Tag Archives: Owner managed businesses

CPP Changes for Retired Small Business Owners – What You Need to Know

Changes to the Canada Pension Plan could affect your or your employees’ early retirement plans. The government-run Canada Pension Plan, or CPP, allows working Canadians to receive a retirement benefit after paying into a pension plan. CPP also has a disability benefit and a death and survivor benefit.

Below are a few things you need to know about new CPP changes:

You May Have to Deduct Contributions
CPP has undergone some notable changes in recent years, including new regulations for those who want to start collecting early. The most recent change took effect Jan. 1, 2012. Employers were notified that companies must deduct CPP on pensionable earnings from employees 60 to 65 even if they are collecting CPP.

How it Affects Employees 65 to 70
Employers also must deduct contributions for all employees between the ages of 65 to 70 – unless the employee decides not to contribute to the plan and has filed the election to stop paying CPP Employees cannot contribute the month after turning 70.

Under the Microscope
The Canada Pension Plan has come under scrutiny in recent years as employees and employers alike try to make sure they receive adequate retirement incomes. Employees – especially those nearing retirement age – should check with their employers to see how the changes impact them, and small business accountants should work with their employer to review how the changes could impact both the work force and the company’s finances.

For more information, click here to be redirected to the Canadian Revenue Agency.

Value of Time: Making Good Use of Your Time as a Small Business Owner

Small businesses make up the backbone of the Canadian economy. Ninety-eight percent of all businesses in Canada are considered small, and those businesses account for almost half of the country’s labour force, according to Industry Canada. To keep up with the growing demand, small business owners need to be able to make the most of their time. Below are a few tips for small business owners.

Stay focused on what’s important
Pay attention to what drives sales. If 20 percent of your product accounts for 80 percent of your sales, then focus your energy on those products or services.  Similarly, spend time on activities that require your expertise.  Outsource activities like your bookkeeping to people that can do it better for you.  At Five Star Accounting, bookkeeping is our expertise and we can take care of your accounting needs so you can concentrate on your company.

Prioritize and meet deadlines
Work on the projects and activities in order of importance, then give yourself deadlines to complete each one. This helps keep you on track rather than getting slowed down by less important, time-killing activities.

Don’t wing it
Don’t start your day without a “to-do” list. Running a small business can be overwhelming, and it’s easy to get lost in interruptions and distractions. A “to-do” list will make sure you stick to your schedule, and it will help you prioritize.

Stick to your schedule
Once you’ve come up with a prioritized schedule, it’s important that you stick to your deadlines. The same goes for your employees. Missed deadlines are time wasters, because they push everything else back.

Keep your eye on the prize
Whether you’re the CEO of a Fortune 500 company or run a mom-and-pop diner, don’t lose sight of your goals. Are you looking to expand? Or are you simply trying to increase your earnings? Revisiting your goals each month will help you tweak them as necessary – and it serves as a reminder of why you started your business.