So you missed the tax filing deadline, now what?

April 30 has come and gone, and we accountants have survived another personal tax season in Canada.  But we’re not done yet – the deadline for self-employed individuals is June 15, and some other taxpayers may not have been concerned about meeting the April 30th deadline.

Taxpayer:  I know I’m getting a refund (or don’t owe any tax), and I haven’t filed my return yet.  Do I still need to file my tax return?

YES! Here’s why:
1) Your refund is your money…as long as you don’t file your income tax return to claim that refund, and it’s sitting with the Receiver General, you’re giving them an interest-free loan with your money.  Also, note that CRA has limitations on how far back they can issue refunds.  The CRA will only issue a refund if you file your tax return within 3 years of when it is due (i.e., by April 30, 2018 for your 2014 income tax return).  For returns with refunds owing beyond that time (up to 10 years late), you may still get your refund (or at least have it applied to taxes owing in other years) under certain circumstances and only if you apply for relief (but this is not guaranteed and up to CRA’s discretion).

2) If it turns out that you OWE taxes (either you miscalculated or CRA finds adjustments), the penalty for late-filing is 5% of the balance due, plus 1% per month that is late, plus interest.  For repeat offenders (you filed late more than 2 years in a row), the penalty can be double.  That’s a huge risk to take for not filing your return on time.

3) You could be missing out on tax-free money that the government gives certain groups of taxpayers

A) GST credits for lower-income taxpayers
B) Ontario Tax benefits (or other similar provincial tax credits) relating to sales tax and rent/property tax for lower-income taxpayers
C) Canada Child Benefits for families with children under the age of 18 (all families get a minimum amount based on the number of children they have; lower-income families get more)
D) Old Age Security Guaranteed Income Supplement for low-income seniors

Most of these programs have a July to June payment period based on your prior year income tax return.  If you file late, payments will at the very least be delayed.  This can be a huge cash flow problem for lower-income families who depend on these tax benefits to supplement their basic needs.  So filing on time, or as soon as possible after the deadline, is important.  AND if you’re self-employed, these are reasons to file sooner than later, and not to wait until the June 15th filing deadline.

And if you’re not filing your tax return to claim your refunds and other tax benefits, where else are you refusing to receive money that belongs to you?  Perhaps it’s in your business, with your clients, or in your job, or from friends and family members.

If you would like assistance in claiming your refunds and tax benefits, or don’t know where to start, feel free to contact me (Linda@visionspire.ca) for a complimentary consultation.  And if I can’t help you, chances are I’ll know someone who can.

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[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/12/IMG_0012-resize-square.jpg[/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist and Money Mindfulness Coach. With over 20years of assisting business owners with the business and tax strategies, her mission is to eliminate stress and anxiety people experience around money and taxes, by empowering them with the tools, knowledge, strategies and mindsets that will put them in the driver’s seat of their business success and financial wellness, so they can have more harmony, joy and abundance in their life. [/author_info] [/author]

Take Nothing for Granted

Last weekend I was visiting with my family in Quebec on the family farm.  As is tradition, we always have dessert after supper, and my son had asked for ice cream.  When he went to get it out of the freezer, it was a soupy separated mess…the very large, very old (over 50 years old) chest freezer, had finally died at some point that day.  Now normally, this wouldn’t be a big deal since my parents have 2 other somewhat large (but old) chest freezers and 3 fridges each with their own freezer compartments, and they would find room in those for the soon to be spoiled food.  But harvest season just ended, and the freezers were quite full.   It was interesting to watch as a number of family members scrambled to make room in other freezers, even next door in my brother’s freezer, and I started to think about how we just take it for granted that equipment is going to keep working (even when it’s old).

It was the same when my furnace died last winter.  Even though it was 25 years old (well past the lifespan of a furnace these days), and needed repair, I took it for granted that I’d get at least one more winter out of it.  Not so – I was forced to deal with the expense of a new furnace a year earlier than I had planned.  And my dishwasher that died this summer – 15 years old – I hadn’t planned for that, and we’ve resorted to doing dishes by hand.

We do it with our cars, our phones, our 

computers, and even our bodies.  We take it for granted that things are just going to keep working…we never think that something is going to give out, even when it’s old, and therefore don’t think about or plan for repairing or replacing it.  And when that time comes, we typically experience great stress over the hassle and cost of repairs/replacement.  One solution is to build a capital replacement reserve in your cash flow plans.

