Antivirus Preparedness: What To Look For In An Antivirus Solution

Finding a good antivirus solution is kind of like searching for insurance coverage. We know we need it, but few of us really understand how it works. Here is a simple discussion outlining what antivirus software is, the threats out there and what to look for in selecting a security solution.

What Is Antivirus Software?

Antivirus software are programs that are specifically designed to deal with various forms of malicious software (often referred to as malware) that can infect your computer and cause data corruption, breach of privacy or many other forms of malintent. Typically, antivirus software is used to both prevent and remove the offending malware. Given that there are constantly new kinds of malware being released, a key aspect of antivirus software is the frequency and completeness with which it is updated.

The term antivirus has become synonymous with protection against a variety of threats, and not just viruses as the name suggests. It is worth understanding, at least at a high level, what the various forms of these threats are.

WHAT THREATS SHOULD YOU BE CONCERNED ABOUT?

There are several different threats present in our modern environment. These are normally categorized by the method by which they are transmitted and/or by the malicious activity of the offending code and are collectively called “malware”. A few of the most prominent types of threats are listed below. This is by no means a complete list:

  • Viruses – usually an executable file that has the capability of replicating itself, causing several different malicious intents. Executing the infected file activates or triggers the virus to act.
  • Worms – similar to viruses in that they can replicate themselves, however, they differ in that they do not require the execution of a file to trigger their activity and are transmitted by taking advantage of gaps in existing security protocols.
  • Trojan horses – a type of malicious software or code that – as you can probably guess by the name – masquerades as legitimate software, and fools users into downloading it. Once downloaded and activated, a Trojan horse typically will open pathways for other malicious software to enter your PC.
  • Spyware – malicious programs that, once they have found their way onto your computer, collect various pieces of data about you, your transactions and/or any data that resides on your PC. Once this personal data has been collected, the spyware will transmit it back somewhere to be collected by hackers, who could potentially steal your identity.
  • Ransomware – probably the scariest of all the threats listed. In this case, the malicious software seeks out your important files – such as photos, documents, and videos – and encrypts them. Once these are all locked up, large sums of money are requested by the hackers to release your own files back to you.

Selecting An Antivrius Software

Here are some important things to consider when evaluating an antivirus solution:

Comprehensive coverage – With the many different threats that are out there, it is vital that you are looking for more than just antivirus coverage, but also for other forms of defence. Things like a firewall, internet browsing protection and even identity protection are key elements to have.

Ease of use – No tool is worth anything if it won’t be used. Complicated pieces of software may provide a little better protection, but if it is not easy to understand, frustration will result. Look for easy-to-use screens, good documentation and options around how the product is configured.

Performance impact – This is probably one of the biggest complaints about robust security solutions. They can use a fair amount of your PC’s resources to run the checks, scans and updates necessary to keep you protected. If you find that you see consistent slowness in your PC, regardless of the product used, it may be time to upgrade.

Reliability – Reliable security software products have a few common elements. First, they are frequently updated, meaning that the provider is constantly adapting to new threats. Second, they have tools to automate the scanning process, and are highly configurable; so you can customize when they are run, and what files are investigated. They will also have a high malware detection rate (look for a number higher than 95%). The high detection rate indicates that few viruses are missed, and conversely that most are caught. Lastly, they should guard against being unintentionally uninstalled, as some malware has been known to uninstall the antivirus software that is present. This is easily prevented by adding required confirmations to the uninstall process.

FREE VERSUS PAID

This is a common debate. There are some good low- or no-cost antivirus products available, however, most research does point to the paid product as having a better long-term rate of malware detection. The paid software is updated more frequently, is more robust in terms of functionality and comes with better support. Free solutions, while less feature-rich, may provide less interruption to your PC – however, remember that, at the end of the day, those interruptions are saving you from harm.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Online Transactions: know What’s Happening To Your Data

Online purchasing transaction security is not absolute. There are not really “safe” and “unsafe” options anymore, meaning only alternatives remain that have varying degrees of security. However, understanding how your data is stored and used is an important first step.

WHAT ARE THE RISKS OF PURCHASING ONLINE?

