar signs attached but with numbers not as just a source of income or profit margin, but as an important way to measure how we live our lives.

Elevate by Welch is committed to providing bookkeeping solutions for businesses throughout Canada.

With these insights into Stephen's world, we hope you get a taste of who he is and the enthusiasm he brings to his work.

The best way to get in touch with Stephen is emailing him here ssun@welchllp.com

“You are braver than you believe, stronger than you seem, and smarter than you think” said English author A. A. Milne. With this quote in mind, Olivia adds that you may already be well on your way to becoming person you always wanted to be. Due to set backs or lack of opportunity, you may not realize how much you can actually accomplish; you just need to keep pushing forward.

Olivia joined Welch in May 2021 after working for over 8 years in high tech, education, and aviation. The HR Business Partner's primary role is helping the business align its strategy with the needs of people and ensure that both parties understand each other's perspective and expectations. She enjoys coming to work with the knowledge that each day is different and unpredictable. She loves the ability to see the big picture while also having a lot of details at her fingertips.

Let's meet Olivia

#1 - What do you consider your specialties are?

Could be industry, or type of work, or both. I would say my specialty is working with people. I consider myself outgoing and truly want to help, understand, and support others. Within HR, Talent acquisition is where I have the majority of my background, but I have worked on big and small teams doing the full range of HR tasks.

#2 - What is your education?

I have a BA in English Literature (minor in Psychology) from Carleton University and I graduated in 2015.

#3 - What are some of your favourite books?

My Favorite Murder (or pretty much any podcast about crime/murderers), This Podcast Will Kill You, and most recently This is Important.  Books – As an English major, I will read almost anything. Three stand-outs for me are A Man Called Ove by Fredrik Backman, The Picture of Dorian Gray by Oscar Wilde, and The Handmaid’s Tale by Margaret Atwood, but I am always looking to receive suggestions!

#4 - What are your credentials & past experience for working in your position?

I have been working in Human Resources for 8 years. I wanted to get into the area because I thought my role would be similar to Toby’s job on The Office (I may be the only person who actually thinks Toby’s job looked like fun…). The work that I do is so much more diverse and rewarding than I imagined it would be, and I love being able to support employees from the beginning to the end of their careers.

#5 - What do you like about working at Welch?

So far, I would say that meeting new, welcoming, helpful people has been the best part of working at Welch.

#6 - What are the values that drive you?

Kindness and respect, and it is impossible for me to truly do my job without those values.

#7 - What do you enjoy doing when you are not working?

I read! Or go try out new coffee shops and brunch spots in the city. I also raise monarch butterflies.

#8 - What was your favorite subject in school?

English – and it never stopped being my favourite subject.

Let's finish it off on a light note:

#9 - What's the best advice you've ever gotten?

Remember that you can only do as much as you can do. When you are feeling overwhelmed, it’s important to remember that there is only so much that you can accomplish in a day and as trying your best is the best you can do.

#10 - Who was your first celebrity crush?

Orlando Bloom in Pirates of the Caribbean.

#11 - If you could be an animal, what would it be?

A sea turtle! I’d love to be any type of sea creature but I have a particular fondness for turtles.

#12 - What do you like to do at home?

Curling up with my cat to read, listen to music, or craft. I am slowly making my way through just about every craft there is during this pandemic.

#13 -  What's your favorite article of clothing?

A Rolling Stones t-shirt I got from their concert that attended with my dad.

#14 - If you were to create a superhero, what super power would you give it?

A high proficiency with observation, deduction, and reasoning like Sherlock Holmes.

#15 - If you could meet anyone in history, who would you meet?

I would love to meet Charles Darwin.

#16 – What did you want to be when you grew up?

My dream job would have been an archaeologist (or, as I grew up, a physical anthropologist).

#17 – Favourite TV show as a kid?

My favourite TV shows as a kid were probably Arthur or The Magic School Bus. I also liked watching throw-backs with my parents like Wacky Races and The Flintstones.

Human Resource Business Partners do a little bit of everything. They act as the main point of contact between the HR organization and the business units at Welch. One of their main responsibilities is to ensure that there is a constant flow of communication, allowing for effective issues management, which also produces an effective working environment for employees experiencing change.

