Simply From the Corner Office

Have you ever accidentally deleted a file or overwritten one in error.  Have you ever lost a hard drive on a computer? Hopefully when this happens you can go to your backup media and retrieve the original.

Your data is one of your most important assets.  Without your files, your business cannot run, period. Unfortunately, there is not an insurance company out there that can rebuild your files if they are destroyed.

I cannot say enough about backing up your critical files.  Not doing so could cost you immensely and even ruin your business. Unlike a machine or a building, you cannot just go and get a new part or rebuild the damage.  The Graziadio Business Review has a very well researched paper titled The Cost of Lost Data that discusses the risks and the real cost of losing your data.

Our office performs regular daily backups of all databases, spreadsheets and documents. These backups are made to external portable drives and subsequently removed from site on a regular basis. From time to time, these portable drives have been known to fail which gives one's heart reason to speed up and skip a beat or two. What if the other drives have failed? What if the server goes down today?  Supposedly these kinds of double failures never happen but I have personally witnessed this many years ago - that should be rephrased as 'actually experienced it'.  Happily, other backups meant that we only lost a few days work.

Ultimately, the best backup strategy should include offsite remote storage. There are many of these services available.  Until recently I have always been concerned about the financial viability of such services as well as whether the backup servers are on Canadian soil. Not to say that any one of the providers out there are not excellent choices, I just needed to find one with which I could be comfortable.

Bell Canada (I have to declare that I own shares) is now offering a service called Data Protect that provides remote backup. Files are stored on Canadian soil, encrypted before they leave your premises and multiple versions can be kept to name a few of the options available.  The whole process from setup to using has been painless.

Most important, I am fairly surely certain that we are 'insured' that the backups will be there for the day that they are needed in the future.

Most of you reading this must perform some type of function in the realm of accounting.  Do you ever make errors?

If you have a bookkeeping practice then this post may be of particular interest to you.  Have you ever made an error? Overlooked or ommitted an important piece of information? Ever deliver a report to a client and later find that one row of numbers didn't get added into the 'sum' formula on your spreadsheet? Let's face it, we all make errors from time to time and usually it is without consequences. We quickly fix the mistake and inform the client before any harm is done.

If I am working on a complex and complicated report, I'll put it aside for a day and revisit it later with a fresh set of eyes before final completion. If I'm unsure of an item, I will run it by a colleague for their analysis.

Peace of mind, though, ultimately comes from having liability insurance and namely a policy that covers the liability of errors & omissions.  This doesn't mean that just because you have insurance, you can be any less diligent. It does however provide you with the assurance that should you make an error that causes another party financial harm, your assets and livelihood will be protected. It lets you sleep at night.

Recently I joined The Institute of Professional Bookkeepers of Canada (IPBC) and found that they have a very competitive E & O package for their members. 

If you don't have E & O insurance, I urge you to look into it, now!

Just a heads up to anyone with Simply 2012 on a domain server -

Release C has an update for the Transaction Manager that has to be installed on the server if you are using the TM.

Accolades all around are coming this week. The reason why, is that our clients' employees get their T4s this week. They think this is great because there is no waiting until the last day of February to start filing their taxes.

However, the real reason that these T4s get produced this week is mostly self serving on our part. Completing the T4s this week allows us to reconcile the T4 Summary with the payments made for the year-to-date plus the last payment for December that is due on or before January 15th.

In order to reconcile the T4 Summary, the summary needs to be generated from Simply and printed out (or at least displayed on the screen).

The next step is to calculate how much the total remittance for the year should be. Next, take the amount paid to date from the most recent Statement of Account for Current Source Deductions form (PD7A) and add any amounts that are not included in the Amount paid for the year box.  The difference will be the amount of the final remittance that should be remitted for the year.

This will save you questions at a later date from your client or employer and most importantly CRA.

You'll make some people happy too.

Over the past couple of years, I have had the opportunity from time to time to view and comment on the new payroll features that are now found in Simply 2012. It is nice to see most, if not all of the features proposed, implemented in 2012.

Here are a few of the items that could save you some time, especially if you upgrade to 2012 before completing any payroll functions for 2012.

Update Employee WSIB Rate - in one screen under the Maintenance menu, you can now update all or some the rates, by province, rate and job category (this is my number one favourite and I think Sage got it right through and through!).

Update Employee Claims - screen has a nicer feel and you can see all of the employees and their existing claims in one place.