The risks of conducting transactions online are real and require constant vigilance. Online transactions are open to “normal” procurement risks, but also have a unique set of other hazards. Beyond being exposed to such things as fake websites, inflated user reviews, or the possibility of never actually receiving what was bought, purchasers can be exposed to much more sinister dangers. Credit card fraud and identity theft are real possibilities. It is not all doom and gloom though. The key is understanding these risks and what is being done to protect you and your personal data.

WHAT INFORMATION CAN ONLINE RETAILERS STORE?

The storing of personal data is controlled more by the industry than by federal or provincial laws. The Payment Card Industry Data Security Standard (PCI DSS) was implemented by the major credit card companies as a means of ensuring compliance amongst the retailers, online or otherwise. Deviation from compliance is met with stiff fines. Per PCI DSS direction, brick and mortar stores are required to keep customer data only until they have been successfully authenticated. Online retailers face similar restrictions. However, when it comes to saving data for repeat transactions, customer data can be saved if it is properly encrypted and guarded. Due to the complex nature of storing and managing customer data in this manner, this function is often off-loaded to third-party providers.

The actual data that is stored by online retailers, per the PCI DSS, is the customer’s:

  • name
  • account details
  • credit card number (a.k.a. Primary Account Number or PAN)
  • the expiration date

Not to be stored are the customer’s:

  • PIN number
  • the security code (CVV).

Further, access to the stored data is to be restricted, and the full PAN must be concealed. Policies must also be in place to destroy the customer’s data once it is no longer required.

WHERE IS PERSONAL INFORMATION STORED?

To understand how your online personal data is stored, it is important to understand that there are two different areas in which your data is stored. First, many people store personal details within their internet browsers (Google Chrome, Firefox etc.). This allows for increased convenience – you don’t have to enter addresses, credit card numbers and other details each time you want to shop online.

Websites can store these details in the form of cookies, or as part of the autofill functionality. Cookies are stored on your computer and accessed by the website when you navigate there, and can store account numbers, even credit card numbers. Recently, browsers have significantly expanded their use of autofill functionality. A large amount of personal data is stored within the browser setting files, and can be accessed to speed up the process for people filling out online forms.

Secondly, retail partners themselves maintain personal data in the form of customer accounts, complete with address, credit card, buying patterns and many other sensitive details. We have all signed up for customer accounts to take advantage of promotions, newsletters, points, or just to speed the checkout process. Online transactions are usually brokered by a Payment Service Provider (PSP). These PSPs tokenize the consumer’s payment details and are usually certified by the relevant agencies. The certification details are often available on the seller’s website. Tokenization means that the data is encrypted as randomized characters and transmitted as such. Interception of this data is meaningless, as the credit card numbers, addresses and other details have been scrambled.

HOW DO YOU SECURE YOUR INFORMATION?

If we think about the two different places where customer data is stored, it makes sense that we will have two different approaches to securing our personal data.

First, make a habit of reviewing and deleting the cookies saved on your computer, especially if other people use your computer. To stop new cookies from being created with your data, simply use the “Guest” option on websites as much as possible. This is usually available on most websites and refers to the option of entering only the personal data needed to conduct the immediate transaction. Much less data is stored for future recovery, or misuse. If you choose to save some of your data, use the autofill functions. This not only speeds up data entry later, but also stores it more securely than with cookies.

Finally, in terms of data stored by online retailers, staying informed and proactive on what data you have out there is important. Take a minute to read the retailer’s security policy and understand their policies in terms of customer data retention, and if they use professional third-party partners to guard your data. Consider whether you really need to create an account with the retailer to speed future transactions. Maybe you will prefer to manage this data yourself.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Building A Learning Ecosystem For Small Organizations

Ecosystems for employee development don’t require fancy technology or expensive custom development. What you need is a thoughtful plan and a culture of collaboration.

WHAT IS A LEARNING ECOSYSTEM?

Simply put, a learning ecosystem is an environment in your business that allows your employees, and possibly your customers, to learn and collaborate in the development of knowledge and capability. In large organizations, this usually involves learning management systems, classroom training or eLearning, and other talent development systems.

But what if you are a small organization with a small but committed group of people and less capability to embrace large, expensive systems or measures? Not to worry! You can still develop a culture of learning and collaboration. There are some key factors to deciding what and how to implement a system, but it doesn’t have to be expensive or complicated.

