virtual_mgmt

Virtual Financial Management Taking away the hassle of keeping the books

Paperwork – Aaaaarghhhh… Every business owner hates bookkeeping and institutes (such as Institute of Professional paperwork. Unfortunately, it has to be done. Bookkeepers of Canada). And it has to be done in a prescribed format… otherwise the Tax Man will be on your back. If Bookkeeping is one of the worst parts of running you don’t keep proper books and records you risk a business. You’d much rather be out there fines and penalties from the tax authorities. It’s making things happen and making money from a legal requirement to keep financial records in a your business. And because everyone hates prescribed format. bookkeeping most people end up doing it in the evening or at weekends. So you have to do it. You have to keep the books and records complete, accurate and up to date. Yet, shouldn’t evenings and weekends be spent playing with the kids, spending time with your Unfortunately, it’s also difficult. You need to friends and loved ones, or out on the golf course? understand debits and credits, the wonderful world of double-entry and what must be recorded for tax purposes. That’s why there are bookkeeping exams (such as the Intuit Quickbooks ProAdvisor certification). That’s why there are professional 2 Virtual Financial Management

Get your life back! Bookkeeping is one of the worst parts of running A far better option is to employ a a business. You’d much bookkeeper to get the job done properly. rather be out there making things happen Unfortunately, full time qualified and making money from bookkeepers cost $45,855 on average in your business. Ontario, as at September 26, 2019, together with all the other associated costs and hassles of employing someone. That’s a big financial commitment for your business. Perhaps employing a bookkeeper is not the best option. So why not let us take away all that hassle so you can spend your time with the people you love and doing the things you love. Virtual Financial Management 3

Virtual Financial Management: It’s no longer about bookkeeping… Bookkeeping really is a hassle. And we can build a more profitable and successful “Having the right data will take that hassle away. However, it’s about business. help you make the best more than that. We don’t call it bookkeeping. It’s much decisions for your business” It’s not just about doing what you need more than that. It’s a Virtual Financial to comply with the law and to keep the Management service. Tax Man happy (and you definitely need to do that!). It’s not just about saving you time. It’s about helping you to build a great business. This is why we go beyond simply entering data. You see, when done accurately and timely your financial data provides critical financial information and key performance indicators. This information is critical to understand what is going right, and what is going wrong, in your business. Having the right data will help you make the best decisions for your business and help you 4 Virtual Financial Management

The benefit of our real-time 4. No system downtime because all information system software upgrades are automatically installed. This worry-free maintenance We take things a step further; we don’t saves you time and hassle, just do the bookkeeping, we offer training, support and advice. We also help you 5. And much more. We have listed all the run your business using a modern cloud benefits below. accounting service with access to our real- time information system. FREE FINANCIAL STATEMENTS: For business owners who hate A cloud accounting system will make your bookkeeping… life so much easier. We use an industry- leading cloud accounting system giving you One of the things our clients love about our instant access to information in real time. “Premium” cloud accounting service is this; This means you benefit in the following once we’ve completed your bookkeeping ways: and paperwork for the year, we prepare your end of year statutory Financial 1. It saves you a very significant amount Statements, completely free of charge. of time, 2. Gives you 24/7 access to up-to-date financial information and reports (you can use cloud-based software from any device with an internet connection), 3. You can sleep at night knowing your sensitive financial data is always secure and backed-up automatically, Virtual Financial Management 5

So, what is your investment? Much, much less than the $45,855 you You know with certainty what it is going to Setting up your cloud accounting would pay for a full-time bookkeeper. cost. And if we are slow and the work takes system longer that’s our problem not yours. A silly way to price If you are not currently on a cloud We also know there is no such thing as a accounting system, we will need to set you Most self-employed bookkeepers will quote one-size-fits-all solution. Every business up with that. Setting you up with a cloud you an hourly rate. is different. Your business is unique. So, accounting system is a separate service with what we do is give you a choice of different a separate price. Once again, we will give We think that’s unfair. packages so you can choose the one that you a fixed price for that and a choice of best meets your needs. And each of those options. Firstly, an hourly rate means you have packages can be further tailored so you get no idea how long the job will take and exactly what you want. And even though there is a one-off price to therefore how much it will cost you until get set up, when you use our recommended after the work is completed. Secondly, if Giving you complete certainty over the cloud accounting system you get a reduced they make mistakes or take longer you pay price, and choices, so you can build the price for our Virtual Financial Management more. That doesn’t seem right to us… it’s service that best meets your needs, seems a service. So, it soon pays for itself. certainly not fair. fairer way to price. Do you agree? A fairer way to price Before we can give you a price, we need to explain your different choices. So, what we do is give a fixed price, based on your particular circumstances and what you want. That way you can budget and plan. 6 Virtual Financial Management

