Approach To Our Services - Financial Statement Audits and Reviews

Approach

At Bay Street Accounting and Tax Services, we appreciate the challenges of the current business environment and we are committed to providing individuals, entrepreneurs and medium sized businesses with a comprehensive range of services at a reasonable price. Our approach to our services is described, in part, as follows:

Financial Statements

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The preparation of annual Financial Statements is required under Federal and Provincial companies legislation. Unless an audit is absolutely required, it is generally not cost effective for smaller companies to have one. An alternative is a compilation with a “Notice to Reader” placed on the unaudited financial statement. Because the financial statement has not been audited or reviewed by a public accountant, it may not have the level of reliability associated with audits or review engagements, however it is still accepted by many banks and other users as being adequate for their purposes. Accountants refer to such “non assurance” engagements that simply involve the preparation of financial information as “compilations” and the result produced is frequently more cost effective for small corporations and businesses than an audit or a review. The resulting financial statement is still likely to be far superior to a financial statement produced by an uncertified bookkeeper.

We will prepare your year-end financial statements, prepare adjustments, accruals, finalize the Financial Statements and provide a Notice to Reader. (Note: We do not provide “Assurance Services” such as Financial Statement Audits and Financial Statement Reviews).

Personal and Corporate Income Tax Returns, HST Returns

We prepare both T1- Personal Income Tax Returns for individuals, professionals as well as unincorporated businesses, in addition to T2 – Corporate Tax Returns. We also prepare HST Returns. We take the time to understand your situation or business in detail, in order to be confident that we have minimized your taxes payable. We do not attempt to compete directly with many of the large discount income tax preparation services that operate out of retail store front locations, processing large volumes of tax returns.

Relief of Taxpayer Penalties Through Access to the Canada Revenue Agency’s Voluntary Disclosure Program

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Late filed tax returns and late or partial payment of taxes owing can result in a serious financial liability if the condition is allowed to persist. The Canada Revenue Agency’s Voluntary Disclosure Program (VDP) provides taxpayers the potential to realize some dispensation from late filing penalties and the potential to realize partial relief from interest charges, by correcting previous instances of “non-compliance”, including non-disclosure (such as failure to file a tax return). Bay Street Accounting and Tax Services can act as your authorized representative in dealing with CRA (for more information, click the blue text, above to the right). This program was changed on January 1, 2018, becoming somwhat more restrictive.

Business Plans, Offering Documents and Investor Presentations

Unfortunately, the vast majority of business plans and investment proposals never produce the desired result, simply because they are not properly prepared and do not adequately address the key areas. Angel Investors, Venture Capitalists, bankers and fund managers require documents prepared to a professional level.

A frequent mistake is the currently fashionable practice of using “templates”, or low cost Business Plan preparation services, that result in hastily prepared, amateurish, “cookie cutter” Business Plans and presentations. At Bay Street Accounting and Tax Services, we have reviewed hundreds of Business Plans, Offering Memorandums and corporate presentations over the years. As experienced readers, we can predict, with a high degree of accuracy, which plans will obtain funding and which ones will not. For this reason, we are in a position to assist start-up and growing companies in the financing process, by producing a plan that will yield results. If there are problems with your plan, we will advise you and help you make modifications, before you expend too much of your time and energy in an unproductive manner.

Financial Forecasts and Projections

A financial forecast, projection, pro forma financial statement is an essential tool for obtaining external financing, for internal planning, as well as for use with investor presentations. Construction of such a model is both an art as well as a science: the assumptions should reflect the aspirations of the business, but they must also be supportable. In the end, all of the projected revenue and expense items must tie together in a projected income statement, projected cash flow statement and projected balance sheet. We have been building financial forecasts, projections and pro forma financial statements for years.