Paycheques - the entry screen now shows the hourly rate and looks and feels like the sales and purchase journals.

Payroll Cheque Run - this screen is great to work with. We can now unselect all employees at once - a very necessary feature for businesses that use part timers that do not work every pay period (I've been wishing for this for a few years). You are also able to see all of the hours being paid to all employees on one screen - an excellent way to double check hours against the time sheets before hitting the print and post  buttons.

The payroll features in Simply 2012 really do save time and increase productivity, especially for large payrolls.

This is a partial reblog from 2009 but I thought that a timely reminder would be in order.

Most software is delivered via downloads from the internet these days.  Often these downloads want to place the installation files on your desktop. The best place to store program downloads and updates is in a folder that is easy to find and that gets backed up on a regular basis.  If you have a server, that is an even better location.

After you have established a folder for Simply 2012, you can download the program and any updates to that location. It is equally important to save a copy of the email you receive from Sage that contains the serial number and the activation code in the same folder. You can just copy and paste the contents of the email into a Word or Excel file and save it in the same forlder. 

All of these steps save lots of time (and misery) if and when your computer stops functioning at some point in the future.

Original blog posted March 02 2009 - Downloading Updates from Simply Accounting

Occasionally received in April of each year is the dreaded PIER statement from CRA.  The Pensionable and Insurable Earnings Review is generated by CRA when CPP and EI differences have been detected.  This occurs after you have submitted the T4s and T4 Summary for the previous calendar year.

Unfortunately this creates a bit of an issue especially when the employee is no longer in your employ. You cannot recover any deficiencies if they no longer work for you.  CRA also generates an amended T4 for the employee so this causes confusion on the employee's part and leaves you trying to explain the whole scenario. You are allowed to recover underdeducted amount for up to 12 months from an employee through payroll deductions. However, this tends to make you less popular for a period of time.

The best solution for this is to conduct your own PIER before the final payroll of the year is processed. If you do this, you can then make the adjustments before the T4s are generated. If you take the time now to double check these deductions, you never see a PIER.

Simply Accounting has a PIER feature that is found under Reports > Payroll > Year end Review (PIER).  This report is quite helpful although is does not always determine why the discrepancies are happening - ie - employee turned 18, received an extra paycheque, etc..

In our office, we take it a step further and do the calculations for each and every employee using an Excel spreadsheet that mimics the CRA forms found in the links below.

Links to CRA pages are as follows:  for the Calculation of CPP contributions use this link and for EI go to this link.  Please note that at this writing CRA has not updated the 2011 amounts in these links.

If you would like a live Excel spreadsheet that has all the calculations working, feel free to email me at jbcorner@jordem.com at any time and request a 'PIER' calculations worksheet.

The power went off about two hours ago, so I'm in the 'dark' as I type this out on my PlayBook. A time like this sure makes one realize how dependent on we are on energy.

So far I've powered down the computers which are all on battery backup, answered some emails and typed up a quote on this device and contemplated doing some manually calculations. Notice that I used the word contemplated - the manual calcs just feel like too much work, so forget that.

Okay then, I'll go do some filing. Nope, can't do that either because the label machine won't work!

I think that I'll go read a book..... Oops no, my Kobo isn't charged. I guess I could read a real book but that's too heavy to hold and too much effort to turn the pages.

We have become critically dependent on technology and the energy that powers it.  It's great when it works and a 'disaster' for some of us when it doesn't!

I think that I'll go buy a generator.

(PS. - the power was off for 4.25 hours)

Have you ever received year end adjustments from your accountant?  If not, you're next thing to perfect and need to read no further.

In the past week I have assisted two 'new and anxious' clients who called me, desperate that their data integrity had gone awry after making year-end adjusting entries.  No, I'm not changing the subject and talking about data integrity. I am talking about making adjusting entries using the accounts receivable and accounts payable control accounts. These are not isolated cases, our office gets several calls a year about how to handle these entries.

In both cases, my 'new' clients received adjusting entries that used the A/R and A/P accounts.  In both cases they unlinked the control accounts and made the adjustments. Then they re-linked the control accounts (in one case, they had done it two fiscal years ago and it was really bothering them).  Essentially what happens when you unlink and re-link is that the customer and/or the vendor aged detail no longer reconcile with the control account(s). 

Although this may sound elementary to many of you, it does happen enough that I wanted to talk about it.

