Cloud Accounting Services Toronto
Virtual accounting is the newest trend sweeping small businesses across the nation, and for good reason. These businesses are taking advantage of the automation and technology that’s almost impossible to attain in small scale internally. With the help of virtual accounting firms, a small business can access robust technology and up to date training which is costly to acquire in house.
What is Virtual Accounting & How Does it Work?
In simple terms, virtual accounting is a system that allows businesses to have their bookkeeping and accounting tasks done by a qualified expert remotely. The word virtual implies that the work will be done by a person online and the service can be accessed through an online network.
Hiring a cloud accounting firm in Canada is a flexible and cost-effective option especially for small businesses that would like to focus on their core competencies. With virtual accounting, a business gains similar benefits as having an accountant who is physically working at the office.
How Virtual Accounting Services Can Help Your Business
Businesses that seek cloud accounting services stand to benefit in several ways. To start with, they can save time and money by reducing in-house costs. Outsourcing necessary business functions like accounting and bookkeeping helps to lower the costs associated with hiring and retaining full-time employees.
It also allows businesses to spend more time and resources focusing on what they do best. Additionally, organizations can avoid inconsistent financial management and disorganized systems, which is often the case with an in-house accountant or bookkeeper.
Benefits of Virtual Accounting Services for Businesses
Ever thought of the things that can go wrong with in-house accounting. Having one person in charge of all your bookkeeping and accounting certainly has its risks. For starters, it gives a greater opportunity for fraud because if it’s one person overseeing all your books then it becomes easy to cover up errors or inconsistencies. Additionally, in-house accounting has the following drawbacks:
- Incompetency due to lack of skill and experience
- Overhead costs associated with full-time staff
- Unreliable performance, varying skill sets
- Few internal controls
- The in-house staff may be given additional duties that detract from their core role
A virtual CPA firm gives small businesses an opportunity to have all their accounting and bookkeeping needs met without having to hire another full-time staff member. To start with, a business can effectively use its resources by paying only for the work they need to be done. This could be a great solution for larger organizations with an in-house accountant but that require additional assistance. The virtual accountant can easily integrate existing systems and work seamlessly with the in-house team to provide all the assistance they need.
FBAR (Foreign Tax Credits Or Deductions)
For all the taxes you paid in Canada, you can make a claim for foreign tax credit on your United States tax returns. If you are a green card holder or a U.S. citizen, you must file the 1040 form on yearly basis if you meet a certain income threshold.
You may be subject to S.E. tax exemption if you reside in Canada and you are exempted by the Canadian U.S. social security agreement. You will have to file disclosure to this exemption with the 1040 Form.
Other than filing the 1040 Form every year, you may be subject to additional tax reporting. Additional tax reporting may apply if you are a beneficiary or if you own Canadian Mutual Funds. You are also subject to additional U.S. tax reporting if you own or are a beneficiary of Canadian RPPs, RESPs, RRSPs, and TFSAs.
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