Archive for Jenny Duffy

Jenny Duffy of Money Talks

Posted in Resources with tags , , , , , on October 23, 2008 by zoepawlak

Money Talks with Jenny Duffy is one of your favorites.  Here Jenny answers questions related to the money side of owning your own business.  Please feel free to contact us if you have any questions for Jenny.  We always love to hear from you!

Jenny Duffy

Jenny Duffy

Loaded Bow: If you hear a woman say she has earned $10, 000 and she then tries to claim only $5000 on her tax return, which amount do you write down?

Jenny Duffy: I would claim the entire $10,000. Tax evasion is a serious offence, and Canada Revenue Agency has certain checks in place to ensure people claim all their income. For example, they can cross check any T4 reported by employers, and check to see if you have reported the income on your tax return. I always advise reporting all your income.

Loaded Bow

Loaded Bow

LB: I have been told that the tax system is one based on trust. Are you held liable if one of your clients does not provide the whole truth?

JD: I rely on my clients to be honest and truthful with me, and they rely on me to provide them with excellent service. If a client breaks that trust, it impedes my ability to do my job correctly. Trust is paramount.

From a legal standpoint, my job is to prepare the client’s taxes based upon the information provide to me. If they withhold information from me, and they are later caught, the client would be responsible for paying any penalties and fines. If I prepare a client’s return with information which I know to be incorrect, then I can be fined heavily by CRA and I would also be subject to reprimand by the Institute of Chartered Accountants of British Columbia.

LB: How can someone get caught if they lie on their taxes? What are the repercussions?

JD: Typically you would have to pay interest and penalties and would have to repay any additional taxes. In the most serious situation, incarceration may result.

LB: My accountant recently told me that I should save all my files for up to seven years. Why is this?

JD:  CRA can audit your tax returns for a period of up to 7 years after the date of filing. Keeping records ensures you can answer any questions they have.

LB: The second she earns any income on her own, is she then a small business?

JD: Technically yes.

LB: If I own my own business and my husband does not, should I always use my debit or credit card instead of his to pay for stuff?

JD: The easier the paper trail is to follow, the better. Therefore I recommend using your own card. If it cannot be avoided, always keep your receipts.

LB: I often have friends who are business owners who pay for lunch and take the receipt to claim on their taxes. As a business owner myself, should I be trying to accumulate lunch bills just for the sake of claiming them or only if I can a) truly afford it and b) it was truly a business lunch?

JD:  You can write off the cost of business lunches which were conducted in order to obtain new business, or maintain existing business relations.

zoe+loadedbow

Jenny Duffy of Money Talks

Posted in Resources with tags , , , on October 7, 2008 by zoepawlak

Jenny Duffy is one of our favorite people to talk with about money on Loaded Bow.  We adore her and her passion for life.  Read here to find some answers to taxes, passion and business goals.

Loaded Bow: Why did you become an accountant? What other passions do you have and how does being an accountant compliment or interfere with these passions?

Jenny Duffy

Jenny Duffy: My other passions are dancing, singing and acting. While I was in my articling period as a Chartered Accountant, I was working 40 to 50 hours a week, studying for my Chartered Accountancy exam 15 to 25 hours per week, and also dancing as a professional CFL cheerleader for the BC Lions. It was a lot of work, and there were times when I wasn’t sure if I could do it. But I was determined to, and I ended up cutting out a lot of the excess things from my life like television and hanging out.

LB: Sometimes I try and help my girlfriends, but they seem so determined and stubborn.
Should you offer other women business advice if they don’t ask for it?

JD: Typically, unsolicited advice can come across as a criticism instead of a genuine attempt to help. I suppose it depends on the individual. Some women will welcome any help they can get, while others will take the offer as a sign that you don’t think they are competent.

LB: How can women help one another achieve their business goals?

JD: Women can help each other by sharing resources. This can come in the form of mentoring, sharing information about similar experiences, or passing on information that other women may find useful.

Jenny Duffy

Jenny Duffy

 

LB: If I am both a business owner and an employee, is there a difference between claiming your small business taxes and the taxes that you claim as an employee on your T4? Do I have to file two sets of taxes?

