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11-09-15 5:14 PMNews from Institute of Professional Bookkeepers of Canada

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January 18th, 2011

Welcome to IPBC's TOPICS and TIPS Newsletter.It is our commitment to provide timely and informative content to our members and the public.Your feedback is welcomed and encouraged on topics, content, and inquiries.

Our Sponsors

Alan Salmon The Institute of Professional Bookkeepers of Canada is pleased to announce that Alan Salmon is now a regularcontributor to the IPBC newsletter. Salmon, best known for his many contributions in the area of accountingtechnology, is pleased to offer his support by way of a regular column in the IPBC newsletter. They will be publishedevery 2nd month. Alan has been writing and publishing articles for more than 20 years. As CEO of K2 Enterprises Canada, he is responsible for the Canadian operations of this international consulting groupwhich provides professional development technology education for CAs, CPAs, and accountants across Canada andthe US. Salmon has more than 27 years of experience in business, management systems, education, and journalismand a degree in Science and Advanced Teaching Certificate from the University of Toronto. Salmon has receivedmany awards for teaching and service, including a Paul Harris Fellowship, the Canadian Internet Award, and a lifemembership in Junior Chamber International. Every year, Salmon teaches more than 150 seminars to the CA, CGA, and CMA associations in Canada. For the last15 years he has also been the Chairperson for the Accounting Technology seminar series. Salmon travels extensivelyacross Canada and the United States to speak at major computer conferences. He has also been the featured speakerat the Lions Clubs International World conventions in San Diego and Birmingham, England, where he shared hisInternet experiences with more than 3,000 Lion members. In addition to his seminar work, Alan also consults with major accounting technology companies. In the last two years,he has worked with Microsoft, Sage, Intuit Canada, SAP, SYSPRO, Softrak, Fortune 1000, TelPay, and otherCanadian technology companies. He has published six books on accounting software, and each year, in conjunction with his K2E partners, he developsa series of comparative tables that contrast the feature sets of accounting software. You can view these tables at hiswebsite: www.salmon.ca. His extensive industry contributions aside, Salmon enjoys traveling. He has visited more than 60 countries andcompleted nine 'around-the-world' journeys. When he's not traveling, he lives in Brampton, Ontario, with his wifeNancy. IPBC is thrilled with the addition of this very accomplished contributor to our newsletter. IPBC is Canada's largest and most influential bookkeepers association in Canada. Watch your email over the next fewweeks for important announcements to be published on new benefits and programs. Thank you for all your support. December was a record month for new members. With the added member benefits and value added programs, IPBCmember retention rate is still the highest in the industry. All of us at IPBC have a renewed passion to bring you theresources and education you need to take your business to a higher level.

Tax Tips

The Canada Revenue Agency's Tax-Free Savings Account tips: What youneed to know

The Tax-Free Savings Account (TFSA) is an important investment vehicle that can be used for many different savingsobjectives over an individual's lifetime. Since the introduction of the TFSA in January 2009, over 4.8 million Canadianshave opened one or more TFSAs. To get a TFSA working for you, here are a few key points to remember: A TFSA can be made up of an array of investments. Your TFSA can contain different types of investments, similar to those in a Registered Retirement Savings Plan, such



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Your TFSA can contain different types of investments, similar to those in a Registered Retirement Savings Plan, suchas Guaranteed Investment Certificates (GICs), bonds, mutual funds and stocks. Contact your financial institution formore information concerning eligible investments. TFSA contribution room accumulates every year. The maximum TFSA contribution room for an individual was $5,000 for 2009. For 2010 and 2011, your available TFSAcontribution room is made up of three components:

Your annual TFSA dollar limit of $5,000,Your unused TFSA contribution room from the previous year, andThe total amount of withdrawals from your TFSA made in the previous year.