Your options at a glance The table below summarizes what is included within each of our Virtual Financial Management service levels. To help you identify the best option for you here is a quick overview: Premium VFM – This is the best option for ambitious business owners who want to build a successful and profitable business. This is for you if you want to go beyond the data entry and get regular support and business advice from us. We help you interpret the numbers and make the right decisions. You also benefit from completion of your annual financial statements. Full bookkeeping – This is our most popular option. It’s for busy business owners who want us to save time and make life easier. We go beyond the essentials and make your life easier. Some of the key things you benefit from include an annual business review, completion of your sales tax returns and helping you get much more from your cloud accounting system. Essential data entry – This option is best for those business owners who are simply looking to get the basic entries done to ensure being compliant with the tax authorities. This is suitable for the smaller business and those on a tight budget. Virtual Financial Management 7

Essential things we do for you Regardless of which of the above packages • Posting purchase invoices, expenses • Completing the monthly sales tax is right for you we do each of the following: and cash transactions – We will post reconciliation (if registered, or subject to expenses to the correct expense accounts registration) – to make sure your sales tax • Posting all business bank transactions enabling you to obtain relevant financial records are compliant. – We will post all receipts and payments information and comply with the tax for all business bank accounts including authorities. • Completing any payroll journals – If any PayPal accounts, if applicable. you run a payroll, we will post the correct • Credit card transactions and journals each month. • Completing the bank reconciliations reconciliations – we will post all – Reconciling your bank account on a transactions on your business credit card • Our record keeping education program regular basis is critical. When you get to and reconcile the closing balance every – It’s so important to keep the right the year-end, if this doesn’t reconcile, month. records to keep on the right side of the your accounts will be wrong. You could tax authorities and to support your end up paying too much tax because • Completing the monthly sales and claims for tax deductions. So, what you’ve missed allowable expenses. Or purchase ledger reconciliations – We we do is show you exactly what you you risk fines and penalties from the reconcile your purchase ledger, so you need to keep, how to keep it and how tax authorities because you’ve missed know exactly what you owe (accounts to do it in the easiest way, including taxable income. And those fines can payable), at any point in time, to your the most efficient way to submit these be quite substantial, and increase suppliers. We reconcile your monthly records/receipts/bills/invoices to us for exponentially, depending on the severity sales ledger, so you know exactly who processing. and frequency of such errors. So, what owes you, and how much they owe you we do is reconcile your bank account at (accounts receivable), at any point in regular intervals. time. 8 Virtual Financial Management

• Access to our secure online portal – Our Your free real-time information 3. Business support – Since we can access firm is completely cloud based. You get system your data 24/7 you get more value from access to our secure online portal making us – we can help you run and grow your it easy for you to share documents with This is one of the features our clients find business rather than just add up the us, saving you time and giving you peace most valuable. We will support you every numbers. We can support you with your of mind. Everything is secure. month with our real-time accounting key decisions. system. This system will put you in The tax authorities can charge you a penalty complete control of your numbers. Cloud 4. Easier invoicing – Fast, simple if your records aren’t accurate, complete and accounting software companies charge a customized sales invoicing will make readable. You may have to pay interest and monthly subscription for using their system your life simpler. And the facility for penalties if your figures turn out to be wrong (for example, an annual subscription to the emailing of invoices, with the option to and you haven’t paid enough tax. The tax premium version of QuickBooks Online is attach a statement at the same time, authorities may check your records to make $600). But as part of our cloud accounting makes it so easy to manage your sales sure you’re paying the right amount of tax. packages, we pay this on your behalf, which and get paid quicker. means you get all these benefits of a real- Real life example: Many years ago, one time accounting system for free: 5. Quicker cash collection – The system business owner lost boxes full of financial allows you to embody payment records when his office in the lower part of 1. 24/7 access to up-to-date financial methods into your invoicing. For the home was severely flooded. Many of the information and reports from any example, click and pay to drive quick goods he had sold had been Asian imports device with an internet connection (you collection of monies owed to you. It and were paid immediately by credit card. can access your numbers with your makes it so much easier for you to get The tax authorities refused deductions for smartphone or tablet). paid, reducing bad debts and slow these goods, with a resulting tax liability of payers and putting more cash in your over $50,000. Since his record keeping was 2. Up to date – Real time accounting bank account. You can also chase not up to statuary requirements, they also means your records are always accounts receivable whilst you’re on the strongly advised him to seek professional completely up to date making it easier go. help (thus we gained a new client). for you to make the right decisions. Nowadays we keep all records safely stored in the cloud. In addition to everything above… Virtual Financial Management 9

