Running a business often means juggling numerous responsibilities, from ensuring smooth operations to handling customer service and staff management. With all these demands, finding time to sit down and review your financial statements can be challenging. However, staying informed about your business's financial health is crucial. Luckily, there's a solution: mobile access to live financial data.
Streamlining Financial Review
If you find yourself too busy to review financial reports on a computer, consider leveraging cloud-based accounting software like QuickBooks Online or Xero. These platforms offer mobile apps that allow you to access live financial data anytime, anywhere. By having live bookkeeping, where financials are updated daily or weekly, you can easily keep a pulse on your business's performance.
How It Works
Imagine you're waiting for your morning coffee and want to check your business's financial status. With QuickBooks Online, you can simply open the app on your phone, navigate to the profit and loss report, and instantly view the latest numbers. For instance, you can see your revenue, expenses, and net income for a specific period, like the previous month. This quick access allows you to monitor key metrics, such as payroll costs and net profit, helping you stay on top of your finances.
Key Metrics at Your Fingertips
Three critical tax numbers to monitor are your GST liability, net profit tax, and shareholder's loan balance. For example, if your business has a net profit of $64,000, you can quickly calculate an estimated corporate tax liability. Additionally, reviewing the balance sheet can help you identify any negative shareholder's loan balances, which may indicate a taxable event. Keeping an eye on these metrics ensures you're prepared for any upcoming tax obligations.
Staying Informed and Prepared
With mobile access to your financial data, you can effortlessly share insights with your management team, address any issues, and make informed decisions. You can also track trends over time, comparing metrics like payroll costs from month to month. This real-time access not only simplifies financial management but also helps you stay proactive in managing your business's financial health.
Looking Ahead
In the next installment, we'll explore how to prepare for CRA audits, ensuring you have all necessary documentation ready and can respond promptly to any government inquiries. By staying organized and informed, you can confidently navigate audits and maintain compliance with ease.
Stay tuned for more insights on optimizing your business's financial health and efficiency!
