Trusted Tips and Resources
Find A Trusted Saskatoon Business:

Trusted Tips & Resources

Trusted Saskatoon Financial Advisors at Wiegers Financial & Benefits Explain How To Make The Most of Your RRSP

9. Sep 2023 Admin Saskatoon Financial Services, Trusted Tips

Wiegers Financial & Benefits is one of the largest private financial planning and employee benefits consulting firms in Saskatchewan. Their Financial Planning Division provides business owners, households, retirees, and students with expert investment and insurance planning services to help them reach their long-term financial goals. They also have a Benefits and Personal Insurance planning division. 


HOW TO MAKE THE MOST OF YOUR RRSP

Matching each saving option to your specific financial situation

Building savings can be challenging; there are plenty of other things to spend your money on.  That being said, the satisfaction of watching your savings grow will likely outlast the thrill of your latest online purchase.  To maximize your savings potential, you can add guaranteed investment certificates (GICs), mutual funds, segregated funds, stocks and bonds to your registered retirement savings plan (RRSP) or tax-free savings account (TFSA)[1]


Accelerate your savings

Here are a few options you can consider to make the most of your contributions:

  1. Pay yourself first with a pre-authorized chequing contribution plan.

A pre-authorized chequing (PAC) contribution plan helps you make regular, automatic contributions to your investments. It’s “paying yourself first” by treating regular savings like any recurring payment. This strategy is more effective because contributing more frequently gives you the advantage of dollar-cost averaging.[2]

Talk with your advisor or investment representative about adding an option that gradually increases the amount you contribute over time. It’s like giving your investments an annual raise, which can make a big difference to your savings.


  1. Catchup on unused RRSP contribution room with an RRSP loan

An RRSP loan can boost your savings by allowing you to catch up on RRSP contributions[3]. By catching up on contributions using a loan, you’re giving your investments the most available time to grow[4]. It helps you now and in the future because it:

  • It gives you more money earlier to grow your investment.
  • Potentially creates a larger nest egg down the road.
  • Reduces this year’s tax bill through an income deduction equal to the amount of your allowable RRSP contribution.

Borrowing your RRSP contribution doesn’t have to be costly. You can use any tax refund to help pay down your RRSP loan, which means you’ll benefit from tax advantages right away.

Despite the advantages, RRSP loans aren’t suitable for everyone.


  1. Contribute to a spousal RRSP

In a spousal RRSP, the higher-income spouse makes an RRSP contribution and claims the tax deduction, but the other spouse owns the plan and the money in it. Spousal RRSPs are generally used to equalize income during retirement, lowering the overall family tax rate as a result.

This type of plan can be advantageous if one spouse earns a higher income than the other. Any contributions made by the higher-income spouse will reduce his or her individual RRSP contribution room for the year but won’t affect how much the lower-income spouse can contribute to his or her individual RRSP.

If a spousal RRSP annuitant withdraws an amount from the account, all or part of the withdrawal would be taxed to the contributing spouse and not the annuitant to the extent that contributions were made in the year of the withdrawal or the previous two calendar years.

When it comes to investing, the earlier you start, the better.  If you have any questions, please speak with your financial advisor.


Taylor Szeto, B.Comm.

Insurance Representative, Wiegers Financial and Insurance Planning Services Ltd.

Account Representative, Manulife Securities Investment Services Inc.


Contact them today for a no-obligation consultation to determine how they can help you.

Wiegers Financial & Benefits Is A Trusted Saskatoon Financial Advisor 

The opinions expressed are those of the author and may not necessarily reflect those of Manulife Securities Investment Services Inc.

Mutual funds are offered through Manulife Securities Investment Services Inc. Insurance products and services are offered through Wiegers Financial & Insurance Planning Services Ltd. Banking products and services are offered by referral arrangements through our related company Manulife Bank of Canada.

[1] If you want to add segregated funds to your RRSP, you must be 16 years of age (18 in Quebec). If you want to add segregated funds to your RRSP, you must be 16 years of age (18 in Quebec).

[2] Dollar cost averaging means investing smaller amounts at regular intervals, rather than saving up to invest in one lump sum. It can help you avoid jumping into the market at peak times by purchasing more fund units when values are low and fewer fund units when values are high.

[3] While borrowing to invest has many potential benefits (investing an initial lump sum creates greater potential for compound-growth compared to making smaller regular investment purchases), leveraging also has potential risks (market volatility may result in poor investment returns and the possibility of owning more on the loan than the investments are worth).

