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June 2013
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Inside This Issue Product Ten tips for SMBs when revisiting 2013 goals Hiring credit for small business (HCSB) and how to enter it in Sage 50
Training Opportunities Important Sage 50 Accounting Product Update Sage University 2.0—the future of Sage 50 customer training has arrived Your favourite Sage 50 feature . . . tell us and enter for a chance to win a $300 giveaway! Newsworthy New bills seen at the register We might be seeing a different labour pool Scoping out your first hires Don’t make business accounting a chore Canadian business owners looking to cut the red tape Take a Break Quote of the month Sudoku Fun facts about accountants
Ten tips for SMBs when revisiting 2013 goals It may be hard to believe that 2013 is nearly halfway through. As the midyear mark approaches, it is important to take a few moments to review the goals you outlined for your business at the beginning of the year. Maybe you’ve already reached some goals. Maybe others have changed. Below are ten tips for small businesses to consider when revisiting their 2013 goals. 1. Review and revise your business plans. As the year rolls on, you should take some time to evaluate which strategies worked well during the first half of 2013 and which didn’t, as well as remove or modify the latter from your business plans. When reworking your tactics, don’t focus solely on the state of your business, but rather consider the bigger picture and what’s to come. What is the current and projected state of the economy? Do you have any particular concerns about it? How will the economic environment affect the outcome of your planning? 2. Be prepared. Although the Sage Business Index Survey findings from September 2012 revealed that Canadian businesses were feeling positive about the domestic economy, recently reported news indicates an economic deceleration. Whether it is the economy or an industry trend, situations can shift quickly, so it’s imperative to always strive to be ready for both foreseeable and unforeseeable change. While preparing for the remainder of the year, read expert predictions and include staying abreast of business and economic news and the creation of an emergency preparedness plan on your resolutions list. Only through adequate preparation can you react and adapt as efficiently as possible to the ever-changing economic environment. 3. Track spending and chart your budget. According to the recent Sage Small Business Financial Literacy survey findings, nearly one-fifth (17 per cent) of small businesses struggle to identify the costs that affect their business the most. In order to increase financial control and account for fluctuations in the economy in the year (like the U.S. fiscal cliff, which can also potentially affect Canadian businesses), finding a way to track spending and charting a budget that works for you is an absolute must. Accounting software is your best ally for this task, since it speeds and simplifies the process greatly, but as long as this task is on your priority list, any tool you are comfortable with should do. 4. Organize your digital and physical workspace. Keep only the information and materials you absolutely need. It’s always a good idea to do maintenance and cleanup of on-site and cloud systems at mid-year. Purge old data and documents, and run diagnostics to ensure your systems are in working order. Also, call your solution provider if you have any outstanding issues. Performing such tasks will increase your business’ efficiency significantly for the year. Additionally, a clean, top-performing work facility will help decrease the chances of setbacks and missing items, as well as provide a positive impression to transient customers. Clean thoroughly, organize, and dispose of outdated and damaged products/items. 5. Perform computer and software upgrades. After you have finalized all your transactions and processes, things will likely slow down for a few days. Use that time to perform needed computer and software upgrades. These activities can take a bit of time, and you will be happy you took care of them once things ramp up again.