Example 1 If you contributed $5,000 in 2009 and only $2,000 in 2010, then you could contribute $8,000 in 2011. This amountincludes the $3,000 unused contribution room from 2010 plus $5,000 for 2011. Example 2 If you contributed $5,000 in both 2009 and 2010 and then withdrew $10,000 in November 2010, your contribution roomfor 2011 would be $15,000. This is calculated using your annual dollar limit of $5,000 for 2011 plus the $10,000withdrawal made in 2010. Withdrawals are not added back to your contribution room until after the end of the year.It is important to note that while you can open more than one TFSA, your total contributions in a year cannot exceedyour available TFSA contribution room. Income earned in a TFSA. Income such as interest, capital gains and dividends accumulates tax-free in your TFSA and withdrawals made fromyour TFSA are not taxed. Except for certain transfers, any withdrawals from your TFSA, including the income earned,will be used in the calculation of your TFSA contribution room for the following year. Transfer your TFSA directly from one financial institution to another. If you have more than one TFSA, you can transfer funds directly from one of your TFSAs to another of your TFSAswithout affecting your contribution room. The direct transfer must be completed by your financial institutions. If youwithdraw funds on your own from one TFSA and contribute those same funds to another TFSA, the re-contribution willbe considered to be a new contribution. As a result, your TFSA contribution room will be affected and you may besubject to a tax on excess contributions. TFSAs are different from regular savings accounts. It is possible to make multiple contributions and withdrawals throughout the year to your TFSA like you would with aregular savings account. However, your total contributions in a year cannot exceed your available TFSA contributionroom for the year or you would be subject to a tax on excess contributions. This tax is based on the total contributionsmade to your TFSA in a year and not on the account balance at the end of the year. If you deposit more than your contribution room you will be subject to tax. If, at any time, your contributions in a year exceed your TFSA contribution room for the year, you will be subject to theTFSA tax on excess contributions. You are liable to a 1% tax per month on your highest excess TFSA amount in eachmonth. This tax will accumulate until the excess amount is withdrawn. If you have excess contributions you shouldwithdraw the funds immediately to avoid any additional tax. Find out today how a TFSA can work for you. Take the time to familiarize yourself with the rules. If you have questions,contact your financial institution or the CRA at 1-800-959-8281 or visit our Web site at: www.cra.gc.ca/tfsa.

In The Forum

In The Forum is a monthly column that summarizes a popular topic discussed in the forum at some time in the recentpast. Every bookkeeper knows that what you learn in the classroom doesn't always translate to the real world. TheIPBC Forum is a place where peers assist each other and share their knowledge. Workers Compensation There have been a few different forum conversations these past few months on Workers Compensation. Here is asummary of one discussion. A question arose on how to determine if and when you have to pay workers compensation on subcontractors in theconstruction industry. Bookkeepers weighed in from Ontario, Saskatchewan, and British Columbia. As workers compensation is provincially regulated, each province has its own set of regulations. Therefore, a goodplace to start looking for information is the resource The Association of Workers' Compensation Boards of Canada(www.awcbc.org).



(www.awcbc.org). On this website, you can find the acts, regulations, and policies for each province and territory as well as jurisdictionalcomparisons and website links to each board in Canada. In all provinces "both a principal and any contractors or subcontractors of that principal are liable for assessments". Insome provinces, it is the principal's responsibility to ensure a contractor files a statement or ensures that a contractorpays or is liable. Bookkeepers in B.C., Saskatchewan, and Ontario shared that you need to obtain a clearance letter to determinewhether a subcontractor is registered with WCB and that their premiums are up-to-date. If a subcontractor is notregistered or has fallen behind (has not paid the required premiums), you may be required to provide coverage. Youcan find links to obtaining a clearance letter for your province at awcbc.org> resources> employer resources>clearance certificates. A Saskatchewan bookkeeper also suggested that subcontractors determine if the contractor they will be working for isin good standing before they take a job. Why? To ensure they are not liable for a portion of the contractor's premiums. An Ontario bookkeeper added that premiums were not assessed on board of directors who are not active in thebusiness or subcontractors (such as bookkeepers) if their work was not performed anywhere on or near the job site. If you are unsure of your position and don't want to speak directly with WCB, some provinces have legislated anEmployers' Advisers (or Advocates) Office that works independently of WCB. In B.C., there is no cost to utilize theirexpertise, as the cost to run their office is included in your assessed premiums. For more information, go to awcbc.org>Legislation / Policy> Legislation - Comparative tables> Workers Compensation Legislation A-Z> Advisors (WorkersAdvisors, Employers Advisors)> Appeals - Advisors> Employers' Advisors is on the second page. In addition to the above topic, WCB and casual labor (including the definition of casual labor and when labor can beclassified as casual) was discussed as well as how to set up your chart of accounts to ease the preparation of yourworkers compensation reports. Another post on payroll provided a reminder readers to not forget to input the new WCB rate before doing your firstpayroll in January. WorkSafeBC offers the publication Small Business Primer - A Guide to the WCB which is a great resource. This is only one example of the help members get in IPBC's Forums. Why not become a member now and see foryourself the benefits of membership?

