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.

I DON'T PAY ANY TAXES

Ask any business owner what kind of financial information they want to report and you'll probably hear this: "income and no taxes please!" While a polite request, the two words do not work in the same sentence. Let's face it, the financial statements are intended to show the true picture of the companies performance and good performance means taxes are going to be paid. When you hear anyone say they are doing well but pay no taxes. There are only two reasons for this to happen. 1. they are really losing money or 2. they are lying. Taxes are a certainty, the best we can do, is to pay the lowest amount legally possible.

WHY IS MY BANK SO NOSEY?

If that is what you are feeling about your own banking relationship, it's probably because they do not understand your business and how you operate. When you are borrowing money from the bank, you can never give too much information to support your business banking relationship. Think of your banker as your advocate and be willing to share financial and other information to improve your borrowing limits. When it comes time to increase your operating line or take on new debt it will pay off in spades.

WHAT IS A GOOD EXIT STRATEGY?

Answer: A planned one. Too often our focus on growth, day to day operations etc cloud our long-term objective of how are we going to exit our business. But even if you're years away from cashing out from your company, a formal exit strategy will allow you to leave on your own terms. Think about when and how you'll leave the business. Do you intend to you pass it on to family or sell to partners or existing staff? Other considerations are how you'll structure the transition and how to finance it.

PAY THE PREMIUMS ON YOUR DISABILITY INSURANCE.

If you receive disability insurance, it will be tax-free if you have paid the insurance premiums, or if the employer paid the premium for all employees, and included the amount as taxable income of each employee. If the employer pays the premiums and they are not treated as taxable income for all employees, then any disability insurance received will be taxable to the employee.

WHY SHOULD YOU MAKE A WILL?

It is a common misconception that having a Will made is expensive or that a person does not have anything of value, which would justify a Will. Remember that a Will covers not only existing assets but future wealth as well. If you die without a Will, money which would otherwise pass to your beneficiaries will essentially be diverted to the court system and lawyers while your affairs are sorted out. Without a Will the timing and distribution of your property will be determined by provincial law which may be markedly different than your wishes. Expect delays in the processing of your estate which will undoubtedly create unnecessary hardship on your family and business partners. A properly drafted Will can play a critical role in tax planning where there could be serious income tax consequences at death. (Mark Standerwick is a partner with Campbell Froh May & Rice, a Richmond law firm serving the lower Mainland since 1974.) .

RETIREMENT CALCULATOR

How much do I need to retire? Good question, and has many answer based on an array of assumptions. To test your plan, Finance Canada has a handy calculator to let you set some goals. A very good planning tool. http://finance.canada.com/calc_retirement.htm
Once you are there, check out some of the other useful calculators.

www.couzelis.com

| Contact|