Larger businesses have policies, systems, and processes to track their capital equipment, its expected life, replacement costs and annual operating costs.  They also build up reserve funds (capital replacement funds) so that when something breaks or dies, they are prepared – they have a process and the funds to deal with those “unexpected” break-downs.  And they have similar processes for when key employees “break-down”, by ensuring that at least one other staff member is properly trained to do the job and can step in if and when needed, at least in the short term.

So what are you taking for granted in your home or business?  And what policies, systems, and processes (including financial) can you put in place to give you peace of mind and to deal with “break-downs” with greater ease and grace when they happen?

If you need assistance with your cash flow plans, send me an email…let’s see how I can help 🙂


[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/06/Linda-Spencer-Visionspire-cropped.jpg[/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist and Money Mindfulness Coach. Her mission is to eliminate the stress and anxiety you experience around money and taxes, by empowering you with the know-how and mindsets to improve your business success and financial wellness, so you can have more harmony, joy and abundance in your life.[/author_info] [/author]

 

What’s love got to do with it?

Money represents so much more than money…it IS a relationship…which is the way you BE with Money.

And fear of money, really is a mindset…instilled in us from an early age in our childhood, and through societal, culture and political views.

Even the education system has taught us to get good grades, go to university, get a good job…otherwise you’ll struggle – instilling fear of lack, or a lack mentality.  When really, isn’t ANYTHING possible?

So what happens when we change our mindsets?  And when I talk about mindset, I’m really talking about heart-sets (did you know – our heart contains 40,000 neurons?  That means the heart has consciousness and can affect the way our brains process information and how energy flows through the body).  It’s one thing to think something, but it’s another to have that in your heart – you not only think it, you feel it. So, when you start thinking with your heart (adopt heart-sets), from a place of love, it changes the way you be.  Ever see the video showing the love-hate-ignore experiments on plants and water?  (No? – I highly recommend looking them up)

What’s love got to do with money?

Think about this mindset:  “I love what I do, but it’s not about the money!” 

I’ve heard this from a few people, and in fact have said it myself in what feels like a previous lifetime (but really was only 10 years ago).  What happens when we say it’s not about the money?  You’re really saying you don’t care about making money, and therefore energetically, money won’t flow to you. This can result in a lifetime of struggle – burning the candle at both ends trying to make ends meet, doing what you love…when suddenly, you no longer love what you do.  BUT, when you shift your thinking to Money being like a person, you suddenly shift how you think about Money, and you’ll want to create a relationship with it in order to have it around you.

Adopting new and empowering heart-sets become a catalyst for new behaviours and taking new actions – they jolt you out of your comfort zone and cause you to take a different action that is in alignment with your heart’s desire….Adopting empowering money mindsets create confidence and authenticity with how you make financial decisions, creating greater wealth, abundance and freedom…freedom to create even more of your heart’s desire. 

What would it be like if Money was your friend, your lover, your child, your customer (whom you love dearly)?  Would you be more compassion, caring and attentive to your Money?

Want to know more about improving your money relationship?  Check out our upcoming EVENTS.

 

[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/06/Linda-Spencer-Visionspire-cropped.jpg[/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist and Money, Marketing & Soul business coach. Her mission is to eliminate stress and anxiety people experience around money and taxes, by empowering them with the tools, knowledge, strategies and mindsets that will put them in the driver seat of their business success and financial wellness.[/author_info] [/author]

Money is Evil?

What stories were you told about money when you were growing up?  What stories about money do you tell yourself and your kids now?

Go ahead, list them…I’ve heard (and told) so many:

  • Money doesn’t grow on trees.
  • Money is evil (or the root of all evil).
  • Rich people are snobs, bitches, a-holes…they don’t care about anyone but themselves.
  • Money is hard to come by…you have to work hard for money.
  • If you don’t work hard, you don’t deserve money.
  • There’s not enough money…you can’t afford to ________.
  • Rich people are spoiled.
  • So and so was born with a silver spoon in his mouth.
  • People with money are crooks/crooked – they never made an honest day’s wage.
  • You’re not smart enough to make a lot of money.
  • You can’t take it with you, so you might as well spend it and enjoy life now.
  • You have no idea where the money goes – it just seems to disappear.
  • Money is elusive…just when you’re starting to build some savings, something happens (illness, car repairs, home repairs, etc.) to drain your bank accounts.
  • You’ll never get out of debt.
  • You’ll never have enough money to do the things you want to.