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The information and materials in this column are provided for general information purposes only and are not intendedto constitute legal, accounting, or tax advice or opinions on any specific matters. Laws and regulations changefrequently, and their application can vary widely based upon facts and circumstances involved. You, and not IPBC orLakeshore Bookkeeping Services, are responsible for the applicability and accuracy of information as it relates to yourspecific situation.

This column is written by Laura Kenway BComm CPB dba Lakeshore Bookkeeping Services. She provides free ofcharge at Bookkeeping-Essentials.com an online Small Business Accounting Resource dedicated to supportingwork from home business owners who do their own books.

Member Profile

My name is Louie Prosperi and I have been in the accounting industry for 20 years. I have worked as a Vice Presidentof Finance for a company in the construction industry for eight years, and six years in Chartered Accounting firms onsmall business clients. Currently, I have opened a consulting company called Paall Corporation that provides a varietyof accounting, bookkeeping, and management services. I was introduced to IPBC in September of 2008 and became a member in the same month after talking to GordonSkillen and Leslee Tapella. The IPBC is the only organization in Canada that is providing and developing a certificationdesignation for bookkeepers. This is long overdue and needed in the accounting service sector. In my experiences withclients over the years, the degree of competence of work I have seen from bookkeepers has varied greatly from verygood to terrible. An organization like IPBC is needed for professional bookkeepers to call their own. An organization like IPBC who is working hard in developing education standards, ethical code and practices, andproviding much needed resources can only benefit all bookkeepers as a whole. The IPBC Certified ProfessionalBookkeeper (CPB) will tell clients that this person met a level of technical expertise, is required to follow a code ofethics, and maintain that level of professionalism through the continuing education requirements.



ethics, and maintain that level of professionalism through the continuing education requirements.

As a member, I have personally benefited from the bi-monthly newsletters and access to tax courses that I was notexposed to prior to joining IPBC. Prior to joining IPBC, my source of continuing education was to look for courses onmy own through colleagues in CA firms, and taking courses when they were provided by CA or CGA associationswithout the discounts offered for being an IPBC member. The IPBC courses are not only focused on technicalknowledge in tax and accounting. The institute goes further in offering seminars in marketing, growing your business,and other topics that are important and very useful to a professional bookkeeper. I would not have had access to theseseminars, courses, and webinars if I was not a member of IPBC.

Another benefit of being a member is the access to regional meetings. These meetings are held monthly in every areaof Canada. They provide a forum for networking with other professionals in the area and IPBC provides a guestspeaker to come to these events and speak on relevant topics. In the past, they have had speakers from RevenueCanada discuss changes in the tax system, such as the HST. The meeting in my area for the 31st will have a guestspeaker coming in to present to our members a new product called "Bookkeeping in a Box". This product is to helpprofessional bookkeepers in streamlining those clients that come in with a shoe box of receipts. Since personal taxseason is starting, the product would seem to be a good fit for proprietorship clients. IPBC is continuing to partner up with other organizations to offer member discounts on business insurance andsoftware packages, courses, and other resources that we all need to develop and maintain our practices. Even though the organization is only three years old, I have benefited from my membership both as a resource centreand their continuing education program. Currently, I am on the by-law, process, and ethics committees. Theorganization has also established committees on education standards. The certification and member resources that IPBC provides benefits all bookkeepers and ultimately, our clients. Itassures them that they have a highly trained, ethical, and professional bookkeeper.

Yours truly,Louie ProsperiPresident of Paall Corporation

Website and E-mail Services

What image are you portraying to your prospective clients? In this day and age, your clients are expecting you to havea website at the very least. IPBC has teamed up with Bookkeepers Web Design to help you get a website set upquickly, easily, and for very little money. Check out their website at www.bookkeeperswebdesign.ca

If you are looking for a more professional image and increased revenue, a website should be the first place you start.

If you believe that you don't need a website, at the very least get a professional email address [email protected]

Visit www.bookkeeperswebdesign.ca/plans/bwd-email for more information.

Save $$ on Fuel

Are you driving to client's work sites? Save 2.5 cents a litre on Shell fuel as an IPBC member. The savings alonecan pay for your membership.

Visit www.ipbc.ca/membership/toolbox.aspx#ShellTriton for more information. Members, visit "My Desktop" to find theapplication on the Special Offers page.



