Six Canadian offices Niche marketing - IT consultants 16 years experience In house IT expertise

1. Six Canadian offices • Niche marketing - IT consultants • 16 years experience • In house IT expertise • Over 3,000 clients • One of the largest • sole practitioners in • Canada

2. Agenda • Cost overview • Added value services • Corporate year end process • Corporate information required for year end checklist • Three ways for submitting year end information • Other accounting software programs • Excel Cred File • www.EZ-as-ABC.biz • Revenue accounts • GST Quick method • GST Long method • Expense accounts • Capital Assets • Question Period

3. Cost Overview • Final fee is based on time - every staff member has a billing rate dependent on his/her skill set • Costs are subject to upwards pressure • What causes cost overruns? • Incomplete information • Inaccurate information • Unclear information

4. Added Value Services • Reasonably priced Audit Insurance • Strategic planning and forecasting to minimize future taxes • Act as a coordinator for our Client’s team of financial advisors • Client evaluations to encourage ISO 9001 continual improvement of our services

5. Corporate Year End Process • 1. File Preview 2 days • 2. Preliminary Data Entry 5 days • 3. Review Meeting Prep 4 days • 4. Review Meeting 4 days • 5. Secondary Data Entry 3 days • 6. Finalizing 4 days • 7. Package Preparation 2 days • 8. Year End Package Release 2 days • TOTAL 26 days

6. Corporate Information Required for Year End Checklist • Is not an optional form • Acts as a verification document • Needs to be filled out in its entirety • Sections should be marked N/A, not left blank

7. Corporate Information Required for Year End Checklist • Invoices • Supplier invoices (receipts) • Bank Statements and Cancelled Cheques • Source Deductions Statements (CCRA) • GST Returns & Assessments (CCRA) • Notices of Assessment for Previous Year 12 Crucial Items

8. Corporate Information Required for Year End Checklist 12 Crucial Items continued… • Statements of GST & Corp. Tax Installment Payments • Brokerage Statements • Term Deposit Certificates • Family Trust Account Statements • Initial Minutes & Articles of Incorporation • Any Other Useful Information

9. Three Ways For Submitting Year End Information • Other Accounting Software Programs Amount of time required • Excel CRED file • www.Ez-as-ABC.biz (scan it & forget it) 0 Amount of knowledge required

10. Other Accounting Software Programs • Requires the most amount of bookkeeping knowledge • Requires the purchase of a software e.g QuickBooks, Quicken, Simply Accounting etc. • Must provide us with a General Ledger Listing and Transaction Detail Listing (journals) • Must use our standard Chart of Accounts for revenue and expenses

11. Excel CRED File Capturing Revenue and Expense Data (CRED) • Must have Microsoft excel • Some bookkeeping knowledge required • Excel template provided by CA4IT • Must Print out Bank Transactions register • Must Print out Directors Expense Register • Must Print out Payable and Receivable Registers • Must provide Other printouts for auto and home office • Must provide copy of completed spreadsheet (on diskette or emailed)

12. www.EZ-as-ABC.biz A unique paperless web-based solution for your bookkeeping and document management Requires no accounting or record management knowledge Requires no special software - use your browser Easy to use - from anywhere in the world, any time of the day - it works when you work! End of year cd rom with links from financial information to original documents Secure 128 bit encryption Scan It & Forget It

13. How It Works • Organize Your Documents • Simply file your receipts in the Envelopes that have been provided and we will take care of the rest Step One Scan & Forget

14. How It Works • Submit Your Documents • Send us the documents and we’ll do the scanning for you or • You or family members scan the documents at your convenience using your personal scanner and upload to your private, secure, personal website using your browser (reduced cost) Step Two Scan & Forget

15. How It Works • We Process The Digital Documents • The digital documents are catalogued • Important data from document is keyed in such as date, amount, names, reference number, GST, accounting codes, payment method etc. • Bookkeeping journals are generated from your digital library and exported into Caseware© , your accountant’s software - after running a unique Integrity Checker Step Three Scan & Forget

16. How It Works (continued) • We Process The Digital Documents • Your office library of digital documents are cross-indexed providing for quick search, retrievals and printing - anywhere - anytime. • Your accountant publishes financial statements, journals, ledgers and industry benchmarking to your web site - drill down from these reports to the image of the related source document for quick review and verification Step Three Scan & Forget

17. Revenue Accounts Revenue • 600 Contract Income earned in Canada • 601 Contract Income earned in the US • 610 GST Sundry Income • 620 Interest Income • 630 Other Income

18. GST Quick Method • Total revenue includingGST is $107,000 = ($100,000 + 7% GST) • 4% GST payable on the first $30,000 of the above = $1,200 • 5% GST payable on the balance of $77,000 = $3,850 • Total GST payable on $107,000 gross revenue = ($1,200 + $3,850) = $5,050

19. GST Long Method • Total revenue including GST is $107,000 = ($100,000 + 7% GST) • Total GST collected = $7,000 • Total GST paid on expenses = $ 1,100 • Total GST payable on $107,000 gross revenue = ($7,000 - $1,100) = $ 5,900

20. Expense Accounts Expenses • 700 Accounting Fees Expense • 710 Advertising Expense • 720 Automobile Expense • Method 1 - Actual Expense • Method 2 - Mileage Allowance Expense • 730 Bank Charges Expense • 740 Books & Periodicals Expense • 750 Business Promotion Expense • 755 Computer Lease Expense

21. Expense Accounts Expenses Continued… • 760 Computer Supplies Expense • 770 Consulting Fees Expense • 780 Amortization Expense • 790 Directors Fees Expense • 800 Education & Seminars Expense • 810 Employee Benefits Expense • 820 General Expense • 830 Insurance Expense • 840 Interest & Penalties Expense

22. Expense Accounts Expenses Continued… • 850 Office Supplies Expense • 870 Rent Expense • 880 Repairs & Maintenance Expense • 890 Telephone Expense • 860 Professional Fees Expense • 900 Travel Expense • 950 Wages & Salaries Expense • 960 Non- Deductible Lifestyle Expense

23. Capital Assets Capital Assets • 190 Automobile • 200 Computer Equipment • 220 Computer Software • 230 Office Equipment • 240 Office Furniture

24. Capital Assets Assets First Year Subsequent Years • Automobiles 15% 30% • Computer Hardware 15% 30% • Computer Software 50% 100% • Office Equipment 10% 20% • Office Furniture 10% 20% In first year, prepare a list of business assets you wish to transfer to your business i.e. library, computers, software Value at fair market value (not replacement value) We will prepare journal entry to give you credit for this contribution to the corporation!

25. Where to get more information Other training sessions Maximizing After Tax IT Consulting Income Contracting in the U.S. Government Web Sites http://www.ccra-adrc.gc.ca http://www.rev.gov.on.ca Electronic Resources http://www.ca4it.com http://www.EZ-as-ABC.biz