Finance and Accounting in the Construction Industry
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Finance and Accounting Tips
Above all tips, CRA complaiance should be your accounting mission. If you find yourself or your company in trouble with the CRA contact Canadian Tax Consultants Cawston & Associates.- Who will help you with financial analysis? Hopefully not your bookkeeper. Find someone who KNOWS what your numbers mean.
- Did you know GST Due and Payroll Taxes are Trust Debts and the CRA can hold you personally liable?
- Will you incorporate or run as a sole proprietor? Both have unique legal and tax implications. Don't just do what your friend did - get proper advice.
- A balance sheet lists what a company owns and what it owes and is very useful to a bank to determine a company's financial standing.
- An income statement is a financial statement that reports a company's financial performance over a specific accounting period. Multiple statements can show a growing, shrinking, or going no where company.
- Gross profit margin is the percentage of revenue you retain after accounting for costs of goods sold. Track this monthly, quarterly, and on each job.
- Always keep your business and personal finances separate.
- Set up receipt/invoice tracking. Even photos of every receipt and saving to them Google Drive is a start. Back up all your data!
- Stay organized. File all your CRA compliance reports on time. Have contracts for all your work. Don't use collected GST or payroll taxes to pay other debts.
- Keep a close eye on cash flow. Don't confuse cashflow with revenue.