The answer is when you receive adjusting entries from the accountant that involve the control accounts is to make the entries through the sales or purchase journals.  In other words, if you have an adjustment of $100.00 crediting accounts payable, you need to find out out which outstanding invoice(s) makes up the $100.00.  Instead of attempting to post to accounts payable, enter the vendor invoices equaling $100.00.

So the next time that you get an adjusting entry that involves a control account, find out the related invoices and post them instead.

This is a quick post to let you know about a couple of 'gotchas' that I have discovered over the past few days in Simply, as it relates to EFT Direct .

1st Gotcha - If you have upgraded to 2011 Enterprise, the EFT Direct program is no longer on the CD or in the download. 

Most of our Enterprise clients received an email from Simply that contains a link to download the EFT program. It was dated on or about Dec 15 2010.  If you are using EFT, you need the 2011 EFT installed if you have upgraded your database to Simply 2011. 

For other 2011 versions, you have to by EFT from Sage.

2nd Gotcha - using a dummy bank account # in the Direct Deposit tab of Employees record

Most clients used - 000 00000 000000000 and only recorded the actual bank account info in the EFT database. With Simply 2011, if you try to change any employee info, the new info is disallowed using this dummy account number.  Make sure the value of the digits added together in each one of the columns - Bank Number, Transit Number and Account number is greater than zero - ie - 001 00001 00001.  Now our clients are using 111 11111 111111111 as the dummy value.

Today I upgraded a 2010 Enterprise database to 2011 along with the payroll updates and EFT.

Since I seem to do about 5 or 6 of the EFT updates once a year it is easy to forget the finer points.

For those that have not installed EFT, it is fast and effortless - you do need to have an EFT agreement with your bank.

A couple of things that I have learned over the years when updating an existing installation -

1) Make a copy of the contents in the 'Working' directory. This is the directory that contains all the bank account data for your employees, customers and vendors as well as any files that have been generated for uploading to the bank. This saves a lot of grief in the event that something goes awry.

2) The EFT version must be the same the Simply database that it is reading.  After you update EFT to a newer version, make sure that you open the EFT Company file and change the Simply Accounting Version to match the database.

For some reason, I seem to forget #2 when completing an upgrade.

In the future I will check this post before beginning an EFT upgrade. 

Are you a great multi-tasker? I know that I can do many things at once but none of them well when doing them all at the same time.

Until a few months ago I would inadvertently send out one incomplete email out about 6 times per year - half written, not proof read and embarrassing to say the least.

Often working on replies to a few at the same time, with 2 or 3 Simply databases open and a half a dozen Excel spreadsheets open, it would happen.  It happens like this - a client emails requesting some info, you press Reply and then go off and open their Simply file and perhaps a spreadsheet or two; the phone rings and another client needs some info - you open their database and look up their request; then another client calls.... you get the picture. While talking on the phone you check the email you were working on (bad move) and press Send - just a reflex or something....

Now I know all the rules of avoiding this - start an email, type the email, proof the email, attach any files and THEN enter the recipient's address.

However, when replying to an email, the recipient's email automatically is inserted into the To line and that's where I run into trouble.

Here's a little trick that I discovered by accident to avoid sending out those emails before its time to do so - in the CC: line press and briefly hold down the 'z' key (or any other key);  the result is the email address 'zzzzzzzzzzzzzz' now in the CC: line  When you hit Send accidentally , the email program will give you an error message stating that an address is incorrect.

If the email is not ready to be sent, breathe a sigh of relief and go back to 'multi-tasking'. If the email is truly ready to go, just delete the 'zzz...' address and press Send again.

I know the title of this post sounds like a bit of a scam but yes you can get paid instantly!

With today's global business and remote assistance capabilities, many of us consult over the phone and often never meet our clients.  New clients from across the country telephone or email and need instant support.  So how do you get paid?  You can accept credit cards or use an online payment system which entails giving up two and a half percentage points or more. Not to mention possibly having to pay a monthly rental/service fee to a merchant credit card provider.

We used to send out an invoice and hope to get paid. I must say that most clients pay on a timely basis but from time to time we all get burned when we extend credit to unknown clients.

I have found an excellent alternative.

First of all you and your client must use online banking.  More and more people and businesses are using online banking to do business these days, so this method is becoming quite acceptable.

The payment method that I am referring to is Interac Email Money Transfers (all the major Canadian banks participate along with other institutions - here is a list). 