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Ten tips for SMBs when revisiting 2013 goals (continued) 6. Update client and vendor information. Efficient client and vendor relations will largely depend on having up-to-date information about them and your mutual interactions. Go through your database, add any missing information, and update or remove superfluous data. 7. Be prepared for 2013 tax changes. A number of tax changes will affect Canadian small businesses in 2013. Check your province’s website or with your Chamber of Commerce for any new regulations and prepare your financial documents accordingly. 8. Evaluate—renew or cancel. Are there any subscription services that you need to renew? Before doing so, it would be worthwhile evaluating whether the subscription is something you need. Did you get a good return on investment from it? Is there a vendor that can provide the same service at a better cost? 9. Check your customer appreciation and retention strategies. Your business is nothing without its customers. Whether you provide products or services, you won’t survive unless individuals or other businesses maintain interest in your offerings and want to pay for them. Achieving customer satisfaction that keeps clients coming back entails much more than selling a good product or service, so be sure to spend some time analyzing your strategy. Do you pay enough attention to your customers’ feedback? Is your team providing outstanding customer service and experience? Do you have a reasonable rewards program for loyal customers? Are you sufficiently connected to your clients through your marketing efforts? 10. Don’t hesitate to look or ask for help. The Sage Small Business Financial Literacy survey also revealed that Canadian small businesses still struggle with certain areas of their business. Although surveyed small businesses are becoming slightly more comfortable with the business activities they reported being a weakness last year, they still recognized the need to know more about financial planning (67 per cent), tax payments (65 per cent), and cash flow (58 per cent). Such issues are completely normal, but they should be addressed to prevent a negative impact on business. If you have struggled with certain aspects of your operations, take some time to do research, consult with a professional, or even sign up for a course. Nancy Harris is vice president and general manager for: Sage 50 Accounting—Canadian Edition.
June 2013
Hiring credit for small business (HCSB) and how to enter it in Sage 50
Sage University 2.0—the future of Sage 50 customer training has arrived
Small business owners may have already received their statements of account about the hiring credit for small business, which they are eligible for. Some of you might have interest to learn more information about this credit and how to enter it in Sage 50.
The Sage 50 Customer Training team is excited to announce that Sage University has been upgraded, with new features designed to improve the learning experience, inspire confidence with personalized learning plans, and help attendees monitor their certification progress. The new interface and enhanced functionality will make learning more intuitive and will encourage full participation in courses relevant to your individual business needs.
Hiring credit for small business (HCSB) is intended to stimulate new employment. It provides relief to small businesses by deducting the employer’s share of employment insurance (EI), based on the difference in an increasing employer’s EI premiums paid in one year over those paid in the year before. The amount to be credited is greater than $2, but no more than $1000. Once you know your credit amount, you can either claim this amount as income or reduce your EI expense when you file your next payroll remittance. If you claim this amount as income, you can treat it as other income under revenue. If you apply this credit to reduce your EI expense, you can make a pay remittance as usual. For EI remittance, enter the credit as a negative number under the payment adjustment column and make sure EI expense is used under the payment adjustment account column. The adjusted EI payment then shows up under the payment amount column. By doing this entry, the EI payable account is cleared, the EI expense account is credited, and you pay the adjusted (or reduced) EI amount. Hope this short explanation is able to help you understand more about HCSB and how to process it in Sage 50. For more information about HCSB, please visit: http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/hwpyrllwrks/stps/hrng/ hcsb-eng.html
Here are just a few of the fantastic highlights included in the new Sage University: • A simplified logon procedure using email address rather than user name, making the sign-on process much easier to remember. • Robust new advanced search capabilities to help better browse through all of the Sage training offerings or to locate just the specific training you’re interested in. • A brand-new Calendar search option, allowing you to see all of the valuable training coming to your area by day, week, or month and better plan for your training needs. • Personalized homepage based on product ownership, and links to: • Upcoming and In Progress Courses. • Completed Courses and Certifications. • Complimentary Product training options. • Enhanced tracking of certification status. • Superior Reporting/Printing options for courses you’ve completed and certifications you have achieved.
Important Sage 50 Accounting Product Update There is a Product Update available for Sage 50 Accounting 2013, which was released on June 20, 2013. The Product Update includes the federal and provincial payroll tax changes that take effect July 1, 2013. Only customers who are running Sage 50 Accounting 2013 and who are valid Sage Business Care Payroll, Gold, or Platinum subscribers as of June 20, 2013, will successfully receive the payroll tax updates. Any business still running Sage Simply Accounting 2012 will need to install Sage 50 Accounting 2013 prior to July 1, 2013. We strongly encourage all businesses running Sage 50 Accounting 2013 to download and install the Product Update, as it also includes product enhancements. In particular, we have improved the process in which you will receive and install future product updates and upgrades.