JD: If you are unincorporated, you just file your personal taxes at the end of the calendar year and complete a Statement of Business Activities, Form T2124. If you are incorporated, you have to file the corporate tax return no later than 180 days after the corporate year end date (taxes are due 90 days after the corporate year end date). Any wages or dividends paid from the company to you as an owner/manager are recorded on your personal tax return, which is due April 30th.

LB: Do my husband and I have to claim our taxes together at the same location and time?

JD: You are not required to file your income taxes together; however there are some benefits to filing your tax returns together. You are able to maximize certain income tax credits, such as the dependant/equivalent to spouse credit, charitable donations and medical expense tax credits.

 

zoe+loadedbow

Money Talks by Jenny Duffy

Posted in Resources with tags , , , , , on July 20, 2008 by loadedbow

Last month we were all about brand and image. Your brand can be great, but when it comes to sustaining your life and your new business, the first six months are crucial. And that means keeping the books and keeping them well! We are so excited to talk to Jenny Duffy of Money Talks this July to hear what she has to say about your money in the starting months of your business.

Jenny Duffy

 Jenny Duffy of Money Talks

Loaded Bow: If I hire someone and they are doing a lot of the work in getting the business started, how would I know if I should pay them more or offer them a share in the company?

Jenny Duffy:  Shares represent an ownership interest in the Company. Generally I wouldn’t offer an employee shares unless you wanted to share control of your company and you foresaw them staying with you for many years.

Larger, publicly traded companies like Microsoft, Walmart etc. will often offer shares to their employees as an incentive for them to work harder. The premise behind this approach is that if employees work harder, the value and hence share price of the Company will increase. The employees could then sell their shares and make a considerable profit.

LB: How do I set up my payroll system?

JD:  Once you have determined how often you will pay your employees, you must ensure that you are making the correct payroll remittances for both employee and employer deductions for CPP, EI and Income Taxes. There are payroll tables and/or software programs available on the CRA website which will tell you how much to send to the government, and how much the employee’s net paycheque should be.

These are available at:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/tbls-eng.html

Additional detailed information regarding your responsibilities as an employer can be found at:

http://www.cra-arc.gc.ca/tx/bsnss/tpcs/pyrll/hwpyrllwrks/menu-eng.html

LB: How do I know how much to pay myself?

JD: Most first year entrepreneurs end up just paying themselves what is left over after paying their creditors and employees. If you have excess cash flow and you can afford to keep some money in the Company, I would recommend saving as much as possible after paying yourself what you need to live.

LB: If I have a great month and have paid myself and rent and all employees and suppliers, should I put the rest back into the business?

JD:  Yes! You never know what unexpected expenses may pop up. A broken window, a busted water pipe, a fire etc. These little surprises can severely cramp your cashflow so it’s best to have a rainy day fund on hand.

 

zoe+loadedbow

Money Talks

Posted in The Great Launch with tags , , , , , , , , , , on June 5, 2008 by loadedbow

Jeffy Duffy

Here in Money Talks we will chat with Jenny Duffy about how to have a great money start with your business so you can keep momentum and stay strong through the begining.

Jenny Duffy is a Chartered Accountant, and a graduate of the UBC Sauder School of Business. She is an independent contractor and maintains a private clientèle. She also works as a dance choreographer and performer, and is a fierce advocate of female entrepreneurs.

LB:  If a lady is ready to open her new business, when in the game should she meet with an accountant?

JD:  As soon as she decides to start her own business! A well seasoned accountant will have seen numerous entrepreneurs go through the same set up process, and will consequently be able to offer helpful planning strategies which will save time and money down the road.

LB:  What is incorporation, and should a lady incorporate her new business??

JD:  Incorporation is when you form a legal entity under which to carry on business operations. Generally, if you are not spending all of your earnings and you want to shelter some of your excess cashflow from income taxes, it is a good idea. It will also protect your personal assets in the event of a lawsuit, giving you limited liability.  However, you will need to prepare a corporate income tax return in addition to your personal tax return every year, and you will definitely need a lawyer to help you set up and maintain your corporate records.

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