(And so on)

Do you cringe or stress every time you look at a bill or your bank accounts, and start complaining about said bill or bank account?

Now, if you were Money, and I kept telling all these stories about you, would you ever want to hang out with me or help me?  Likely not.

Here’s the thing – The energy you put out there is the energy you get back.  So if you’re always complaining about Money, how hard it is to get money, how bad it is, well, guess what – you’re not making a good invitation for Money to come and stay with you.

Start paying attention to the energy and words you put around money.  Go ahead, write down all your money stories (how you feel about it, what you think about it).  Acknowledge how you’ve been treating money.  Then apologize, and start showing it some love instead…start inviting it into your reality and show it some appreciation.  Here are some things you COULD do instead of complaining about Money:

  • Be grateful for every dollar coming in AND going out (yes, be grateful for your bills too, and what they represent).
  • Dream about Money and all the positive ways it can contribute to you.
  • Imagine what Money looks like, feels like, and how it feels to have Money.
  • Start asking questions about how you can have more money, or how you can do xxx with more money.

 

The truth is, Money makes life easier, allowing you to do more and experience more of what brings you and your family joy.  Just think – the more money you have, them more good you can do in this world.

I invite you to shift your money stories – from contracting and negative to expansive and empowering.  What would your life BE like with Money as your partner?

Visit www.visionspire.ca/events for upcoming workshops and programs that will transform your money stories and help you create a healthy relationship with Money and finance.

 

How Farming Prepared Me for Entrepreneurship

I spent the first 19 years of my life on a beef farm with my loving parents and 3 younger siblings in the Eastern Townships (QC).  It was a lot of hard work (and hardship) and simply our way of life.  Never once did I think of it as a business, with plans and strategies, and committed action to get desired results…until after I myself became an entrepreneur.  Even though I had years of education and training in accounting and finance, I realize now that growing up on a farm was likely some of the best training I could have for running my own business.  Here’s why:

1 – Farming takes dedication, resiliency and hard work, and a love for that way of life…it’s not for the faint of heart.  I feel the same for entrepreneurship.

2 – Farming requires a lot of planning and strategic action to achieve desired results in the timelines afforded by the changing seasons.  Running a successful business requires knowing your markets, having clear plans and taking strategic action to get the results you know are possible.

3 – You can’t run a farm successfully on your own – as in business, you need a good team.

4 – As a farmer, you need to build great relationships with your suppliers, your customers and your team members that fully support you in achieving your success.  This same is true in business.

5 – My family really loves what they do and puts so much love into caring for the land and each of the animals on their farm.  This love and compassion was instilled in me, and as an entrepreneur, I really care for my clients.  I love serving them and seeing the joy on their faces as a result of their transformations and the results they’ve realized from working with me. 

6 – Farming is a 24/7 job (at least the kind of farming we did)…you could be up before the sun and not get to bed until the wee hours of the morning (especially if it’s birthing season or maple season).  As an entrepreneur, I eat, breathe and sleep my business.  It’s an integral part of me, and often has me up into the wee hours of the night (especially when I’m in creative mode).

7 –  As a farmer, you need to be prepared for life’s curve balls (uncooperative weather, sick animals, illness, injury, economic set-backs, influences beyond your control) – having back up plans, risk management systems, and a good support system are essential to handling those curve balls with ease and grace.  These are also essential for success in business.

8 – Growing up, we had to make do with what we had.  That meant being really resourceful, thinking outside the box and finding solutions that required little to no money.  If it meant rolling up our sleeves, getting our hands dirty (and worn), and creating something out of nothing, we did it.  I’m finding this has become a great skill in the beginning stages of my business.

9 – My dad never seemed to stress if things didn’t go so well on the farm.  Sometimes SH*t happens – it is what it is…no point stressing over it…just assess the situation, learn from it, find a better solution and move on.  I’ve had many challenges in starting and growing my business.  Thankfully, I adopted my dad’s outlook on dealing with those challenges…otherwise I likely would have given up and gone back to a full-time job long ago.