START WITH ‘WHY’

What value are you trying to create with your learning culture? Who is your primary learner? You may immediately say, “the employees,” but consider their motivations for learning. Are they trying to do their jobs better? Learn about new products or innovations? Change processes or approaches to problems? Manage and motivate? All of these are different contributors and reasons for learning. You may want to create a “persona” for your different categories of learners. A persona is a characterization of your employee and what they see, think, and encounter on a regular basis – both the challenges and the opportunities. Starting with why they want to learn will help you to curate materials or suggest places for them to go to begin their learning journeys.

The second why, of course, is the benefit to your business. Providing an opportunity to build a culture of learning and collaboration will help to foster growth and better understanding of your market and keep your people engaged longer. Think about what you want to accomplish from the perspective of product knowledge, sales capability, safety, leadership or other important elements you want to strengthen within your business.

Once you’ve got an idea of who you are building for, it’s time to determine what you are going to curate, build, acquire, and collaborate on to get the best opportunities for your people. Learning happens when people have questions or curiosity (or both). Most adult learners need to build on their own experiences by tearing down a little of what they pre-conceived about the subject or problem and opening a space to consider alternatives or new information.

FIND A PLACE TO CURATE

So, building a learning ecosystem starts with having a place where your employees can share curiosity, lessons, advice and knowledge. This might be a regular meeting, a spot (electronic or physical, depending on the type of business you have) where they can post valuable information and collaborate, and making these sharing opportunities a regular part of your management coaching and reporting sessions. It can be as simple as creating a space in regular update meetings and assigning a rotation for people to show their work: what they’ve learned, or some insight into an existing product, customer or process. You can curate this in a SharePoint site, a dropbox, or a collaboration site. Include links to relevant and related ideas.

BUT WHAT TO INCLUDE …?

There are plenty of free resources likely available to you within your industry: product updates, manufacturing news, operational effectiveness blogs. There are also white papers and likely research if you are in a professional or technical business. Place these in your ecosystem with links to the original site so that people can explore further if they like. You may even wish to bring in someone you work with – like your accountant, HR contractor, or product sales specialist – to conduct a lunch-and-learn or presentation to your team on a topic relevant to your business. Most professionals are happy to come and speak on their specialized knowledge. Just make sure you focus on what the employees will find useful and what helps them solve problems.

Additionally, you might want to look outside of your industry. Even if you aren’t in their field, many professional associations have free or reasonably priced books, updates, and thought leadership that could apply to your company. For example, CPA Canada has an extensive collection of management and leadership resources that span much farther than just the accounting profession.

You may want to include publicly available learning activities and resources as well. For example, if you live in Toronto or in one of the larger metropolitan areas in Ontario, you can get a learning service from lynda.com for free as long as you have a library card! That’s right! Your local library is a great source for learning. Lynda (now owned by LinkedIn) is a fantastic source of video-based learning for many office applications, project management, some finance and leadership applications and even sales and business planning fundamentals. If you aren’t in a place that has this in the library system, you can access lynda.com through LinkedIn, or straight from the Lynda site, for a reasonable price.

If you want a more organized learning experience, you can try MOOCs (massive open online courses) through a site like Coursera or EdX. These are open courses with timings and facilitators to help guide coursework. A huge selection of courses can be found in these places, usually presented by major universities or well-known experts in the field. Quite a good list of these places and courses is the MOOC List (www.mooc-list.com), which can help you find the right courses for your employees or yourself.

The key to an ecosystem is that it is a system. You should think about your employees, your organizational goals, and your cultural aspirations for your organization. Pair this with a place for sharing and collaborating on development and problem-solving. Finally, don’t forget to go outside of your own profession or core industry to gather and curate learning materials that will help you solve problems or challenges from a different perspective.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Privacy And Online Behavioural Advertising

Online behavioural advertising (OBA) is becoming an increasingly popular form of advertising. If your business engages in OBA, it is important to understand the privacy risks associated with this practice.

If you have ever surfed the internet to look up a particular topic such as “Caribbean vacations” or “laptops” only to find that this same topic reappears in advertisements on other websites, then you likely have been the target of OBA.

While there are many benefits to OBA and online advertising generally, such as allowing businesses to compete with international and online companies, it carries with it certain privacy risks that businesses should be mindful of when engaging in this type of advertising.

WHAT IS ONLINE BEHAVIOURAL ADVERTISING?