6. Automatic processing – Your bank 11. Free software – As well as helping you, accounts can feed directly into the this system makes our life much easier system, which keeps your accounts and that means we can pass this onto up to date and fully reconciled to the you in the form of cost savings, i.e. we bank… this feature will save you a will pay the monthly fee for the system significant amount of time. on your behalf. 7. Instant reports – At the touch of a Your bank accounts can button you can get instant reports on feed directly into the your business. system, which keeps your accounts up to date and 8. Security – Being able to sleep at fully reconciled to the bank night knowing your sensitive financial data is always secure and backed-up automatically. 9. Maintenance free – No system downtime because all software upgrades are automatically installed. This worry-free maintenance saves you time and hassle. 10. Lower professional fees – Reduced accountancy fees because it makes it easier for us to produce end of year financial statements. 10 Virtual Financial Management

Your options in detail Premium Full Entry package package package The essential things you need to do to be compliant (listed above) Your paperless expense and receipt processing system Free *For most businesses, we usually identify at least $1,500 of additional allowable Maximize your tax deductions* Free business expenses that often lie unclaimed. Completion of sales tax returns Free Free Adjusting for any foreign currency transactions Virtual Financial Management Maintaining your fixed asset register Review of balance sheet items for accuracy Annual business review Your holistic cloud financial system Unlimited email and telephone support Dedicated account manager Summary management reporting Cost control: Expense monitoring, analysis and advice Accounts receivable monitoring Enhanced credit control Precision accounting with accruals and prepayments Regular business review meetings and advice Completion of annual financial statements Supply of cloud accounting software – typically retails at $600 per annum 11

Essential Virtual Financial Management – how you benefit This option is best for those business The system will make your life easier and Maximize your tax deductions owners who are simply looking to get remove clutter by filing paperwork in the the basic entries done to ensure being cloud. As part of your Virtual Financial compliant with the tax authorities. This is Management service we will take you suitable for the smaller business and those Let me explain one of the most popular through a list of some of the most common on a tight budget. features of this system… tax-deductible expenses. This means you will be able to claim every amount possible For a small fixed monthly payment, you will Every time you get an invoice or cash against your tax bills and have more benefit from all the essential things listed receipt (for example, a parking or meal money in your pocket. Many of these tax- above and: receipt) all you need to do is take a photo deductible expenses are often overlooked with your smartphone. You can then throw which means many business owners end Paperless expense and receipt that piece of paper away! The system will up paying unnecessary amounts of tax (for processing system store the image of your invoice and, when example, use of home as office and mileage you’re connected to the Internet, it will allowances). We recommend a system that will remove be sent from the system into our cloud the administrative burden that bills, accounting system for us to post it to the EXAMPLE: It’s not uncommon to justify home invoices and receipts place on small correct place. office expenses at 15% of household bills and not businesses. It makes the gathering, storage uncommon for allowable household bills to add and processing of receipts and invoices And best of all, we will supply you with the up to $10,000. So, the amount of money at stake as easy and cost effective as possible. software free of charge and show you how when not properly claiming this expense could to use it. easily be $1,500. 12 Virtual Financial Management