10 – In farming, you really need good tracking systems and processes – whether it’s for your cash flow or your animal inventory (I saw my dad, and now my brother, tracking the cows and money almost daily – perhaps this is where I adopted my love and propensity for numbers, and why I became an accountant).  As an entrepreneur, you really have to know your numbers (sales, marketing analytics, financials, etc.) and what they’re telling you so you can make the right decisions for you and your business.

So there you have it – 10 ways that farming prepared me for running my own business…and I never really acknowledged or appreciated them until just recently.

So what about you?  What skills did you acquire from your childhood that maybe you haven’t acknowledged or appreciated until now? I would love to hear about them…leave your comments below.

If you would like to chat about how I can help you with growing your business, CLICK HERE to book a complimentary clarity call.

What is Financial Wellness?

It’s no secret that money is the #1 factor causing stress – affecting our mental and physical wellness. It’s also no secret that it takes awareness, know-how and empowering money mindsets, along with INSPIRED action to create the stressless financial reality that you desire.

Financial wellness (and “freedom”) is a mental, emotional, and educational process that provides for an intricate balance of the mental, spiritual and physical aspects of money.  It involves having an understanding of your financial situation and taking care of it in such a way that you are prepared for financial changes…and knowing where your money comes from and where it is going.  One of the first questions I ask my clients is whether they track their money…most of them say no.  In fact less than 40% of North Americans have a good understanding of their finances, and even less (20%) actually have a plan for their financial future.  Without the awareness and planning for your desired financial reality, it’s easy to become controlled by circumstance, fall “victim” to the “poor economy”, to peer pressure, to rising consumer debt – a deterioration of financial wellness.

What does financial wellness (and “freedom”) look like to you? And what actions are you taking daily to adopt those empowering mindsets and take that INSPIRED action to have your financial freedom?

Feel free to leave comments below, or send me an email – would love to hear your views.

PS – If I could give you a simple solution that would promote and empower your financial well-being (in as quick as just a few minutes), would you say yes? Click [YES] to find out how.

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Getting Comfortable with Money

The more comfortable you get with Money, the more you empower yourself.

I hear many people say they don’t pay attention to their finances because it stresses them out (likely a huge factor behind today’s low financial literacy rates).  One of the reasons for this stress is that they don’t know what to look at or what to do.

Let me tell you a story to shift this perspective.

I have a client who, 9 months ago, had this same perception of money – it was stressful.  She never looked at her numbers, and as long as her debit card worked, she felt everything was ok.  Her husband took care of all the finances (and the stress of dealing with it).  He balanced her books for her and took care of their personal money matters for which she had no awareness or interest.

Then she heard me speak about having a relationship with Money (instead of treating it like just a thing, or a “necessary evil”), which completely shifted her perception and way of being with Money.  She started paying attention to it, understanding it, and looking for ways to bring more money in.

This client recently told me that she now looks at her numbers daily, has gone to her bank about reducing fees and asking about investments (something she had zero knowledge of 9 months ago), and is becoming her own money “guru”.

This new “relationship” with money has empowered her beyond her imagination (and beyond her husband’s imagination) – giving her more confidence in her business and in her relationships, and resulting in greater ease for her business and her family.

Money is the #1 factor causing stress in North America, but it doesn’t have to be.  When you shift your perceptions, and pay attention to your finances, ask questions and learn more about them, you WILL become empowered to take INSPIRED action to build your net worth.

What actions will you take today to empower yourself with money and finance?

 

[author] [author_image timthumb=’on’]http://54.82.103.175/wp-content/uploads/2017/06/Linda-Spencer-Visionspire-cropped.jpg[/author_image] [author_info]Linda Spencer brings 20 years of professional accounting and tax knowledge to her more recent accreditation as a Certified Money, Marketing & Soul Coach. Through her money mindset and profitability workshops, group training programs, guest speaking and 1-1 coaching, she helps heart centered business owners transform their relationship with money & finance (reducing their money stress), so they can do more of what they love with greater ease and joy. If you would like to be more empowered to create the business (and life) you imagine, with Money as your PARTNER, Linda can help. Contact her for a no-obligation 30 minute complimentary Clarity Call to learn what your next steps should be. [/author_info] [/author]

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Know Your Numbers

In my 20 year career as a professional accountant and now business coach, I have worked and talked with hundreds of entrepreneurs.  I’ve seen many grow their business exponentially, and I’ve seen some fail.  Many entrepreneurs have told me they’re struggling to make ends meet.  When I ask them if they know how much money they’ve made and spent in the last 6 months, or if they have a plan, almost all of them say no…they don’t track their numbers (many handing over all their receipts for the year to their accountant at tax time), or if they do have their bookkeeping done, they don’t look at the numbers.  Many tell me that they don’t look at their numbers because they don’t know anything about finance, dealing with finance/money stresses them out, and/or they don’t have time.  This certainly backs up the statistic that over 85% of business failures can be attributed to a lack of financial planning and organization.

