The articles are intended to keep you up to date on trends and issues that may impact your business and personal financial affairs. Please contact us if you have questions about any of the issues discussed.

This month, see special contributions by
Jim Hoggan and Bill Scott!!!

What is an accountability Partner?
Should I have one?

When a business owner surrounds themselves with people who always agree with them, you will find the chances of their success is limited. Constructive criticism makes an owner re-think and support the direction they are leading the company. Every owner should find an accountability partner to work with, who is not effected by the daily business activities. This person should be someone you completely trust and will be available to sound off business ideas and decisions. And yes, everyone needs one.

Is anything tax-free in Canada?

Well not a lot, but there is one small item that CCRA says is perfectly acceptable. So to honour employment achievements such as years of service, meeting safety standards, or to mark special occasions such as Christmas, Hanukkah or birthdays, employers can give their employees two non-cash awards per year on a tax-free basis. The yearly limit on this tax-free gift is $500.00 per employee and cannot be cash or near cash like gift certificates.

Year-End tax planning Checklist

Now is the best time to start thinking about items that will reduce your tax burden at years end. Remember a good tax saving idea for 2003 does not work in 2004. (RRSP's excluded) Timing of a bonus, dividends, or capital tax loss selling may be more advantageous now then next year. Sitting down with a professional to run what if calculations are the best way to determine what steps you should take. And of course we highly recommend Couzelis & Company to assist you in this area.

What is CCRA looking for when they call to perform an Audit? $$$$

For the record CCRA conducts regular routine audits focused on entertainment, personal use of automobiles, shareholders account activity and travel. Travel ranks high as an area the auditor can win some tax dollars, because of inappropriate documentation. If you are audited by CCRA there is a good chance you will need to support the business nature of your travel expenses. Too often the documentation is in such a state, the person who went on the business trip is unsure what they did. Here is a good checklist to follow to avoid the tax trap of business travel.

All travel to be documented via a chronicle that outline

1. Purpose of trip,
2. Attendance by which employees,
3. Length (days) of conference, trade show, board meeting or retreat,
4. Notes on benefits of trip via awareness, sales recovery, staff development etc.,
5. All travel should be included under this reporting format, including travel reimbursed by customers,
6. Agenda's can form part of support documentation,
7. Customer business cards should be included with all travel receipts,
8. Notes from meetings should be included if they are not deemed confidential or expose competitive intelligence.

And yes one more item, you can make one trip a year to a nice place to hold your Board Of Directors meeting, and it will be deductible for tax purposes. JUST MAKE SURE YOU FOLLOW THE 8 POINT CHECK LIST.

If you don't tell them, they will make it up
and it WILL BE BAD!

Corporate mergers, acquisitions and restructurings create an almost insatiable need for timely and accurate information. Employees want to know how change will affect them personally and they want to know now. If management doesn't provide this information quickly and candidly, the rumor mill can unleash a flood of misinformation. Research shows that employees who receive early and frequent communications about corporate restructurings are less likely to display stress about the change, are liable to be less concerned about their own futures and are more satisfied and committed to their jobs. They are also more likely to believe the company is trustworthy and caring. (Jim Hoggan is the President of James Hoggan & Associates Inc., one of Canada's most respected Public Relations and Investor Communications Firms).

Want to Better Motivate Your Employees and Spend Less?

Motivating employees is an ongoing issue for many organizations. Contrary to popular belief, most employees are not motivated primarily - or even, chiefly - by financial compensation. Research consistently shows that managers over-emphasize the impact of extrinsic motivators such as salaries, promotions, and bonuses and under-estimate the affect of intrinsic motivators such as satisfying, challenging and meaningful work. Ironically, the evidence suggests that managers who want to better motivate their employees ought to quit trying to throw money at them. Instead, they should find out what their staffs find challenging or meaningful about their work and find ways to accentuate those features. (Bill Scott BSW, MBA is a management consultant specializing in helping clients get the most out of their human resources.)

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