As an HR Business Partner, Olivia:

  1. Provides consultation and advice to both internal and external clients using knowledge and experience of best business practices to ensure ongoing satisfaction of the organization’s diverse groups of employees; 
  2. Enhances the overall HR environment of the organization by assisting the business in achieving its strategic business objectives;
  3. Assists employees and management with to understand and navigate changes to policies, services, and programs;
  4. Ensures that all corporate policies are communicated to employee through various means (e.g., intranet, e-mail, etc.);
  5. Ensures that there are formal and informal communications with employees regarding HR issues (e.g., career development, employment, etc.), and;
  6. Supports employee training for organizational development and employee relations.

And so much more. Want to know more about her role or how she helps drive business success? Reach out to her at oferderber@welchllp.com

“Either you run the day or the day runs you" - entrepreneur Jim Rohn. Ling Xue is a bookkeeper, if you hadn't guessed. Although she originally studied food engineering in university, her career has taken a turn. With her CPA designation in hand, she now spends most of her time running the day: Ling's love for numbers help shape her life and motivate her to take on each new challenge. Her analysis skills have helped countless organizations run smoothly and stay in compliance with ever-changing tax laws.

As a cloud-bookkeeper, Ling's focused on eliminating inefficiencies and streamlining processes to improve efficiency. She enjoys solving puzzles and finding new ways to help organizations operate more efficiently.

Let's meet Ling Xue:

#1 - What are some of your favourite books?

The Art of War by Sun Tzu because it's full of lessons on running a business. I have read it several times and pick something different out of it each time.

Journey to the West by Wu Chent’en. It's a book about a Buddhist monk, Xuanzang, who goes on a quest to India and China in search of scriptures. It's great with a lot of interesting cultural information about the time period.

#2 - What do you like about working at Elevate by Welch?

My co-workers and work environment. I'm very comfortable and happy working here.

#3 - What do you enjoy doing when you are not working?

Sewing & drawing. It is relaxing, energizing, and a great way to express my imagination.

I also love travel because it's a great new experience and allows me to learn about different cultures.

#4 - What was your favorite subject in school?

Math. I like problem solving and the feeling of accomplishment when I finish a particularly difficult one.

#5 - What did you want to be when you grew up? 

Film Director. I love movies and I wanted to do that for a living.

#6 - What three words would you use to describe yourself? 

Outgoing, curious, and creative.

#7 - What is something clients have to deal with that you want to fix?

Clients spend too much time on administrative work and are generally not as compliant with tax laws as they could be. There's a lot of information to keep track of and the cloud-bookkeeper solution helps automate many of these tasks to make lives easier.

#8 - How would the bookkeeping profession change if you could see the future? Anything specific?

A lot simpler and more efficient with less time spent on administration. More focus will be placed on the core business functions, which means more time and money can be spent on innovation and new products.

Let's finish it off on a light note:

#9 - Who was your first celebrity crush?

Eddie Peng. I liked his character in the movie, Tomorrow.

#10 - If you were put in charge of a country for a day, what country would you choose?

Disney World! It's not a country, but I'd want to be there right now. I've never been anywhere like it. It's the closest I could get to magic.

#11 - If you could have dinner with anyone in the world, who would it be?

Friends and family.

#12 - If you had a time machine, when would you go back to?

I like this question! I’d probably go to the Ming Dynasty. I love the culture and I think it would be interesting to see what life was like in that era.

#13 - What is your greatest strength?

I think I'm very good at creating, innovating, and helping others.

#14 - And finally, which superpower would you want?

The ability to see the future.

Bookkeepers are the unsung heroes of businesses, yet they are always present and look out for their clients best interests. They look at numbers not with dollar signs attached but with numbers not as just a source of income or profit margin, but as an important way to measure how we live our lives.

Elevate by Welch is committed to providing bookkeeping solutions for businesses throughout Canada.

With these insights into Ling's world, we hope you get a taste of who she is and the enthusiasm she brings to her work.

The best way to get in touch with Ling is emailing her here lxue@welchllp.com

Have you ever wondered what makes businesses and the people behind them successful? At Elevate, we help dozens of businesses every day, and can share some insight into what drives them to be successful. Many Elevate cloud-bookkeepers and managers were also business owners at one point in their lives.

It is clear that in order to be successful, organizations need to have a sound strategic plan. However, in an increasingly competitive market, there are more and more ways that companies can stand out from the pack. It is important for organizations to understand which of these tactics will benefit them most and which tactics will be best suited to their specific business.

Here's what you need to know. 

Get the Mystery Out of the Employee Trust

By drawing together all of your employees into one unit, you are empowering them with knowledge about how the business works, their responsibilities, and why decisions are made.

At the same time, as an organization there is one less head to make mistakes under and one less group for disgruntled employees to blame. By pushing all decisions through voting processes and giving all employees a stake in the business success you will be creating a better working environment.

