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FinTech Companies – Collecting Payments to Save Time

Technology is ever evolving and finding solutions to problems we didn’t know existed. Small businesses today experience many struggles

March 6, 2017/by Richard den Otter

How you can avoid paying tax on capital gains from the sale of your family owned farm property?

Nobody likes paying taxes and in some cases, you don’t have to. This could be one of those situations. Do you own a farm and live in a residence on the property?

March 2, 2017/by Daleen Qazilbash

Richard den Otter, Tax Tips

FinTech Companies – Collecting Payments to Save Time

Technology is ever evolving and finding solutions to problems we didn’t know existed. Small businesses today experience many struggles

March 6, 2017/by Richard den Otter

Daleen Qazilbash, Tax Tips

How you can avoid paying tax on capital gains from the sale of your family owned farm property?

Nobody likes paying taxes and in some cases, you don’t have to. This could be one of those situations. Do you own a farm and live in a residence on the property?

March 2, 2017/by Daleen Qazilbash

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Richard den Otter, Tax Tips

FinTech Companies – Collecting Payments to Save Time

Technology is ever evolving and finding solutions to problems we didn’t know existed. Small businesses today experience many struggles with inefficiencies due to a lack of resources or expertise, and none more so than through the use of antiquated banking practices. It is the year 2017 and still businesses are sending and receiving payments in the form of paper cheques, wire transfers and money orders.

According to a study conducted by Scotiabank in 2015, each cheque issued can cost an average business between $9 to $25 including the cost of the cheques, employee time, mailing and distribution costs, and the cost to reconcile with accounting records.For some this is an area of frustration, and for other business owners – they don’t even realise a problem exists in the first place. Either way, there are solutions.

Several Financial Technology (FinTech) companies have been working hard at eradicating these inefficiencies by creating cost effective tools for collecting payments. The development of online payment processing systems to eliminate waste and increase efficiency is key to the future success of small businesses. Choosing the right product might not be the easiest of tasks, given the youth of this industry, so here is a breakdown of the best options:

Plooto

Fees: $1.00 flat fee per transaction or less, $9.99 per cross border transaction (+ additional mid-market currency exchange rate) flat fee.

How It Works:

Import outstanding invoices.
Customers view and pay invoices online.
We update your accounting software.

Benefits: Plootoworks to replace cheques by running bill payment and receivables processes managed all in one location, saving you time, money, and paper. You could be losing as much as 3% of your sales to transaction and credit card fees. Plooto’s flat per transaction fee offers cost assurance and certainty with no monthly fees or setup costs.See https://www.plooto.co/ca/features.

Rotessa

Fees: $9 (1-5 transactions/mo), $29 (6-50 transactions/mo), $49 (51-100 transactions/mo), $69 (101-250 transactions/mo), $89 (251-500 transactions/mo), 500+ (call for pricing).

How It Works:

Set up a Pre-Authorized Debit agreement with your customer.
Enter, import or sync customer bank account details into Rotessa from any device connected to the internet.
Enter, import, or sync a one-time or recurring transaction schedule into Rotessa based your agreement with your customer.
We’ll withdraw funds from your customer’s bank account based on the amounts and dates entered.
Reports are available 24/7 to learn the status of each transaction. Within a week we’ll transfer a settlement to your account and provide a detailed statement.

Benefits: Rotessa’s mantra is “never wait for another payment. Enjoy consistent cash flow & fewer doubtful accounts when you initiate payments through pre-authorized debits.” See http://rotessa.com/#overview

Which is better?

Both systems are compatible with both Quickbooks Online and Xero – the two leaders in cloud based accounting software, and operate fairly similarly. The two payment processing systems are intuitive to learn, and highly rewarding when implemented properly. Rotessa offers a more favourable pricing model for businesses completing a higher number of transactions each month, but the differences beyond that are few and far between.

For more information on these systems, as well as other FinTech payment processing systems please reach out to us at Insight Online Accountants.

March 6, 2017/by Richard den Otter

Daleen Qazilbash, Tax Tips

How you can avoid paying tax on capital gains from the sale of your family owned farm property?

Nobody likes paying taxes and in some cases, you don’t have to. This could be one of those situations. Do you own a farm and live in a residence on the property? If so, it could well be possible for you to pay NO TAXES on the sale of said property.

This hugely rewarding tax break comes in the form of two “exemptions.”The Lifetime Capital Gains Exemption (LCGE) for Qualified Farm Property and the Principal Residence Exemption (PRE) can lead to NO TAXES needing to be paid on any capital gains generated through the sale.

The criteria surrounding qualified farm property can be complex, so reach out to the appropriate professional advisor to help you assess your eligibility for the LCGE. The maximum LCGE for individuals who realize capital gains on the disposition of their Qualified Farm Property is $1,000,000 for the 2016 tax year. Since only half of the capital gain on the disposition of property is taxable, the resulting capital gains deduction limit is $500,000. That represents a considerable tax break should your farm qualify.

To qualify for the PRE, the property must be a “capital property” of the taxpayer. “Principal residence” is defined as a property which the taxpayer (or the spouse, common-law partner or child of the taxpayer) has “ordinarily inhabited.”

Example:a husband and wife own two properties: 1) a house on a farm used for business purposes, which they have lived in for all 10 years of ownership, and 2) a condo they have rented out for the 3 years they have owned it. The couple decide to sell both properties this year, and stand to make a profit on both. Essentially because the farm property is considered their “ordinarily inhabited” residence, they will not pay any tax on the profit made on that property, however they will have to pay tax on the rental property.

Starting January 1, 2016 you must report the sale of your Principal Residence on your tax return to be able to take advantage of the principal residence tax exemption. This is new for this year, and an important consideration when filing your taxes in the year of sale. This literally could save you thousands of dollars.

Once again, tax rules around capital gains can be complex. Please contact us here at Insight Online Accountants if you need professional advice on the LCGE, PRE, or any other tax saving strategies.

DISCLAIMER: THIS ARTICLE deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein. Although every reasonable effort has been made to ensure the accuracy of the information contained in this letter, no individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

March 2, 2017/by Daleen Qazilbash

Half Sized Blog Element (Single Author Style)

Half Sized Blog Element (Multi Author Style)

FinTech Companies – Collecting Payments to Save Time

How you can avoid paying tax on capital gains from the sale of your family owned farm property?

FinTech Companies – Collecting Payments to Save Time

How you can avoid paying tax on capital gains from the sale of your family owned farm property?

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FinTech Companies – Collecting Payments to Save Time

How you can avoid paying tax on capital gains from the sale of your family owned farm property?

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