Getting the Product Update on June 20, 2013 If your software has not already prompted you to download the Product Update, you may manually download it from the Sage 50 Accounting website. If you have paid for the CD delivery mail service, your CD will be mailed to you on or after June 24. Please allow for five to ten business days for delivery; however, due to the statutory holiday, this may take longer. It is recommended you download the file from our website.
If you haven’t seen it already, come and visit us now to create your personalized Sage University profile and start getting the most out of your software with the training you need! Visit us now
Your favourite Sage 50 feature . . . tell us and enter for a chance to win a $300 giveaway! It’s almost halfway through the year! Summer is just days away, and so are the endless summer activities you could be taking part in—like bike rides, barbecues, or lounging on a patio with your friends. Sage would like to give you the chance to win a $300 Visa gift card to help you pay for your fun in the sun this season. It’s easy to enter; all you have to do is tell us (in 200 words or less) your favourite Sage 50 Accounting—Canadian Edition feature and how it helps you and your business. The selected best entry will receive a $300 Visa gift card, and three lucky runners-up will each receive a $50 Visa gift card. It’s that simple! Tell us your story here. You may be the lucky winner! Go here to view contest rules
New bills seen at the register
We might be seeing a different labour pool
Small business owners often have to implement policies to make sure they’re not being scammed at the register. They have to take a look at whether or not a person’s license matches the name on his credit cards or personal checks and if the back of a debit card is signed.
At certain times of the year, Canada sees an influx of workers. Normally, during the summer, immigrants head up here to take advantage of numerous job openings that occur seasonally. However, if Canadian lawmakers have anything to say about it, this might not happen with such frequency anymore, as they intend to tighten restrictions on international workers.
Where paper money is concerned, we’ve all seen employees hold bigger bills like a $50 or $100 up to the light to make sure the watermark is there. And if this cash looks or feels funny, that can raise a few red flags too. But many business leaders and employees know that the face of Canadian money is constantly changing. For instance, the penny isn’t around anymore, and bills are now being made with new materials to make sure they’ll last in circulation a bit longer. These workers should be aware that the Bank of Canada recently implemented another change: $5 and $10 bills have now taken on a new look.
New images on currency According to the QMI Agency, at the end of April, leaders at the Bank of Canada put the new bills into circulation. The $5 bill features a picture of an astronaut and the Canadarm, which is used by administrators in the space program to crate extraterrestrial vehicles, while the $10 showcases a train speeding through the Rocky Mountains. “With today’s unveiling of the final two notes in the series, one can see not only the unique story that each of the five denominations tells, but the unifying theme that underlies them all—the profound courage, determination, and ingenuity of our nation and its people,” Finance Minister Jim Flaherty explained in a statement, as quoted by the news outlet. The news source reported that both bills are now also made of polymer, to ensure durability. This completes the cycle, QMI Agency detailed, as $20, $50, and $100 bills that also feature images of Canadian achievements have already been released.
Good for businesses These developments have been beneficial for many companies in the north, The Globe and Mail reported. The details in the new bills, as well as the unique material, have contributed to the steadily falling frequency of counterfeiting. The news source also detailed that the currency also has a number of hidden security features, like see-through fields, raised ink, and metallic images, which are relatively hard to replicate. Citing Bank of Canada figures, then newspaper reported that in 2012, there were 28 million counterfeit bills in circulation, down from 34 million in 2011 and downright plummeting from the 76 million that were present in 2008.
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This change directly affects companies. Not only might they want to extend their help wanted ads to others to make up for a potential lack of seasonal staffers, but they definitely need to be apprised of the developments to make sure they’re always compliant with federal and provincial laws.
ALMO suspended immediately One of the first things business owners need to know is the fact that lawmakers in Ottawa suspended the Accelerated Labour Market Opinion (ALMO) process, The Globe and Mail reported. This initiative generally allowed employers to find and hire foreign workers quickly with little opposition while making it legal to pay such individuals up to 15 percent less than others in the area, as long as this stipulation was also extended to locals. Hiring international workers can be the catalyst smaller companies need to get their business off the ground. CBC News reported that hiring these workers can often allow a profit to be made easier, which can benefit the local economy, the firm, and eventually the workers themselves. This opportunity also allows foreign workers to become more familiar with the nation and use jobs to advance themselves, the news source explained. These positions can often lead to applications for permanent residency.