The client logs onto their own online banking site and clicks on 'Pay Bills' which in turn expands and displays a sub heading 'Interac Email Money Transfer'.  They follow instructions including setting a password which they need to give to you, and an email arrives in your inbox in short order.  You click on the link in the email and it takes you through a process that allows you to deposit the funds in your account in real time. The entire process is as secure as online banking can be and the client feels comfortable that they are not giving out credit card information over the telephone or internet. 

Your client has to pay $1.50 and the amount of the transfer is limited to their access card daily/weekly limits.  By the way, $1.50 is about the cost of mailing a cheque and the related bank fees.  This process works great for small value transactions.  You can also use this method to pay certain vendors that require a depoist, etc. on goods and services.

And yes, you do get paid instantly and it does not cost you dime.

One of the biggest battles that I have with clients is getting them to track mileage for personal use of a company automobile. Our clients can never say that we haven't warned them when CRA comes knocking. And, trust me, use of an automobile benefit is one item that CRA almost always looks at during an audit.

I agree that it is a pain to track mileage, add it up monthly or yearly and then figure out out business versus personal useage. I must admit I am always on the lookout for ways to make it easier.

For years, I have tracked mileage in a spreadsheet on my phone and synched it with my desktop so as to not lose any data over time.  In the spreadsheet, there are columns for the date, description of  business destination, start and stop mileage and a calculation column. At the top, is a summary and even a spot for the next oil change based on mileage. For some this is even a burden but it it is a very necessary responsibility.  Keeping mileage up to date also makes for peace of mind and minimal work at December 31st to calculate the taxable benefit. 

You can also search the internet for a mileage tracker. I have tested a few and the best one that I have seen so far is called VQ Mileage Tracker for Blackberry and Nokia smartphones.  You can completely automate your mileage tracking with this app and the GPS on your phone. You  will still have to seperate the personal and business mileage when you get the log back to your desktop.

This BDO tax bulletin is a very good resource for how and what to track as well as what type of mileage qualifies.  The CRA website now has an online Automobile Benefits calculator that is easy to use for determining the taxable benefit.

A simplified log book was announced in the 2008 Federal budget and apparently unveiled last month according to this National Post article. Reference to this new simplification is made on this CRA page about documenting the use of a vehicle.

Here is a link to the mileage spreasheet that I use - it is a demo, so please make sure that you verify the formulas and become familiar with it before using. It may or may not suit you particular tax situation.

No matter what, please make sure that you maintain a mileage log.  I don't want to have to say 'I told you so'.

As I walked out of the store I felt the vibration. It was a weird feeling thinking that I'd never experienced something this great before.....

I checked the screen and I was hooked.

The screen with its vibrant colours indicated that a couple of emails had already arrived. The first thing that blew me away was the fact the company logo in the sender's email was there intact and in full colour. I clicked on the pdf attachment and read it immediately. Wow! What connectivity! What a business tool!

By now, you may have guessed, I am talking about my new BlackBerry. I have the 9700 Bold model which has the QWERTY keyboard and optical trackpad.

A little history first - I have had a smartphone for the last five (5) plus years. Yes, back when they were draconian and operating on the old 1x cellular speeds.  I always had a Windows based smartphone mainly because it had the capability of editing Excel files as well as connecting to Simply Mobile. Responding to email in a timely fashion while out of the office was another reason that I owned a smartphone. AND it was dreadfully slow.

However no mobile that I have owned in the past compares to this new piece of technology though. It is a excellent example of engineering - it's easy and intuitive to use.  With downloaded apps, I track mileage in an Excel spreadsheet, access my bank account, pay bills, receive emails and faxes and stay in contact with my colleagues. As a newspaper junkie, I can even check out headlines and stories during a short break.

One of the best features I like is BlackBerry Messenger(BBM). It's an instant messenger for BB users only and its free worldwide. On a recent project that I was involved with, the principals used BBM to stay up to date, discuss ideas and solve problems. Faster than email and more convenient than telephone when everyone is hard pressed to coordinate schedules, it was a first-rate communication tool.  We use it in our business to relay phone messages and get quick answers on client files (and take coffee or lunch orders when heading back to the office).

It's no wonder it is called a CrackBerry. You find yourself reaching for it to make sure it's present at all times - kind of like an old gunslinger from the west.

I think I'm addicted!