Build Your Brand From Within

A strong brand can have a significant impact on company performance in many ways. The most obvious is the impact it has on the bottom line. A strong brand makes it easier for your company to attract customers, and is more likely to be associated in a positive manner with the quality of products or services that you offer.

A strong brand can also act as a social safety net. If an organization is well known, if may be more likely to be trusted by its customers. In turn, this trust may result in a boost in sales and a fall-off in complaints.

Branding should not just be about creating a logo that looks good, although that is important too! Come up with a creative slogan or tagline that sums up your company's vision and values. A slogan like "The Good Life" will be more impactful than "How to be Successful". Most importantly be authentic and create a brand that has meaning for your target audience.

Expose Your Employees to New Ideas and Concepts

A well-educated workforce is better equipped to perform at the highest levels, especially in the new and fast-paced job market. When we do not know how things work, then we have no choice but to rely on other people who have that knowledge. Although it may seem that this knowledge can only come from outside of the company, it is possible to share this information with the right people inside the company. The key is to expose employees to new ideas and take an active role in their growth.

By sharing knowledge with your employees, they will gain an understanding of how their daily job fits into the bigger picture. This might give them a better sense of purpose when performing their job, which can impact on performance in a positive way. It also gives your business the opportunity to attract, develop, and retain talent that has a higher level of skill and competency.

Keep Financial Score

In a business it's important to keep track of how you are doing and how everything adds up. It's easy to lose sight of the big picture when you are working on specific tasks or projects, so it's good practice to take a step back every now and then and think about what this means for the future.

Cash is king so always make sure you have cash flow. It is also important to watch your company's profits and losses and keep track of how the business is doing. This information will give you a sense of where your business is headed, which can be used to help make strategic decisions in the future.

Have a Budget and Stick to it

It can be tempting to spend as much money as possible on sales and marketing in order to bring in more new customers. If you are not careful this can increase your expenses far beyond your income, which will lead to cash flow problems.

Start planning your budget now and try to stick to what you have set aside for sales and marketing. If you are offering a special deal or promotion, it is important that you do so in accordance with this budget.

Keep the Balance Sheet Closely Held

When building your business finances, it can be tempting to set aside some money in the bank for emergencies or unforeseen things. However, this can lead to problems down the line if something unexpected happens and you haven't covered it off in your budget. It is important to keep an eye on cash flow so that you know exactly how much money is coming into your business.

If you tie your budget down to an exact number, it can become a little bit restrictive. Instead of having a specific number in mind when writing your budget, make a list of the things that need to be included in it. While you can't possibly allow for every expense that may come up, this is a good way to re-evaluate and update your budget as needed. By keeping all costs in line with the revenue of the business at any given time, you are much more likely to stay under control.

Set Goals/Targets/Objectives

There is no point in setting up goals unless you do something with them. The whole idea behind setting goals for your business is to help you decide where you want your business to go.

For example, if you want to increase the volume and value of sales over the coming year, then it's important to look at what led to this increase. Were there certain marketing strategies that worked well? Was it a larger amount of traffic coming through your website? Or was it just one particular product or service that did really well? By setting goals for your business, you can figure out what worked and then repeat this as a success model in future.

High-Impact Marketing: Brings Awareness To Your Business

The approach that you take during a marketing campaign will have a significant impact on both sales and costs. If you're spending money on ads and promotions, then it is important that they are effective, especially when it comes to driving traffic to your website. There are a number of different ways to do this, including video campaigns, TV ads, social media campaigns and more.

When you incorporate these techniques into your marketing strategy over time, you can see the results in better sales and less cost for your business. By creating a successful advertising campaign with high impact for your customers, you are helping them find the kind of products or services they need and helping them achieve their big objectives through your company's support.

Wearing many hats comes naturally to some, but to most it means being diligent, purposeful, and consistent. While it may feel like your role in the business is to be at its head, it's important to remember that you work within a team of people.

If you keep these things in mind when planning out your goals for the future, you will be able to put your company on the path to success.

If you feel that some of the pieces mentioned above could be worthwhile to explore together, please reach out to us . We'd be glad to be of assistance.

Please feel free to share the content found on this blog, post freely and with attribution, if it can help you and others to grow your business.

So, you invested in crypto. By most accounts, you are not alone. And while this is a hot topic, many people still don't fully understand and grasp the consequences of investing in cryptocurrencies. The guides on Reddit and the internet just don't explain everything you need to know. So, we created this easy-to-read guide to help anyone who is either just about to buy their first crypto investment or are looking at diversifying their portfolio.