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Partner Spotlight: Intuit Quickbooks Financial Software



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2009 BenchmarkStudy

Welcome to IPBC'sTOPICS and TIPSNewsletter

It is our commitment toprovide timely andinformative content to our membersand the public.Your feedback is

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IPBC NEWS DESK

From The Executive Director's Desk

Thanks to Prince George, BC member Selena Laing for sharing her new client checklist, complete with drop downmenus. It is a great tool for gathering important information about your clients. As suggested on the forum, Selena hasoffered it to you: it is available from My Desktop (member's only.) December, normally a slow time a year for IPBC was in fact a record month. 36 new members joined IPBC. One of thenew members even joined on Christmas day, a present she gave to herself that will keep on giving all year round.With the number of benefits increasing over the next few months, we anticipate a large increase in membership. Keepyour eyes on the newsletter for information on the new benefits and always feel free to contact Gordon Skillen [email protected] or 866-616-4722 with any suggestions. Imagine networking with some of the top bookkeepers in the country. Imagine the chance to be on the fast track to amore lucrative practice . . . to being a Certified Professional Bookkeeper (CPB) . . . and to receiving greaterprofessional recognition inside and outside of this network. Regional Meetings are a vital part of that formula forsuccess. They're a unique chance to combine learning - a guest speaker shares expertise that's sure to make your work a biteasier - with fun and powerful networking. Most meetings are free to attend.

ALBERTA

IPBC Edmonton Regional MeetingTop 10 Income Tax Problems and HST Highlights for Alberta based businesses - Presented by: Bill Poon from CRA

January 20, 2011 at 6:00 PM Click here for more information

IPBC Calgary Regional MeetingPreparing the year end records for review or audit - Presented by: Stella Penner, CGA Partner, Lo Porter Hetu


BRITISH COLUMBIA

IPBC South Cariboo Regional MeetingA Roundtable on year-end challenges

January 26, 2011 at 5:30 PM



Your feedback iswelcomed andencouraged on topics,content, and inquiries.

Click here for more information

IPBC Prince George Regional MeetingUnleashing excellence to deliver outstanding business results. Inspiration...Execution... Leadership

January 27, 2011 at 6:00 PM Click here for more informatio

IPBC Vancouver Regional MeetingApplication of the GST/HST to Non-Profit Organizations - Presented by: Bill Burdon, from CRA


ONTARIO IPBC Leamington Regional MeetingBill 168 - How safe are your client's employees and your client's bottom line - Presented by Phyllis Balkwill from "BigHelp"


IPBC Toronto Regional MeetingHow to Empower Your Clients and Increase Your Productivity - Presented by: Loreana LaCaprara


National Phone ConferencesBusiness Acceleration Boot Camp - Deborah Reynolds, About Face Image Consulting

January 26, February 23 and March 30, 2011 at 11:30 AM Click here for more information Diversity in Today's Workplace: "Do or Die" - Gobinder Gill

February 9, 2011 at 11:30 AM

Click here for more information

Upcoming Regional Meetings Saskatoon - January 26th - TBAGrande Prairie - January 26th - TBA

Words To Inspire

"I do the very best I know how - the very best I can; andmean to keep doing so until the end. If the end brings meout all right, what is said against me won't amount toanything." -Abraham Lincoln



-Abraham Lincoln1809-1865, Sixteenth President of the United States

Do you have a Website?

If you are an IPBC member, you should proudly be displaying the IPBC logo along with a link, so your visitor canlearn a little about your professional association. Membership in IPBC gives you an edge over your competition.

Show the world that you belong to a professional association for professional bookkeepers by adding the IPBC logoto your web site and e-mail signature with a link to IPBC's Mission Statement page.

In Outlook, click 'Tools', followed by 'Options', 'Mail format', 'Signatures', and 'New' or 'Edit', depending if youalready have a signature. Then copy and paste the logo below into this spot. Click 'OK'.

Feel free to contact us at [email protected] with any questions.

Do you have a story to share, or words of wisdom? The purpose of the IPBC newsletter is to assist Canadian bookkeepers with tools, ideas, and resources to make yourbusiness efforts easier, and to help your business grow by delivering timely and thoughtful information. Do you have astory to share? Words of wisdom? Pass them along to us.

Email [email protected]

IPBC makes every effort to ensure that all content is correct, however, IPBC recommends independent verification before acting on the information contained herein.

? Copyright 2011-All Rights Reserved Institute of Professional Bookkeepers of Canada (IPBC) You are encouraged toshare this newsletter with your friends and associates as long as you do not change it in any way. Institute of Professional Bookkeepers of Canada

email: [email protected] phone: 1-866-616-IPBC (4722) web: http://www.ipbc.ca

Institute of Professional Bookkeepers of Canada | Box 31014 RPO Thunderbird | Langley | British Columbia | V1M 0A9 | Canada

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