[4] RRSP loan proceeds cannot be used to fund TFSA contributions

10 Benefits of Cloud Accounting Software By Trusted Saskatoon

18. Feb 2023 Admin Saskatoon Bookkeepers, Trusted Tips




10 Benefits of Cloud Accounting Software for Business

More and more business owners are turning to cloud accounting software to manage their business’s finances. If you haven’t yet tried it, here are 10 ways online accounting software can help your business.

Save time with automation

Don’t waste time posting and chasing invoices. Cloud accounting software automatically generates invoices— as well as reminders — at regular intervals, meaning you don’t have to manually keep track of debtors. If you combine your accounting software with HR and Payroll applications you can also automatically generate payslips and other HMRC documents.

Work from anywhere with an internet connection

Cloud accounting software means you no longer need to worry about maintaining spreadsheets or installing a program on one machine. The cloud allows you to log in to your business’s account anywhere with an internet connection. Once you sign up, you can get started straight away.

Value for money

Instead of paying a huge one-off fee for accounting software, with the cloud, you can spread the cost by paying monthly — helping you to manage your business’s cash flow. If you do prefer to pay upfront, you’ll benefit from a discount.

Up-to-date data

Automated bank feeds allow you to keep track of your business’s balance sheet in real-time. You can also view a variety of reports that give an up-to-date snapshot of your business finances. Online accounting software makes it easier to get closer to your business and gives you a clearer picture of your finances as a whole.

Keeps your information secure

As your data is saved on a secure cloud server and is constantly backed up, you don’t need to worry about your data being hacked or compromised. Even if your computer crashes, everything is still saved in the cloud.

Intuitive and easy to use

Cloud accounting software makes accounting easy for people who may not have much experience in managing financial accounts. The software is built with non-accountants in mind and help guides are available every step of the way.

Community of fellow business owners

A side benefit of joining the cloud accounting software revolution is joining an instant network of fellow business owners whom you can meet and chat with via community forums and business events.

Give access to multiple users and set permissions

If different people manage different elements of your business, it’s easy to add multiple users to your account and tailor permissions so that people with specific job roles only see what they need to.

Software is consistently updated and improved without you having to do anything

Rather than having to wait for a new integration of a program, cloud accounting software is constantly updated by in-house developers. This means that if things change, cloud software is agile enough to keep up-to-date in real-time. In addition, unlike desktop accounting software programs, these updates are free and included as part of your monthly subscription fee.

Collaborate easily with your accountant

In the past, it was common for business owners to chat with their accountant once a year at year-end — leading to one huge pile of work. Cloud accounting software lets you share your accounts with your accountant throughout the year and work together regularly.



Trusted Saskatoon Bookkeeping & Tax Tips If You Have Missing Tax Slips

18. Feb 2023 Admin Saskatoon Bookkeepers, Trusted Tips

Missing a Tax Slip? Here's How to Find it and What Happens if You Don't

Walk into a Canadian household in April and you’ll likely find a kitchen table littered with receipts and pairs of reading glasses. Yet with all the receipts and tax slips you’re supposed to keep, it’s likely some are going to go missing – and a missing slip can mean a big swing in your tax bill. Before you go ahead and file your return, you’ll want to do your due diligence to avoid any penalties for missing or inaccurate information.

Check your account online

My Account for Individuals is a great place to start to check your info. Logging into your account, you should be able to find online versions of your T4 slips. You’ll also be able to check carry-forward balances like tuition credits or capital losses, as well as your RRSP contribution limits. While you’re there, you can also sign up for a direct deposit to get your refund faster and deposited directly to your bank account.

Call the CRA

Only some of your tax slips will show up in My Account, namely the slips that begin with T4. To verify all your tax slips that the CRA has on file, particularly ones that relate to investments, you can call the Individual Enquiries line at 1-800-959-8281. Before you call, make sure you’ve got your SIN and last year’s tax return handy (which you can view online). After answering a few security questions, you can ask to confirm the slips they have on file for you and compare their records to yours to see if you’ve missed anything.

How do you know if the CRA has all your slips?

The majority of T3s, T4s, and T5s will all be processed through the CRA’s system. As the processing of these slips requires a SIN, the income on the slip is then attributed to you which you can then verify when you call the CRA.

‍However, not all slips go through the CRA’s system.

‍Certain slips such as T2202As for tuition deductions, T5008s for capital gains and losses, and RRSP contributions are not always processed by the CRA. While the rules differ across the various types of tax forms, some slips can be generated independently and don’t have to go through the CRA’s system first. For these slips, you’re going to want to track them down from the source provider since the CRA won’t have them on file.