What's all the buzz about?

Cryptocurrency has become one of the hottest investment options in the last year. Many people are attracted to the exciting potential of this pioneering, decentralized technology. However, there is one major thing holding people back: The Unreliable Income Tax Conundrum.

For tax purposes, crypto is not currency. Crypto is property and a business asset (like stocks). The CRA has issued guidance on how taxpayers should report transactions involving virtual currency. When you buy or sell cryptocurrency, it's taxable just like most property transaction.

Taxes For Cryptocurrencies

Cryptocurrency creators (Bitcoin, Dogecoin) set up these currencies as systems separate from any central bank, central authority, or government influence. However, cryptocurrencies are still considered commodities for the purposes of the Income Tax Act.  In other words, when you receive Dogecoin and use it to purchase goods or services, the CRA considers this as a barter transaction. The CRA requires you to report any earnings or losses from these transactions on your income tax return.

The Key Tax Questions

How do I calculate capital gains or losses?

When you sell a cryptocurrency for more than what you paid, the difference is considered a capital gain. If you sell for less, then this difference is considered a capital loss.

If you are the one who has sold a cryptocurrency for more than what you paid, then you owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are deductible against other capital gains.

What if I bought a cryptocurrency from someone else?

When you buy a cryptocurrency, either directly or indirectly from someone else (for example, on an exchange), then the CRA treats this as a barter transaction. Since the value of the cryptocurrency has increased, any capital gains will be realized on the date you sold it.

If you are the one who bought the cryptocurrency and sold it for more than what you paid, then you owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are not deductible on your tax return like income losses.

What if I trade cryptocurrency for another type of cryptocurrency?

When you trade one cryptocurrency for another type of cryptocurrency, the CRA considers this a barter transaction. Since the value of the cryptocurrency has increased, any capital gains will be realized on the date you sold it.

If you are the one who traded cryptocurrencies for another type of cryptocurrency and sold that one for more than what you paid, then you most likely owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are not deductible on your tax return like income losses.

Let’s look at some examples pulled from the CRA’s Guide for cryptocurrency users and tax professionals:

Let’s move along into other aspects of cryptocurrency.

Crypto mining

Crypto mining is the process of verifying transactions on a blockchain ledger by solving mathematical problems. In this way, a miner creates new cryptocurrency, which is then added to the digital ledger.

To mine cryptocurrencies, you need a powerful processing unit like an ASIC, or Application Specific Integrated Circuits. The processing power that ends up being used for this purpose is called hashing power (commonly expressed in megahashes per second). The faster your computer can compute hashes, the better chance you have of earning more bitcoins or other cryptocurrencies.

When it comes to cryptocurrency mining, it's a good idea to keep your capital loss and income loss separate. Capital losses can be used to offset capital gains, while income losses are deductible against any type of taxable income.

OK. So, what about taxes when earning cryptocurrency?

“The income tax treatment for cryptocurrency miners is different depending on whether their mining activities are a personal activity (a hobby) or a business activity. This is decided case by case. A hobby is generally undertaken for pleasure, entertainment or enjoyment, rather than for business reasons. But if a hobby is pursued in a sufficiently commercial and businesslike way, it can be considered a business activity and will be taxed as such.” - from the CRA’s Guide for cryptocurrency users and tax professionals

Individuals who are income tax residents of Canada are taxed on their worldwide income, including any income earned from cryptocurrency mining. Be aware that due to the large fluctuations in daily activity across trading platforms, tax authorities may take the average of the opening and closing values of the day, and also average values across a number of major exchanges.

What is income tax for business activity and does it apply to my mining operation?

The Income Tax Act describes income as the total of all amounts, monetary or not, that a person receives for any purpose. What this means is that all amounts are subject to income tax, even if there is no cash involved. This applies to cryptocurrency mining.

Since every business activity has to report income and expenses, the first step in determining your tax liability is to determine whether your cryptocurrency mining activity is a business activity or not. Therefore, you need to determine whether:

Your cryptocurrency mining activities are carried out in a sufficiently commercial and businesslike way; and You have acquired the necessary skills and knowledge that would allow you to carry on these activities as a profession or business.

What is the income tax treatment for crypto miners?

The CRA has indicated that cryptocurrency mining is a taxable business for Canadian tax purposes due to the fact that miners generate revenue from the sale of cryptocurrencies.

For additional information on how you can calculate your mining expenses and determine what kind of income tax treatment you should receive, please contact us today.