The Office of the Privacy Commissioner of Canada (OPC) defines OBA as “tracking consumers’ online activities, across sites and overtime in order to deliver advertisements targeted to their inferred interests.”[1]

As people use the internet, they leave behind a rich trail of personal information. Some of this is deliberate, such as the posting of photos and comments. However, other times it is not. Through the use of certain technologies, businesses can keep track of your web browsing activity such as search terms used, web pages visited, advertisements viewed, articles read, purchases made and even your location. Businesses are tapping into this abundant source of information and using sophisticated data analytics to build personal profiles of individuals in order to deliver specific advertising to them that is tailored to their interests.

PRIVACY ISSUES

In Canada, the Personal Information Protection and Electronic Documents Act, SC 2000, c 5 [(PIPEDA) or equivalent privacy legislation in certain provinces] governs the collection, use or disclosure of personal information.

Personal information is defined as “information about an identifiable individual” [s. 2(1)]. The OPC has stated that it will generally consider information collected for the purpose of OBA to constitute personal information.[2]

Pursuant to privacy legislation, an individual’s consent is required for the collection, use or disclosure of personal information. Privacy legislation does recognize that the form of consent can vary. For example, express (opt-in) consent is typically appropriate for sensitive information and implied (opt-out) consent for less sensitive information. The OPC has stated that implied consent may be a reasonable form of consent for OBA, provided that certain conditions are met including, but not limited to:

  • making the individual aware of the practice in a clear and understandable manner before collection occurs; and
  • providing them with the ability to easily opt out of the practice with immediate and persistent effect.[3]

However, the OPC has cautioned that its 2011 OBA Guidance does not render opt-out consent the default for all OBA and that careful consideration of all the circumstances must be taken into account. On April 7, 2015, the OPC published its findings that a mobility company’s Relevant Advertising Program (RAP), which consisted of using customers’ network usage and account / demographic information to serve targeted advertising, violated PIPEDA.

While the RAP providers did not have access to information that identified particular customers, and while the company gave customers the option to opt out of the RAP, the OPC nevertheless found that “the sheer breadth of information being used or contemplated for the RAP… renders such information more sensitive when compiled” and therefore express opt-in consent was appropriate for the use of such sensitive information.

In addition to the sensitivity of the information, the OPC also considered the reasonable expectations of the company’s customers. It found that the company used its customers’ information for the purpose of delivering its primary paid services and therefore its customers would reasonably expect it to obtain express opt-in consent for the use of their information for the new secondary purpose of OBA.

As a result of the OPC’s findings, class action lawsuits were launched in Ontario and Quebec against the mobility company and its affiliate claiming $750 million in damages for, among other things, breach of privacy (the tort of intrusion upon seclusion) arising from the unauthorized use of consumers’ personal information for the RAP.

BUSINESS TAKEAWAYS

The following four strategies will help businesses comply with their obligations under privacy law when engaging in OBA.

Obtain appropriate consent (express or implied). Given the OPC’s findings against the mobility company, businesses using OBA should consider whether seemingly innocent, non-identifying pieces of information they are collecting could be considered sensitive information when compiled together. If so, this would require express consent.

Provide clear information regarding OBA practices. Privacy legislation requires that businesses obtain meaningful consent. Accordingly, businesses should provide users with clear information regarding their OBA practices. This should include what information is collected for OBA, how it is collected and what it is used for. This information should be easily accessible – such as by way of advertising icons – rather than buried in a website’s extensive privacy policy. 

Provide user-friendly opt-out mechanisms. Businesses using OBA should provide users with a user-friendly ability to opt-out of the OBA practice. Again, this could be in the form of advertising icons placed directly on the advertisement which, if clicked, provide a choice to opt-out.

Safeguard information. Once information is collected, businesses should have in place adequate physical, organizational and technical measures for safeguarding the information that is appropriate to its level of sensitivity.

[1]       Guidelines on Privacy and Online Behavioural Advertising published December 2011 (2011 OBA Guidelines).

[2]       2011 OBA Guidelines and the OPC’s Policy Position on Online Behavioural Advertising published December 2015 (2015 Policy Position).

[3]       2011 OBA Guidelines and 2015 Policy Position.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

The Path To Automation

Automating an owner-managed business entails more than purchasing a new piece of equipment. The most successful transition requires a careful analysis of existing production process, an understanding of where and when change is required, staged rather than wholesale transition, targeting repetitive employee tasks that can be automated, integration of production changes with business systems, involvement of employees and outside experts and owner metamorphosis from micromanager to business manager.