Real effect on owners Many small business owners aren’t thrilled about the restrictions this places on their companies. Representatives from the Canadian Federation of Independent Business and the Canadian Chamber of Commerce have already come out as opposing the measures, The Globe and Mail reported. Leaders of the Alberta government noted that depriving the local economy of a sizeable volume of workers might have harsh, long-lasting effects on provinces’ financial landscapes. Labour groups and other locals, however, have noted the benefits and claim that reducing the number of seasonal employees will solve regional unemployment and allow Canadians to get the first chance at filling nearby positions. Moreover, some companies won’t actually be affected by these new developments. According to The Globe and Mail, businesses involved in agriculture won’t have to abide by the rules because of a shortage of local workers.
June 2013
Scoping out your first hires
Don’t make business accounting a chore
When just starting a new business, owners tend to enjoy the creative elements and the “firsts” they get to experience. From picking the paint for the office walls to making their first dollar, every moment is special in the beginning.
Despite what many small business owners might think when they first open their doors, accounting can be fun. Well, that might be a strong sentiment, but seeing how well a company is performing is definitely exciting. Leaders can watch their babies grow and start turning a profit, provided they implement the right processes.
The same goes for choosing staff members. While placing advertisements and “Help Wanted” signs in public and holding interviews might not always be exciting, finding the perfect fit for the role that needs to be filled can be satisfying and result in friendships and business relationships that last for years. However, the initial hiring process can be stressful. Time and effort has to be spent seeking the workers out, and it can also place a financial strain on the burgeoning company. It’s a vicious circle—a store can’t open until there are employees trained and ready to assist customers, but owners can’t pay their staff members until they start making money. How can leaders cope with this situation?
To some, business accounting is pretty tedious—but those people are doing something wrong. We live in an age where manually recording financial data or using spreadsheets is no longer necessary, as there are accounting software options that automate those types of tasks. By using accounting software, administrators can get to the point where they just review the data at the end of the day—they don’t have to actively go through hundreds of numbers. After all, the number-one pain point for Canadian business leaders is managing cash flow, so why not make it leagues easier? Keep the excitement alive; turn to automated programs for help!
Kill a lot of birds with one stone Consider paying on commission While paying employees a base salary is usually required, leaders might want to consider offering their workers commission, at least in the beginning. According to Entrepreneur Magazine, not only can that help lessen the financial burden, but it can be a great incentive for new hires, which can only benefit business productivity. Leaders should also consider investing in accounting software to help them figure out what they can and can’t afford to pay their workers. This can also narrow down how much each staffer is making from his commissions, which can help show who is going above and beyond and might be considered for a promotion, as well as who might be struggling to fulfill his role.
Treat them as an investment Even if paying based on performance is not possible for some company owners, they should most likely just bear down and hire if they find a worker who has all the qualities and experience needed. Rather than passing on a great opportunity, employees should be regarded as the backbone of the company and seen as the ultimate investment. Entrepreneur said that leaders shouldn’t say that they don’t have the money to hire when it’s necessary and should instead find a way to make ends meet. This can also be helped along by making a list of the perfect attributes, experience, and tasks that need to be completed by their dream hire. When this person is found, administrators can’t afford to pass on the opportunity.
One of the biggest motivations for using accounting software is the fact that it’s so streamlined and can include a vast number of functions. Not only can these types of programs be synced with registers, online payment gateways, and bank accounts so leaders can always see where their cash is, they can also track customers, manage different storefront locations, process different currencies, enable users to take more control of costs, and calculate various taxes, from provincial to federal charges. If things were done manually, this would take a lot of calculations, require figures to be recorded in different ledgers and probably cause a high number of headaches. Plus, to handle all of these tasks, a company would probably have to hire a team of accountants in order to make sure nothing was forgotten and everything was done correctly, further adding to expenses. By using software, small business owners can help ensure that errors don’t occur, their systems are compliant, employees get paid, and finances are in order—all with the help of computer programs.
