Professionals and Business Owners - Edwin Law, Chartered Accountant, CFP, Tax, Financial Planning, Audit

By: Edwin Law  09-12-2011

Professionals and Business Owners - Edwin Law, Chartered Accountant, CFP, Tax, Financial Planning, Audit

There is no doubt that our Canadian economy is in a better shape than the rest of the world, especially Europe and our neighbour in the U.S.  However,  in reality, we are not completely immune from the adverse impacts of this global economic downturn which is affecting every industry and sector.  While the credit crunch continues to squeeze the worldwide supply of capital, the lenders remain cautious in managing their credit risks. Companies needing to refinance or obtain waivers or amendment to their existing finance arrangements are facing an unpredictable response from their lenders.  How should you, as the business owners, deal with your bankers during this economic downturn led by a credit crunch?


If you are a business owner and your business is growing at a tremendous pace, you should find the time to talk to your professional adviser whether your timing is right for an estate freeze.  After all, you deserve to keep as much of your hard-earned wealth as permitted under the laws.


As with all other income and expenses of your business, you need to keep sufficient record to support your business use of a motor vehicle and all the related motor vehicle expense.  If you use more than one motor vehicle for your business, keep a separate record for each vehicle that shows the total and business kilometer you drive, and the cost to run and maintain each vehicle.  Each vehicle’s expenses need to be calculated separately.  For ease of keeping records, you may want to designate different credit cards for payments of different vehicle’s expenses.



Other products and services from Edwin Law

09-12-2011

Corporate Tax Planning - Edwin Law, Chartered Accountant, CFP, Tax, Financial Planning, Audit

If you pay the same remuneration for an individual's services rendered, it would cost your business less if the individual is hired as an independent contractor, and not as an employee. Corporate Tax Planning - Edwin Law, Chartered Accountant, CFP, Tax, Financial Planning, Audit.