What about GST/HST?

From the CRA's Guide for cryptocurrency users and tax professionals:

"Where a taxable property or service is exchanged for cryptocurrency, the GST/HST that applies to the property or service is calculated based on the fair market value of the cryptocurrency at the time of the exchange.

If your business accepts cryptocurrency as payment for taxable property or services, the value of the cryptocurrency for GST/HST purposes is calculated based on its fair market value at the time of the transaction.

Keep all records that show how you calculated the fair market value."

For additional information on how you can calculate your GST/HST, please contact us today.

What about bookkeeping?

"If you acquire (by mining or otherwise) or dispose of cryptocurrency, you have to keep records of your cryptocurrency transactions. This also applies to businesses that accept cryptocurrency as payment for goods and services." - from the CRA Guide for cryptocurrency users and tax professionals

From the same CRA guide, please see below:

You should maintain the following records on your cryptocurrency transactions:

If you are a miner, also keep the following records:

To sum up, the CRA expects you to keep track of all your cryptocurrency transactions. Get in touch with us today should any of the above speak to you - or if you just need help with understanding your specific situation. If you would like to learn more about how Elevate by Welch can help with bookkeeping and tax services for cryptocurrency, contact Sean at sduffy@welchllp.com


The information contained in this article is for general purposes only. It does not constitute legal or tax advice and is not intended to provide specific answers for any individual situation.

In this series of posts, we will explore core bookkeeping and accounting concepts. Have you ever wondered who invented the double-entry system of bookkeeping? Do you want to know how to keep track of your finances and expenses? How to set up your bookkeeping system? You'll be glad to know that you can learn how in this series.

Where to start?

The first step is always the same: register for a reputable bookkeeping software. Though they vary in price, features, and style, they all provide more or less the same things: they help keep track of your transactions and make managing them easier.

The next step is to start using the software. This requires studying the documentation, spending some time reading blogs about bookkeeping and even typing the transactions you already have committed to memory a couple of times.

Then, your final step is to create your accounting system. Write down all your purchases/sales and all your expenses in a notebook/document where you can always refer back to them, should you need to. This may seem tedious at first but it actually helps save time later on, as knowledge of past transactions develops speed and efficiency. Understanding your system will take time, most bookkeepers say it takes an average of 2–3 months to fully get the hang of it. You may even have to consult one of the experts who have already done all the tedious and labor-intensive work for you: accountants and bookkeepers.

Most importantly, focus on building your knowledge about accounting and keep doing that daily. You can never know enough and you will always need to refresh your memory.

This blog series is written especially with the beginner in mind. It doesn't mean that experts won't find it useful; on the contrary, expert bookkeepers often find it hard to understand why someone would want to take on bookkeeping without first learning a few things about it.

The 5 most important tips for beginners

#1 - Understand the importance of using a bookkeeping software

Many people make the mistake of starting to manage their finances without setting up a functional and organized system which will help them keep track of everything, as well as organize their financial processes. You wouldn't try to build a giant house without blueprints, would you?

#2 - Take your time with it

The idea that bookkeeping can be learned very quickly is quite common. But truth is it takes time and dedication to learn. A good bookkeeper or accountant can be hired to do all the grunt work for you, unless you have a special interest in the subject like many people do.

#3 - Focus on building your knowledge about accounting and keep doing that daily

You can never know enough about bookkeeping and there are always new things to learn, so build an effective learning routine that works for you.

#4 - Don't forget to read other blogs about bookkeeping

They are an excellent source of information and tutorials, as well as a place where you can ask questions about your financial process, which is very useful if you want to improve your skills.

#5 - Not for you?

This may be the most important tip of all: leave it to the pros. Reach out to us and let us know how we can help. Let us focus on your finances so you can focus on what you do best: running a successful business.

After all, we can't do what you do. But we can definitely take care of what you don't want to do or don't have the time for. Bookkeeping and accounting are essential parts of any financial system and as such should be taken seriously.

Never underestimate the importance of bookkeeping in the success of your business, no matter how big or small it is. Build a plan that works for you, keep your focus and go after it.

Stay tuned to this series for information on some recent technological changes which are underway. Curious about innovation in accounting? Ask one of our Cloud-Bookkeepers how their careers have evolved over the last few years.

If you would like to learn more about how cloud-based bookkeeping and accounting services can help elevate your business in 2021, contact Sean at sduffy@elevatebywelchllp.com

More from the Bookkeeping & Accounting series

Keep an eye out for the paper airplane taking off from the green runway for our next piece in the series.

