Silicon Halton Meetup 79 - Chart of Accounts
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Presentation by SB Partners LLP (www.sbpartners.ca) on the importance for Tech Solopreneurs and Entrepreneurs to setup a proper Chart of Accounts. We learned: - Why understanding what a chart of accounts is – is a big deal - The right chart of accounts for technology companies - How setting up your accounting systems properly will pay off in the long run - Some of the sexy saas accounting software that’s out there for smaller tech companies - When to stop doing it by yourself and hire outside help www.siliconhalton.com twitter.com/siliconhalton
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Silicon Halton Meetup 79 - Chart of Accounts
- 1. www.siliconhalton.com linkedin/siliconhalton @siliconhalton Meetup #79: Cooler Than Cool, Your Chart of Accounts
- 2. 7:15 Welcome and Member Thanks 7:20 Announcements 7:30 Cooler Than Cool – Your COA 8:45 Mark Your Calendar 9:00 NetworkingAgenda
- 5. Keynote
- 6. Greg Clarke, BComm, CPA, CA Partner, SB Partners 905-633-6323 gclarke@sbpartners www.sbpartners.ca
- 7. CoolerThanCool YourChartOfAccounts! Greg Clarke, Partner - SB Partners
- 9. Agenda 1. WHAT is a chart of accounts + why understanding what a chart of accounts is a big deal 2. The RIGHT chart of accounts for tech companies 3. How setting up your accounting systems properly will PAYOFFin the long run 4. Some of the sexy SAASACCOUNTING SOFTWARE for smaller tech companies 5. When to STOP doing it by yourself and hire outside help
- 10. Business / Growth Plans canvas maps lean start-up maps Work Systems / Plans project plans software development plans Financial Systems / Plans go to the dark side hide from the beauty of accounting how you plan to keep the money you make
- 11. Chart Of Accounts The foundation of your financial system and plans
- 12. Without it, it’s hard to know where you’ve been and where you are going
- 13. You’ll be able to track revenues and expenses • How’s my company doing • What’s the picture I’m painting You don’t want any really unexpected surprises • By how much you spent • Where you spent • How you spent it • And what the return is Chart of Accounts will change over time • Regulatory reasons • Business Growth • Lines of Business Change
- 14. Let’sDiveIn
- 15. What’s InAChartOf Accounts ForTech Companies BASIC Technology Company - Chart Of Accounts Basic Acct # Account Name Account Category 1000 Bank Asset 1100 Accounts receivable Asset 1500 Computer Asset 1510 Software Asset 1520 Equipment Asset 1600 Accumulated Amortization - Computers Asset 1610 Accumulated Amortization - Software Asset 1620 Accumulated Amortization - Equipment Asset 2000 Accounts payable Liability 2020 HST Liability 2100 Income taxes payable Liability 2200 Shareholder loan Liability 3000 Share capital Equity 3100 Retained earnings Equity 3200 Dividends Equity 4000 Revenue Income Statement 5000 Amortization Income Statement 5010 Meals & entertainment Income Statement 5020 Promotion Income Statement 5030 Travel Income Statement 5040 Supplies Income Statement 5050 Office Income Statement 5060 Licenses Income Statement 5070 Subcontractor Income Statement 5080 Wages Income Statement 5090 Memberships Income Statement 5100 Insurance Income Statement 5110 Professional fees Income Statement 5120 Telephone Income Statement 5200 Bank charges Income Statement 8000 Income tax provision Income Statement
- 17. 5 Potential Risks IfYouDon’t Setting Up Your COA Correctly Will Pay Off. If you don’t, you will: 1. Have a hard time planning and limit your ability to predict cash flow 2. Lose track of what’s happening in the business 3. Have a harder time attracting investors / banks / funding 4. Have compliance issues with CRA to properly report your earnings, and that means 5. More expensive tax returns
- 26. See An Accountant When: Your business model is in place How you deliver products and services - the idea You’re earning revenue and need to understand regulatory requirements with CRA You’re ready to discuss whether to incorporate or not You need to understand how the tax system will work for you - income tax / hst You’re thinking about how to pay yourself / payroll 1 2 3 4 5
- 27. WhatWillYou Get? 1. review individual situation on how your going to make money 2. advise on chart of accounts for your type of company 3. explain what you need for compliance with the Canada Revenue Agency 4. discuss whether to incorporate or choose another model 5. discuss how you will pay yourself 6. recommend accounting package and / or bookkeeper 7. huge value – one hour $350
- 28. Greg Clarke, BComm, CPA, CA Partner, SB Partners 905-633-6323 gclarke@sbpartners www.sbpartners.ca
- 30. MAY 20, 2016 Solopreneur Peer2Peer Creating A Winning Proposal 9:00 am - 10:30 am Silicon Halton Day Halton Hive, Burlington
- 31. MAY 24, 2016 Women In Tech Peer2Peer Member Spotlights 7:00 pm - 10:00 pm The Ivy, Burlington
- 32. May 19 + 26, 2016 | Oakville Town Hall, Oakville Skill Workshop & Speed Pitching Event
- 33. June 14, 2016 | Funding and Financing Meetup # 80
- 34. Thursday, June 2/16 | Oakville Conference Centre, Oakville Halton Futures Summit - Learn how smart integrated technologies and solutions are transforming industrial manufacturing, healthcare, clean energy, transportation, communications and social networks. Halton Futures Awards - Celebrate the technical achievements of regional businesses at the 1st Annual Halton Innovation Awards.
- 35. June 9 + 10, 2016 | Ontario Science Center, Toronto Spark brings together Agile, HR, Organizational Development and Change Management practitioners under one roof!
- 36. Workshop 1 – Main Street Retailers Watch For More Info – Coming Soon
- 37. Open Floor
Editor's Notes
- The reality we see every day with tech startups and entrepreneurs You are smart people You know how to build Business Plans / canvas maps / lean startup maps / xxxxx You know how to build project plans / software development plans / agile development plans And then you come to accounting – and you go to the dark side – close your eyes and hope that xxx So, today – I am going to teach you
- This is where we will work from handouts – obviously people will not be able to read this slide Most understand the concept - Don’t know how to execute it well
- Most understand the concept Don’t know how to execute it well
- Advantage – CRA is less likely to come after you – anecdotal evidence of CRA’s mini projects