If you want to have financial wellness and abundance, one of the essential keys is to know your numbers and what to do with them so you can take the appropriate action in line with your business (and life) objectives.

If you don’t track and review your numbers, how would you know how you’re doing?  How would you know if the products you’re trying to sell are making you money?  How would you know if your marketing and sales efforts are paying off in profitable returns?

What numbers could you be tracking?  Literally, hundreds.  But here are some key financial numbers that every business owner should know and understand:

  • Cash in, cash out, net cash flow – What do you bring in, spend, and how much is left each month?
  • Collection rates – How long does it take you to get paid? Do you have policies and processes in place to ensure you’re getting paid on time (or faster)?  Statistics show that any money owed to you that is more than 90 days old likely won’t be collected.
  • Cash burn rate – How fast do you burn through your cash on hand? Typically, you want this to be 3 to 6 months.  It’s a fast track to failure if you don’t have cash to meet your next payroll.
  • Revenues – Are your sales increasing? Decreasing? Are you hitting your targets?
  • Product and Client profitability – How much money is each of your products/services and clients making you…you want to focus on the profitable ones, and let go of the ones that don’t make you money.
  • Gross margin and profit margin – Compare your margins to plan and industry averages – how are you doing? Do you know how much sales you have to make for every dollar you spend in order to have the profits you’d like to have?
  • Capital spending and Return on Assets (ROA) – What are you investing in your business (and do you have a plan for this)? Are the assets you’re buying making you money?
  • Cost of client acquisition – What is it costing you to bring on a new client [=total marketing costs/# new clients]?
  • Return on investment (ROI) – Are your investments making you money, and how much? You can look at this not only from actual investments in stocks/funds/etc., but from every expense line and every effort you make. For example, you may want to know the ROI on your investment in your learning, investment in marketing and advertising efforts, or investment in people.

Whether your focus is on marketing, sales, productivity or profits, you need to track the appropriate numbers and review them on a regular basis to make sure you’re on track with your plans.  By looking at your numbers, and understanding their story, you can then identify the money/productivity leaks and opportunities on which you can take action to grow your business and your profits.

Every person has the opportunity to have financial wellness and abundance.  The difference between the 30% of the population who thrives financially, and the 30% of the population that struggles to survive, is that those who thrive have a plan, track and review their numbers, and take inspired action to grow their net worth.

Your numbers tell a story.  They tell you where you’re making money, where you’re losing money, and whether your efforts are paying off.  Do you know what story your numbers are telling you?

If you would like to empower your financial wellness and abundance, and get to know you numbers better, I can help.  Drop me a line and let’s talk.

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[author] [author_image timthumb=’on’][/author_image] [author_info]Linda Spencer, CPA, CA Certified Money, Marketing & Soul Coach [/author_info] [/author]

12 Ways to Optimize Your Cash Flows and Taxes Before the Year is Through

Most entrepreneurs aren’t thinking about their 2016 taxes this month, but they should be…there are some things you need to do before December 31 to take advantage of certain deductions and tax credits for your 2016 tax return.  And, it’s also a good time to have a boost in your cash flows.  Here are 12 tips:

Increase Your Cash Flows

  1. Want a boost in your cash flows this last month of the year?Look at where you are leaving money on the table – it could be outstanding receivables, over-delivering on your services, not following up on leads (how awesome would it be to book another client or two just before Christmas?!).
  • While you’re at it, why not review your payment policies…maybe a change is required such that you’re getting paid in advance or at the very least on the day of service (that way you don’t have to worry about chasing those receivables after the fact).
  • Now is also a good time to review your pricing strategies to make sure your charging for value.  Now would be a good time to notify your clients of price increases that will take effect in January.

 

2.  Consider accelerating purchases for your business.

As a business owner, you probably have a good idea of the things you need for your business.  If you want to get the deduction from your income this year, purchase items you need in your business on credit in December and pay for them in January when your credit card is due.  This way you’ll get the tax deduction this year but defer the cash outlay until next year.

