04. Client Engagement & Best Practices

Client Engagement and Best Practices

Our goal is to provide you with useful, 5 Star Books.

This is an outline of how you can ensure we have accurate information and documentation to make this happen.

We can only maintain great books with your help and engaged participation.

We strive to complete your prior period by the 10th day of the next month. This gives you a few days to review your reports for accuracy, so that we can supply your GST/HST filing information by the end of the next month. To accomplish this CV Bookkeeping needs all your documentation & receipts and requested information uploaded to Hubdoc by the 5th day of the month, at the latest.

We will supply relevant reports: Profit & Loss, Balance Sheet, Statement of Cashflow, Accounts Payable and Accounts Receivable. Within 10 days you need to review them and email back to us that you are in agreement with them and confirmed that we (you or us) are ready to file GST/HST, OR contact us to discuss them.

We will also supply a report of transactions we do not recognize what they are for, did not clear the bank or credit card OR feel will not meet the CRA standards for business expenses. You need to review that report and have the transactions identified for us, again within 10 days of receiving the report. You can mark up the report and email it back to us.

CV Bookkeeping will supply your GST/HST filing information within 10 days of receiving your reports’ approval.

If you file GST/HST please do so by the 25th of the month following the past filing period and email us that the confirmation and payment receipt have been Hubdoc’d. If you are unable to pay your GST/HST you still must file to avoid penalties in addition to the interest you will be assessed.

If we file on your behalf, we will do so by the 25th and will send you a confirmation.

Bookkeeping Best Practices

1: Meals and Entertainment & gift cards are only meals & entertainment for the purpose of conducting, maintaining or obtaining business.

2: Travel expenses, same deal.

  • They are not for grabbing yourself lunch or a coffee because you are on business hours, or for “writing off” a vacation.
  • You need solid documentation and we highly recommend not abusing these expenses.
  • The claim value of M&E is 50%
    • You don’t get to claim GST/HST on a gift card.
    • If you give a client a gift card to a restaurant or a pair of tickets to a hockey game, those gifts are considered to be meals and entertainment expenses; as a result, you may write off half of their value.
    • If you purchase a gift card for a client mark the receipt that you Hubdoc of who it is for.
  • For your own business use, you can either go with the convenience of using a card (no GST/HST benefit) or you can make each purchase separately and put the receipt into Hubdoc. No matter what you do you must have documentation of who/what/why you met marked on the Hubdoc’d receipts.
  • You must still put the marked up GC redemption receipts into HD but if there are no matches in the bank feed we will not expense them individually.
  • You cannot double dip (make a purchase with a gift card – for you or your client) and then deduct the expense.

3: Track biz expenses paid personally

  • Hubdoc/Dext them, NOTE as paid personally.

Again, this is not a great habit, but we realize it happens sometimes.

4: Petty cash – Must be considered a bank account, a rarely used one.

  • Money withdrawn to be used as petty cash, Hubdoc bank withdrawal receipts.
  • Expenses from petty cash, Hubdoc all receipts and mark as petty cash.
  • Email us the balance in petty cash at the end of the month and we will reconcile.

5: Cash drawer payouts (Retail clients)

  • Any expenses paid out from the cash drawer, Hubdoc & mark to cash drawer payouts.
  • You will need a log of these as well to balance the till to the POS report.

Petty cash float is much preferable to CDP/Os.

6: Sales & payments

  • Invoicing can be done in QBO or as a sales receipt to match POS transactions.
  • Invoices/SRs are BCC’d into Hubdoc directly from QBO.
  • Payments are received into “Undeposited Funds” (or “Sales Clearing” if we have set that up), not into the bank account. Deposits are created by me using your Hubdoc’d picture of bank deposit receipts.
  • Customer payment cheques go into Hubdoc matched to the customer (aka vendor) name.

We highly recommend QBO Merchant for receiving client credit card payments for invoices created in QBO. Plooto for PADS and direct deposits.

7: Bills and payments

  • No matter how you complete your vendor payments please make sure they are marked as completed in QBO.

We recommend Plooto for vendor payments.

8: QBO bank feed

  • “Update” it weekly, but please don’t do any matching or adding it in. Leave that to us.

It can be our best friend or worst bookkeeping foe if not managed correctly.

9: Due to shareholders & owners – We need to make sure that this account is neither too high or too low.

Keep the transfers to & from to a minimum.

We appreciate how busy you are just keeping up with running your business, but we can make it more efficient and profitable if we have your full engagement to maintain useful, 5-star books.