When your balance sheet doesn’t balance, it’s usually a red flag that something is off in the basic accounting equation:   Assets = Liabilities + Equity   If the assets are less than the total liabilities and equity, your numbers aren’t syncing. This can jeopardize everything from your cash flow statement to your financial modelling.    Don’t Let […]

It depends on the nature of the property and your intent when selling it. If you’re a business owner or investor selling an investment property, real estate agent commissions are generally tax deductible as part of your selling expenses. These costs reduce your capital gain by lowering the profit from the sale.   However, if you […]

Being audited without proper receipts is like explaining a group project without bringing your notes. If the IRS or CRA audits your return and you can’t produce supporting documentation, they can deny those deductions, increase your tax liability, and potentially hit you with penalties and interest.   Let’s break down what could happen if you don’t […]

Accounting in mergers and acquisitions (M&A) is central to any business deal. From due diligence before the deal to financial reporting and compliance afterwards, acquisition accounting plays a pivotal role at every stage.    Accountants help assess the true value of a target company, identify assets acquired and liabilities assumed, and ensure the transaction is structured […]

Yes, you can lease your personal vehicle to your LLC, but you have to be mindful of some things. To keep things legit and tax-compliant, you’ll need a written lease agreement outlining the monthly lease, usage limits, operating expenses, and who’s responsible for insurance, registration fees, and maintenance.   How Leasing a Car to Your Business […]

Wondering how to value a business based on turnover? You aren’t alone. When valuing a business based on revenue, one of the most common approaches is to use business valuations based on turnover, often referred to as the times revenue method.    This valuation method takes the company’s annual revenue and applies an industry-specific multiple to […]

Estimate vs. Proposal: What’s the Difference in a Construction Project?   If you’ve ever wondered where to draw the line between an estimate and a proposal, you’re not alone. In the construction industry, the terms “estimate,” “quote,” “bid,” and “proposal” are often used interchangeably; however, they serve distinct purposes.    Let’s break it down, estimate vs. […]

What is a TCC Number?   A TCC number, or Transmitter Control Code, is a unique code given by the IRS.   To use the IRS FIRE (Filing Information Returns Electronically) system, you need a TCC. You can obtain it by submitting Form 4419, which helps the IRS identify the data transmitter.   You can visit the FIRE […]

Can I Rent My Own Property to My Business?   Yes, you can rent your personal property, such as an office or a warehouse, to your business. This is a common strategy for tax planning and asset protection.    Leasing or renting property to your business can be a smart strategy but only if you do it […]

Asset-Backed Loan vs. Cash Flow Loan   An asset-backed loan is secured by collateral like equipment, inventory, or real estate. If you don’t repay, the lender can take the asset.    A cash flow loan, on the other hand, is based on your business’s projected income and profitability. It’s unsecured, which is riskier for lenders and often […]