It’s no secret that the future of business is changing. What might not be as well known is how quickly new technologies and regulations in Canada are impacting accounting and bookkeeping services. Accountants and bookkeepers need to be on the cutting edge of innovation to keep up with these changes, but many don’t know where to start.

That’s why we’ve partnered with Dext — a leading accounting solutions provider — to examine how creativity can lead to innovation in the accounting and bookkeeping space. For this four-part series, Kevin Durham from Dext talked to Sean Duffy, Senior Manager at Elevate by Welch, about his mission to bring innovation into the mainstream of accounting services.

The discussion centered around innovation, changing business models, technology and how to position yourself for success in the future. Sean Duffy discussed how technology is not only changing how businesses operate but also changing the workplace as we know it.

Part 1: What Does Innovation Mean to Canadian Accounting and Bookkeepers?

Part 2: How do you lead Innovation at an Organization? TO BE RELEASED SHORTLY

Part 3: Defining Success in Innovation. TO BE RELEASED SHORTLY

"If you can dream it you can do it." Tom Fitzgerald coined this, not Walt Disney. Accounting & Bookkeeping is not a fairy-tale story. It's a profession that involves numbers that have real-world implications, for me, this is what makes it interesting.

I often think about what inspired that statement. Was it the love of life and family? The hope that we have inside us to be successful no matter what our situation is? Or was it the belief that with hard work anything is possible? Who knows, but Tom Fitzgerald knew what it would take. And so do I.

Let's meet Monica Valbuena:

#1 - What do you enjoy doing when you are not working?

Spending time with my family.

#2 - What was your favorite TV show as a kid?

The TV show Friends.

#3 - What is the best advice you have ever been given?

Always finish what you start.

#4 - How do you like your coffee?

Strong and black.

#5 - What are the values that drive you?

Honesty and professionalism.

#6 - What is something clients have to deal with that you want to fix?

Bookkeeping is a sort of open input system and mistakes are made. Mistakes can affect the entire process and end up costing a company thousands of dollars. It's important to have a process in place that monitors the bookkeeping and accounting processes so they can be started on time and finished on time.

#7 - What do you like about working at Elevate by Welch?

It's very exciting working around numbers, analyzing data, and making sure things are correct. I also get to see people succeed as much as they do. The accounting process is an important part of many business operations, so it’s important to make sure it’s worked well.

#8 - How would the bookkeeping profession change if you could see the future? Anything specific?

I don't know for sure, but I can imagine that bookkeeping would be used more in the financial and medical fields. I think that the number of people working in accounting and bookkeeping should increase as technology changes.

#9 - Do you have any ideas for a business book? Anything that inspired you?

This is a great question. I always try to include the basics of accounting as well as business practices. Everyone moves into their own field, not just accountants. In my story, Monica is a bookkeeper and it is relevant to her work. As for something inspiring, I think there are many stories out there of what makes an individual successful and being passionate about what they do is very important.

#10 - How many years of experience do you have in your profession?

I’ve worked more than 10 years in my career and still love what I do every day. I’m sure there is something else out there that would interest me, but right now, this is where I want to be.

#11 - What's the best thing about your job?

The people I work with are very special. It's a team effort; we all encourage one another to be the best we can be.

Let's finish it off on a light note:

#12 - If you could have one wish, what would it be?

To help others and work on improving the world.

#13 - What is the most important life lesson you have learned?

Follow your dreams. You can do it. Just follow your passion and love what you do, and keep your mind open to new ideas. You never know where they might take you...

#14 - Which was your least favorite pet?

A rabbit.

#15 - Who was your first celebrity crush?

Leo DiCaprio.

#16 - If you could have one wish, what would it be?

To make a difference in the world.

#17 - If you could meet anyone in history, who would you meet?

I’d love to meet Leonardo da Vinci. His work is life-changing and he is truly amazing. He made beautiful things that changed history. Something about him just inspires me.

#18 - And finally, which superpower would you want?

Teleportation as I’d go to a beach in Aruba.

Bookkeepers are the unsung heroes of businesses, yet they are always present and look out for their clients best interests. They look at numbers not with dollar signs attached but with numbers not as just a source of income or profit margin, but as an important way to measure how we live our lives.

Elevate by Welch is committed to providing bookkeeping solutions for businesses throughout Canada.

With these insights into Monica's world, we hope you get a taste of who she is and the enthusiasm she brings to her work. The best way to get in touch with Monica is emailing her here mvalbuena@welchllp.com

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