  1. Pre-sell packages/services/goods to be delivered in the new year.

‘Tis the season for giving, so why not offer an incentive for people to pre-order goods and services and pay for them now, that they’ll receive in the new year.  Examples could be taking custom orders for your goods for future delivery, offering gift certificates for clients to give to their loved ones that they can use in the new year, offer savings/bonuses to pre-sell a program/course/workshop that will take place in the new year.

4.  If you haven’t already done so, now is a good time to look at your 2017 plan.  When you have clarity in where you’re going, and align your actions to achieve that, you’re telling the Universe that you’re open and ready to receive.  That receiving may even happen sooner than you think.  Going back to my previous point – when you have clarity of your 2017 goals/targets/plan, you can decide which offers to promote and pre-sell now.

When you’re planning for the new year, plan with the end in mind and ask these key strategy questions:

    • What is your overall vision, purpose and goal?
    • Where will you play (play where your target clients are)?  How will you become more visible and build your audience?
    • How will you hit/exceed your targets?  What will  you offer, at what price? How/when will you get paid? What are you marketing/sales strategies? How will you know you’re on track?  What are your back up plans?
    • What capabilities/resources need to be in place to support that?
    • What management systems need to be adopted and implement to support that?

 

Optimize your 2016 taxes

So now you’ve injected some extra cash into your bank before year-end, the year would not be complete without thinking about how to optimize your taxes.  Here are some tax-saving tips that you’d need to consider doing before year-end.

  1.  Maximize your CCA (tax depreciation) claims.

Purchase business equipment before year-end to accelerate the capital cost allowance (CCA) deduction by one year.  For most equipment purchases, you get 1/2 the CCA deduction in the year of purchase.  So if you purchase in Dec 2016, you get 1/2 the year’s CCA in 2016, then a full year’s worth in 2017.  If you wait until early 2017 to make the purchase, you only get 1/2 the year’s CCA in 2017, even though you’ve been using it for almost a full year.   Again, buy them on credit and pay later, allowing your to get the deduction in 2016, but defer the cash outlay to 2017.

2.  Keep cash in the family and reduce your taxes.

Pay a reasonable salary to your kids/partner for actual work they do for you (this is a form of acceptable income splitting).  You get the deduction, and the income should be picked up in their income tax return for the year, presumably at a lower tax rate than yours.  But, also beware of additional tax compliance and amounts you have to remit (such as CPP contributions and completing T4’s).

3.  Maximize your car expenses.

If you use your car for business, and you know you’re car is in need of service and repairs (perhaps new winter tires?), make those necessary car repairs before year-end to get the deduction in your 2016 income (in proportion to your business use of your car).  While you’re at it, update your mileage log to track all your business km’s.

4.  Maximize the Canada Education Savings Grant (CESG) for the year by making your RESP contributions prior to December 31.

If you have kids under the age of 18, the Canadian government give you a grant on the RESP contributions made for your kids’ post-secondary education.  The grant is 20% of the RESP contributions, to a maximum of $500 on $2500 of contributions made in the calendar year.  Now is the time to top up your RESP contributions to take advantage of the maximum available CESG for the year.  There are additional grants available for low income families and kids with disabilities.

5.  Maximize your RRSP contributions.

Assuming no carry-over room or pension adjustments, you can contribute 18% of your earned income for the previous year to your RRSP in 2016 (to a maximum of $25,370 for 2016 contributions).  Many people wait to top up their RRSP contributions until February.  However, there are a few instances where it would make more sense to do so before the end of the year.

    • If you’re nearing retirement, and make spousal RRSP contributions, consider that if you wait until Jan/Feb 2017 to make those contribution, your spouse will not be eligible to withdraw them until 2020.  Making the contribution in 2016 accelerates the eligible spousal withdrawal to 2019.
    • As a tax free savings vehicle, if you’re 18 or older, you can make after-tax contributions to a Tax Free Savings Account (TFSA).  The maximum contribution for 2016 is $5500 (like RRSP’s, the unused contribution room gets carried forward and available to you in future years).  If you’re planning to make a withdrawal from your TFSA, do it now instead of waiting until January – that way your withdrawal is added back to your contribution limit for 2017 (otherwise you have to wait until 2018 to be eligible to add it back into your TFSA).