For example, if you know you’re meant to receive a tuition credit, call the school to grab your form. If you’ve made some stock trades in the year, call your bank to grab a gains and losses report. Unfortunately, there’s no fool-proof way to know that you’ve got all these types of slips – you’ll just need to remember!

What happens if you still miss a slip?

If you file your taxes with a missing slip, don't expect a collections officer at your place. If the missing slip contained only a small amount of income, you may get lucky and the CRA may just ignore it. On the other hand, if it’s a significant amount of income, you may be automatically reassessed.

When this happens, as long as you’re in a refund position, you likely won’t have the interest to pay. Unfortunately, if the swing is big enough to generate a balance owing, you may have some interest to cover. If you missed a significant slip that the CRA does not have on file such as a tuition slip, not to worry, you can file an adjustment to your return down the road if you’re able to track it down. Before you file your return, double-checking that you’ve got all your slips covered will mean a faster refund, no interest, and less stress!




Your Ultimate Tax Checklist From Trusted Saskatoon

17. Feb 2023 Admin Saskatoon Bookkeepers, Website

Your Ultimate Tax Checklist 

It is that time of year again… tax season! If you are like most people, doing taxes is something you view as a dreaded task or you procrastinate doing. Do not fear, we have a helpful Tax Season Checklist to make doing your taxes easier to organize. This list will outline all the things we could need from you in order to prepare your income tax return. 

Tax Slips

  • T4 slips (Employment income)
  • T4e Employment Insurance benefits
  • T4A (other pensions, annuities, and certain scholarships)
  • T4AP (CPP benefits)
  • T4 RSP (RRSP income)
  • T4 RIF (RRIF income)
  • T4 A-OAS (old age security)
  • T3 (Mutual Funds, REITs, ETFs) 
  • T5 (investment income – interest, dividends, certain capital gains)
  • RC62 (Universal Child Care benefits)
  • T5007 (Social assistance payments/Worker’s compensation benefits)
  • T2202A (Tuition/education receipts)
  • T5031 (partnership income)
  • T2200 (Condition of employment/allowable employment expenses)
  • All other information slips

Receipts

  • RRSP contribution slips
  • Medical expenses
  • Support for a child, spouse, or common-law partner
  • Transit pass receipts
  • Charitable donations
  • Office-in-home expenses
  • Moving expenses (including realtor’s commissions)
  • Exams for professional certification
  • Carrying charges and interest expenses
  • Other interest expenses
  • Political contributions
  • Childcare expenses
  • Adoption expenses
  • Children’s arts and sports expenses
  • Tool expenses (tradesperson)
  • Interest paid on your student loans
  • Professional or union dues
  • Attendant Expenses for the disabled person
  • Other Documentation
  • Notice of Assessment/Reassessment
  • CRA Correspondence
  • Amounts you have paid in tax installments
  • Rental income and expenses
  • The sale or deemed sale of stocks, bonds, real estate, etc.
  • Disability tax credit certificate
  • Business, farm, or fishing income or expenses
  • Northern resident’s deduction receipts
  • Commission employee expenses
  • Automobile/Travel logbook and expenses (self-employed and commissioned employees)
  • Volunteer firefighter’s certification
  • Graduate Retention Certificate
  • Search and rescue volunteer certificate
  • Legal expenses to collect alimony, pension, or retirement allowances

Other Documents

  • Notice of Assessment/Reassessment
  • CRA Correspondence
  • Amounts you have paid in tax installments
  • Rental income and expenses
  • The sale or deemed sale of stocks, bonds, real estate, etc.
  • Disability tax credit certificate
  • Business, farm, or fishing income or expenses
  • Northern resident's deduction receipts 
  • commission employee expenses
  • Automobile/travel logbook and expenses (self-employed and commission employees)
  • Volunteer firefighter's certificate
  • Search and rescue volunteer certificate
  • Legal expenses to collect alimony, pension, or retirement allowances



Categories

Previous Posts

TRUSTED SASKATOON

CONNECT

ADDRESS

S & E Trusted Online Directories Inc
TrustedSaskatoon.com
310 Wall St #209
Saskatoon, SK   S7K 1N7
Ph: 306.244.4150

GET THE APP

App Store Google Play
Trusted Websites: Trusted Regina   |   Trusted Marketing Services
© 2024 Trusted Saskatoon. All Rights Reserved.   |   Log in
Follow us on Facebook Instagram Linked In Twitter YouTube RSS Feed
Abex
Abex
Stevies
Sabex
NEYA
Website hosting by Insight Hosting