FAQ's:
What are the benefits of using Office Elves?
Do you work on-site at my office or at yours?
Will you perform the audit of our financial statements?
What taxes do I pay if I hire someone as an employee?
Do I need to keep all my receipts for tax deductions?
How do you suggest I keep track of my invoices and receipts?
What taxes do I have to collect?
If you have any questions that you would like answered, please contact us at
faqs@officeelves.com
What are the benefits of using Office Elves?
Outsourcing improves performance and profitability. More specifically, its strategic benefits include:
|
Reduction of Employee Related Expenses and Issues - Outsourcing can reduce employee related expenses such as salaries, benefits, payroll taxes, and training. In addition, outsourcing can help a company better manage employee related issues such as turnover, scheduling, and human resources. |
|
Gained Access to Expertise in Multiple Fields - By outsourcing, you have access to the expertise of seasoned professionals with years of experience in a variety of specialized functions. You have access to this talent for far less than the cost of hiring comparable employees. |
|
Gained Independence - As an independent resource, an outside provider can offer a new perspective that allows for the evaluation and possible reengineering of business practices and processes. This reengineering allows a company the opportunity to incorporate best-in-class practices, thus improving performance and reducing costs. |
|
Achieved Cost Efficiencies - Through outsourcing the provider can help eliminate unnecessary operating costs while reducing and bringing other administrative costs under better control. |
|
Greater Internal Flexibility - Through outsourcing, management can focus on strategic issues and initiatives with more flexibility to assign staff and allocate resources to high-value projects. |
|
Gained Access to Advanced Technology - By outsourcing, a company can implement leading-edge enterprise systems to support the business processes, with lower capital investments and training costs. |
|
An Increased Focus on Core Business - Management is free to focus more time, energy, and resources into building the company's core business. The outsourcer assumes full responsibility for managing the day-to-day back-office operations. |
Do you work on-site at my office or at yours?
We can provide our service either at your location or remotely. After a careful evaluation of your needs, we will advise you on the most cost effective method of providing these services. Our goal is to be available and responsive to you, and to have your information readily available. Regardless of where the work is performed, you maintain control of the information and on-site personnel.
Will you perform the audit of our financial statements?
Performing your day-to-day accounting and an audit could be a conflict of interest. As a result, Office Elves Inc. does not provide independent audits. Instead, we provide the information that your auditors will find necessary to perform the audit. Therefore, we will not replace your outside accounting firm.
When it is time for the audit of your financial statements, we will have your financial statements audit-ready. By doing so, we make it easier for your outside auditor to perform the audit - which should result in lower audit fees and a quicker audit. We can also answer many of the questions your CA will have while performing the audit, which again frees you to focus on your business instead of dealing with your CA.
What taxes do I pay if I hire someone as an employee?
Hiring a paid-employee requires the payment of payroll deductions. These premiums often involve a deduction from the employee's cheque and an equal (or slightly greater) contribution by the employer, which is then remitted to the government by the employer. All employers are expected to remit payroll deductions for Canadian Pension Plan (CPP), Employment Insurance (EI), and Federal Income Tax. Some businesses depending on their size and nature of their work may be required to pay taxes to the Workplace Safety and Insurance Board or the Employer's Health Tax.
Do I need to keep all my receipts for tax deductions?
Yes, you may receive cash or property from many different places. If you don't have records showing your income sources you may not be able to prove that some sources are non-business or non-taxable. Keeping control of your financial records could mean tax savings and can prevent most of the problems you might encounter if you get an audit on your income tax or GST returns.
How do you suggest I keep track of my invoices and receipts?
We would suggest a computer software package for your record keeping needs. Most software packages are easy to use, require minimal computer and accounting knowledge, provide a plethora of useful reports and tools and more importantly meticulously keep track of all facets of your business from inventory to customer addresses from overdue debts to GST. There are several small business accounting software packages such as: Simply Accounting by ACCPAC M.Y.O.B by MYOB Inc. QuickBooks Pro by Intuit.
What taxes do I have to collect?
You may have to collect GST (Goods and Services Tax) and PST (Provincial Sales Tax) as follows:GST: If your gross revenue (total sales before expenses) is $30,000 or more in any twelve-month period, you must register for GST. Most goods and services are taxed at 7%. If your gross revenue is less than $30,000, then you may voluntarily register for and charge GST. When making this decision, consider: · Will it be an accounting hassle? For some, particularly those using a manual bookkeeping system, accounting for GST means another two columns to balance. · If you don't charge GST, you won't be able to take advantage of the Input Tax Credit. This allows you to deduct GST you have paid from that which you have collected. · Not charging the GST will inform everyone that your gross sales are less than $30,000. · What are your clients used to? Do your competitors charge the GST? For more GST information, contact: Canada Customs and Revenue Agency (CCRA)333 Laurier Avenue WestOttawa, ON, K1A 0L9Tel: (800) 959-5525. CCRA conducts FREE GST seminars and other CCRA issues. Call for information and registration. PST: Generally, if you are selling a product, or performing labour to install or maintain a product, you must charge 8% PST. However, there are many exceptions. Contact the local Retail Sales Tax Branch of the Ontario Ministry of Finance (746-9200) to determine whether you should charge PST. If so, you must obtain a Vendor's Permit. You can apply by phone or from an OBC computer terminal.
| | | |