6.  Maximize your medical tax credits.

Medical and dental expenses incurred in the year can only be claim if paid in 12 month period (claim period) that ends on or before December 31.  So, you’ll want to pay those outstanding medical expenses/prescription refills/dental bills before year-end to maximize your claim for 2016.

7.  Optimize your charitable donations tax credits.

Total charitable donations in excess of $200 made in the year can give a higher tax credit (approximately 40% in Ontario) than your marginal income tax rate, giving  you a net benefit on your tax return.  But, the donations have to be made in on or before December 31 in order to be claimed on your 2016 tax return. So if you’re planning on giving, December is a great month to give.

8.  If you have unregistered investments which are giving you taxable gains in the year, consider selling stocks with accrued losses to offset realized gains for the year to reduce your taxable income.  Also, consider paying investment related expenses before year-end in order to get the deduction for this year against your investment income.

 

So there you have it – 12 ways to increase your cash flow and optimize your taxes for 2016.  Of course, these are general statements – each person’s situation is different and must be considered carefully before making decisions that will affect your taxes and cash flow, taking in to account the specifics of your situation.  I would suggest you speak to your accountant/tax advisor/investment advisor to be sure you’re making the best choices for your unique situation.  I’m happy to assist as well – contact me and request your complimentary clarity session to see how I may help.

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workshop group photo

What Happens at a Money Story WorkShop with Linda Spencer?

You might be thinking, a money workshop with a tax accountant?  Really?  Accountants are boring!

Well, if you do think so, you’ve never been to one of MY workshops.  I’ve been presenting workshops and training sessions for years, and I’ve never been called boring.  What you will experience is this:

  • A warm welcome on arrival (and a hug if you’re clearly open to receiving one :))
  • A lot of light energy in the room and from me
  • Connection, lots of smiling and laughs
  • Insight – I WILL change how you think about money (and tax accountants)
  • New knowledge and tools – The best way I can help people end their struggle and stress with money is to pass on the tried and true tools that I’ve learned and have used

I’m not your typical tax accountant…I don’t talk like one, and certainly don’t dress like one….One of my former accounting partners said to me a while back at an alumni event, “You were never one to be kept in the box, were you”.  No, I wasn’t…who wants to be put in a box!

You’ll see that I smile a lot and laugh often. I take a very light approach to life and living (I wasn’t always this way – it took some major cosmic events to get me here).  You’ll see that I love art – I wear my art and the amazing wearable art pieces of my favorite local designers (I may even wear one of those pieces at the workshop).  I have 9 tattoos (and no, I don’t ride a motorcycle), mostly designed by me.  I make jewelry, am a published author and write inspirational poetry.   Every article I write, workshop or program I create, social media post, etc. IS art.  So, no, I’m definitely NOT your typical tax accountant.

I DO believe that we are all connected and that we’ve been given some pretty amazing abilities to use in this lifetime to create the experience of Heaven on Earth – I use (and further awaken) my intuitive gifts daily, and you’ll see this in my workshops.

So specifically, here’s how the day will flow  on September 21 at the Re-Set Your Money Story Workshop at Rattlesnake Point Golf Club (Milton, ON):

9:30-10:00am    Welcome; Participant check-in (with coffee & muffins)

10:00-10:15      Introduction & Workshop Ice-Breaker (with LeeLee Fowler of Rise Media & Design – personal friend & marketing coach, and online community engagement strategist)

10:15-11:15      Crack Your Money code with Your Personal Money Archetypes (What are money archetypes, What are YOUR money archetypes (assessment), why are they important) – there’s a little bio break in here.

11:15-12:15     Being Money Visualization & Exercise (I will walk you a visualization where you will BECOME money – this will give you a TON of insight on how you do money and your money values!)

12:15 – 12:45    Light lunch provided

12:45-1:45       Money Boundary Breakthroughs (we’ll work on one or two specific money block areas that YOU would like to break through, and you leave the workshop with committed action steps to move you forward in your life/business)

1:45:2:00       Wrap-up, Thank You’s, Questions, end the workshop.

 

Sounds fun and light to me (and who doesn’t want more fun and lightness with money instead of stress and anxiety)….how ’bout you?

COME JOIN ME on September 21, have some fun with MONEY and FINANCE, and press re-set on some of those money stories that are holding you back from being at ease with money.

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