Full Virtual Financial Management – how you benefit This is our most popular option. It’s for busy Adjusting for any foreign Review of balance sheet items for business owners who want us to save time currency transactions accuracy and make life easier. We go beyond the essentials and make your life easier. Some If you make purchases or sales in other Your profit and loss account records your of the key things you benefit from include currencies you will need to make sure sales, income, expenses and costs and an annual business review, completion of they are correctly shown in your financial reports the correct profit for a period. your sales tax returns and helping you get records. We do this for you so you don’t The balance sheet is just as important. much more from your cloud accounting need to worry about it. The balance sheet contains the assets system. and liabilities of your business. It’s just as Maintaining your fixed asset important that this too is accurate. So what For a small fixed monthly payment, you will register we do is review every asset and liability to benefit from all the essential things listed ensure it is correctly shown in your financial above and: A fixed asset register is an accounting accounting system. method used for major assets (e.g. cars, Completion of sales tax returns office equipment, machinery and property). Annual business review Maintaining a register means you can keep If you are registered for sales tax you will track of your major assets, keep track of Every year we will have a review meeting need to complete returns regularly. If they their value and makes the production of with you. In this business review meeting are wrong or late the penalties can be end of year financial statements much we will discuss your accounting records, severe. So, to give you extra peace of mind, easier. For example, as part of this service interpret the numbers, how you can use the we do this for you. we will calculate your depreciation and numbers to keep your business going in the enter the appropriate journals into your right direction and answer your questions. cloud accounting system. Virtual Financial Management 13

Your holistic cloud financial This means that you can call on us at system any time knowing that you will never be charged for our time or advice. So, I hope Many cloud accounting systems integrate you will feel free to speak to us whenever with other solutions. There are systems you need to, without ever having to worry that allow you to photograph receipts with about the cost. your smart phone and enter them into your bookkeeping system; never worry about Of course, if the issues raised at any of these losing that parking receipt again! You can unlimited free consultations (or anywhere integrate online payment with automated else) require research or analysis beyond payment systems. You can integrate with the consultation, we will give you a fixed payroll systems. Inventory control systems. price quotation for that extra work before Accounts receivable management. The list any additional work is started. This means goes on… but we’ll simplify it for you. you will never get an unexpected bill. You will be amazed at what you can do to There are systems that allow run your business more easily, to help you you to photograph receipts get your cash faster and save you time. As with your smart phone part of our cloud accounting service we and enter them into your will provide a report setting out the most bookkeeping system. popular integrations and the best ones for your business. Unlimited email and telephone support Your fixed price is fully inclusive of unlimited email and telephone support for advice on ad-hoc matters. 14 Virtual Financial Management

Premium Virtual Financial Management – how you benefit This is the best option for ambitious Summary management reporting • An accounts receivable report showing business owners who want to build a you exactly how much money your successful and profitable business. This is The real power of a cloud accounting customers owe you and how long those for you if you want to go beyond the data system is having important management debts have been outstanding. This entry and get regular support and business information to hand. Information such report will help you to keep on top of advice from us. We help you interpret the as, who owes you money, what are your your accounts receivable and put more numbers and make the right decisions. sales this month and are you making a cash into your bank account. profit? As part of our Virtual Financial For a small fixed monthly payment, you will Management service we will help you set up • An accounts payable report showing benefit from everything in the Essential and the key reports you need so that the most you how much money you owe to your Full packages listed above and: important information is always a click suppliers. away. Having your finger on the pulse of Dedicated account manager your business is critical for making the right • Your profit for the month together with business decisions. You need to know the comparisons against previous months, Whilst you get access to our entire team, key numbers. For a period of your choosing which means you see at a glance if your your investment in the Premium package we will supply you with: business is heading in the right direction. gives you access to a dedicated Client Manager (non-partner level). This means • A view of your reconciled account • A detailed breakdown of each category you have a single point of contact. summary that will include a year to date of sales and expenses together with total for each category of income and the corresponding figures for previous expense, and most importantly, your months so you can see at a glance the profit for the year to date. key trends in your sales and your costs. Virtual Financial Management 15