Prone to mistakes Other than the fact that writing out financial figures is tedious, it often results in mistakes. After a long day at the office or on the sales floor, people might mix up numbers or write something that’s supposed to be a comma as a period instead. This could cause massive troubles for any company, so to save face and bring a little pep to traditionally tedious tasks, relying on financial programs is probably best.
Canadian business owners looking to cut the red tape
Take a break
Cutting red tape isn’t half as much fun as it sounds. It’s not referencing one of those tape-cutting ceremonies featuring an overly large pair of scissors followed by an after party. Instead, it means figuring out how to get the local, provincial, or federal government to back off a little bit and give business owners some breathing room.
Sudoku Fill in the grid so that every row, column and 3x3 box contains the numbers 1 though 9.
There is a massive volume of regulations leaders have to abide by in order to remain compliant with the law and be able to successfully run a company and reap the benefits. This requires firm owners to keep up with all applicable codes and laws, which are subject to change at nearly any time. Tweaks have to be made in nearly every element of running the company when ordinances change. Canadian entrepreneurs know this all too well—we have to deal with government-applied red tape with some frequency in this nation. How can we cope? Is this more a matter of adapting to the landscape or is there a way to get government leaders to go easy on us?
Canadian companies losing money Many people think that government leaders will be amenable to loosening some of the red tape being applied because of a recent study that was published at the end of January. According to The Canadian Federation of Independent Business (CFIB), we pay more than our neighbors to the south when it comes to remaining compliant. The average small company doles out almost $6,000 per employee to keep up with the law, though American firms only pay around $4,084 per worker for the same purpose. The overall cost northern companies have to swallow to stay on the right side of the law is $31 billion annually.
Affects so many different factors There are numerous small firm laws for just about every aspect of business— from hiring and marketing to payroll recording and office setup. That said, some of these laws seem to be more restrictive than others, to the detriment of the company leaders. For instance, many media outlets have picked up on the red tape regarding business taxes, given the time of the year. According to The Vancouver Sun, these laws are becoming more and more costly, both when they are violated and when companies are trying to remain compliant. The news source said that this eventually affects everyone—to stay in accordance with tax laws, businesses have to spend money, and to recoup the losses, they may be forced to raise prices, thereby affecting consumers.
Quote of the month “Build your own dreams, or someone else will hire you to build theirs.” —Farrah Gray
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Fun facts about accounting Fun Fact 1: Bookkeeper and words derived from it (such as bookkeeping) are the only words in the English language with three consecutive double letters! Fun Fact 2: Janet Jackson, a global celebrity, initially trained and studied to be an accountant before finding success in the entertainment industry.
June 2013
Key contacts Customer Sales: 1-888-261-9610 Inquire, purchase, or renew Sage 50 Accounting Product or Version upgrades Sage Business Care Add-on products and third-party services Training courses Customer Support: 1-888-522-2722 • One free support case within 60 days of product registration. • Technical support for customers currently on a Sage Business Care plan. • Pay-as-you-go (offered as required). Customer Service: 1-888-222-8985 • Product updates (includes payroll updates) • Returns • Customer inquiries and complaints • Order follow-up • Credits and disputes • Student version registration • Issue payroll IDs to verified students • Remove customers from mail and call lists Key Web Resources: www.Sage50Accounting.ca http://Partners.SageNorthAmerica.com www.SageU.com This material is for general information purposes only. As market conditions are always subject to change, the information contained herein shall not be interpreted as any commitment from Sage or as legal or financial advice. Please consult with a qualified legal or financial professional if you have questions about your specific circumstances. Sage makes no warranties, expressed or implied, in this material. ©2013 Sage Software Canada, Ltd. All rights reserved. Sage, the Sage logos, and the Sage product and service names mentioned herein are trademarks or registered trademarks of Sage Software, Inc. or its affiliated entities. All other trademarks are the property of their respective owners. SPK 13-03011 06/13