Cost control: Expense monitoring, direction we will give you a call to make debt provisions and advise on alternative analysis and advice sure you are aware and offer suggestions for payment options. getting this key ratio back under control. Managing costs for any business is so This service will help put more money into important. We will work with you to identify Enhanced credit control your bank account. the most critical costs in your business (for many business owners these include people Cash is so important. And one of the big Precision accounting with costs, travel expenses and marketing benefits of a cloud accounting system is accruals and prepayments spend). the ability to keep on top of your cash and bank balances, on top of your accounts Accruals are adjustments for revenues that Once we have agreed which are your most receivable (i.e. who owes you money) and have been earned but are not yet recorded critical costs to keep under control we will get paid easier. There are now so many in your accounting records and expenses monitor them on your behalf. And whenever easy ways to manage accounts receivable that have been incurred but are not yet we notice a sudden change we will contact and get paid automatically (e.g. online recorded in the accounts. Prepayments you so you are immediately aware. As part payments and recurring automated are when you have paid for something that of this service we will also advise you on payments) and so many ways to integrate relates to a later period. how to keep costs under control. this into your system. Accruals and prepayments need to be Accounts receivable monitoring Our Enhanced credit control service will added via adjusting journal entries so identify all the options available to your that the financial statements report these Cash is so important. And a key part of cash business to help you get paid quicker and amounts. management is keeping control of debtors have more money in your bank account. We (i.e. the amounts of money you are owed by will also review outstanding invoices with Why is this important? your customers). One of the most important you, advise on your terms and conditions financial ratios is called accounts receivable of business, advise on your options for If you do not adjust for accruals and days. It’s a number you should measure and recovering outstanding accounts receivable, prepayments your income, expenses and monitor. We will monitor this for you and if consider the need for write-offs and bad profit for any given period will be distorted we see a substantial change in the wrong and inaccurate. Here is an example… 16 Virtual Financial Management

If your rent is paid quarterly, then every Note: You will of course need to complete tax third month you have a big expense in your computations and tax returns. And if you accounts but then no charge in the second are a limited company you will also need to and third month. So, we need to spread this complete statutory notes to the accounts cost across each of the 3 months it relates to comply with the Companies Acts. The to, so that you get a true and accurate completion of tax computations, tax returns picture. and full statutory accounts is outside the scope of this service and will be subject to a Regular business review separate price. meetings One of the big benefits of a At a frequency of your choosing we will cloud accounting system is the have a 60-minute meeting to review your ability to keep on top of your numbers. In this business review meeting cash and bank balances, on top we will discuss your latest management of your accounts receivable and information and how you can use the get paid easier. numbers to keep your business going in the right direction. Completion of annual financial statements As part of our Premium Virtual Financial Management service we will also complete your year-end financial statements – consisting of a profit and loss statement and balance sheet – completely free of charge. Virtual Financial Management 17

Popular add-ons Monitor your key Real time management In fact, this is such a powerful Monthly or quarterly predictive indicators reporting and financial business planning tool banks cash flow forecasting (KPIs) with our modelling very often insist on it as part and budgeting Financial Dashboard of raising finance. Management reports, Forecasting and budgeting We will set up your forecasting and budgeting help you plan and will give Financial Dashboard; a help you plan and will give you an early-warning signal fully customisable screen you an early-warning signal if you are likely to face cash showing you the key financial if you are likely to face cash shortages. Our forecasting information you need to run shortages. Our management service looks at each of your your business. You’ll come reporting service is broken forecast profits, cash and net to rely on this Financial down into three packages assets giving you a complete Dashboard just as much as so you can choose the one picture of what your business you rely on the dashboard in that works best for you. might look like in the future. your car when driving. This service will give you In fact, this is such a powerful a continually up-to-date business planning tool banks 18 Virtual Financial Management complete picture of what very often insist on it as part your business might look like of raising finance. in the future.

Inventory control and management will help you keep track of stock levels to ensure you never hold too much inventory or run out. Payroll Inventory control And the list goes on… Talk to us… Book a Consultation If you are a limited company Inventory control and As every business is unique, or have employees you management will help you there are many unique We are eager to learn what will need to have a payroll keep track of inventory levels features, some industry works well for you, and what scheme set up and operate to ensure you never hold too related, some of a general are your worst irritants. payroll. Many of our clients much inventory (which ties nature, such as CRM (Client What pains you the most? choose to let us then run the up cash) or run out (and miss Records Management, POS Repetitive stuff that you monthly payroll. Let us know out on sales). We can set up (Point-of-Sales) systems, might like to see automated, if you’d like us to take away inventory management that etc., too numerous to list etc. that hassle for you. simplifies purchase orders, here. However, we can help transfers and stock-takes. It find the right system for your Virtual Financial Management 19 uses automated reordering situation, to automate and based on specified inventory free up more of your/your levels to make sure you never staff’s time, if, when, and have too much or too little where warranted. Additional inventory on your shelves. costs for research and implementation will apply.

Accounting in the cloud: tools to grow your business Sybille Schaufler Accounting 74 London Road PO Box 114 Hensall, Ontario N0M 1X0 519-860-3431 1-800-665-7290 [email protected] www.sybillesaccounting.ca