Ready To Take The Path To Automation?

Small businesses need to increase their operational efficiencies if they are to compete with goods imported from countries with lower labour and manufacturing costs. The road to competitive manufacturing may just rest with those who are automating their existing businesses.

Automating any business is not as simple as buying the latest widget-maker; rather, it’s a process that will guarantee a return on that money spent on automating and provide those efficiencies throughout the process rather than just in one area.

ANALYZE YOUR CURRENT PROCESS

As an owner-manager, you should implement a time and motion study to determine areas that are needed to improve work methods. The process review should examine each stage of the manual production process and highlight those areas and processes that are burdened with high labour and resource use.

It is best to document your process utilizing flow charts and written descriptions, as this will allow for management, workers and outside suppliers to evaluate how to improve on it. Consider among other items:

  • the stages of production
  • number of times a product is moved or inserted
  • time each stage of your process takes

You’ll also need to build in time in your review for interaction with other departments, inventory retrieval and discussions with outside suppliers – all of which will help you gather more information as you analyze your processes.

CHANGE GRADUALLY

When studies arrive at recommendations, there is often a rush to implement the entire process simultaneously. Taking on implementation in small, planned steps is a more favourable approach to avoid larger capital expenditure, employee trepidation, or longer training, meaning a break in cycles and thus the possibility of missing customer expectations.

Upgrading to automated equipment in an area currently saddled with excessive manual requirements provides a focal point for employees, to help them see advantages and gain insight about additional changes that can be incorporated into your vision.

INTEGRATE PRODUCTION WITH BUSINESS REQUIREMENTS

You can augment the production efficiencies implemented on the floor by looking at their online tools to create efficiencies for equipment software updates, ordering requirements, production costing and numbers to meet sales. Combining physical production with management and financing requirements allows for economies of scale and a better bottom line.

ELIMINATE REPETITIVENESS

The ability to relieve workers of repetitive tasks creates a positive environment for both managers and employees. Machines can carry out repetitive tasks without risking the issues that surface when people do them.

Consider medical conditions (such as carpal tunnel syndrome), poor-quality production, tired workers who can’t work to 100% capacity and are injured when concentration decreases. All these areas affect production costs and your bottom line.

INVOLVE EMPLOYEES

While managers may see automation as a positive for the business, employees may see it as one step closer to the exit door and unemployment. You may be able to assuage employees’ concerns with the likelihood of less overtime, better product production or enhanced customer service, but it is still up to you to determine how these changes will affect your employees.

To reduce attrition through modernization, management should – in conjunction with the path to automation – establish a plan for increasing market share, diversifying products or eliminating products or services that are suffering a loss. In the final analysis, if it is not possible to keep all employees, you must lay out a plan to reduce the wage burden.

HIRE EXPERTS

In all walks of life, we implement ideas without knowing how they will work. When they malfunction, we call an expert.

The same process should apply when automating and integrating support systems. Call in the experts to set up the systems, train your employees and work with them until they are sufficiently accomplished
to work on their own.

Naturally, you keep the experts on-call once the system is up and running, to ensure not only that they can help coach you along but also that any available updates are installed promptly.

WORK WITH YOUR TEAM

Transitions take time. Be understanding of employees adapting to new processes, be patient with experts that can’t meet deadlines or if a supplier may not understand your needs while seizing the opportunity to provide information to customers about the positive changes that are on the horizon. Use this opportunity to determine if changes resulting from the upgrade may affect their operation and how you can alleviate their concerns.

ADJUST YOUR MANAGEMENT STYLE

Automating the manufacturing process and its support systems should encourage managers to micromanage processes less than before. Firstly, employees have been trained on the new systems; secondly, experts are available to handle glitches within the process.

When automation reduces managers’ need to be as directly involved, it should grant them the ability to work towards building the business and strengthening their relationships with new or potential customers through visits to existing clients or improved networking.

Further, less need to micromanage allows more time to review the interrelationship between productivity and profitability by product line and to gain insight into how to further improve corporate performance.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Bartering, Taxation, And The Internet

The normal procedure for business transactions follows the tried-and-true method of selling a product or service and recording the income. The income earned is taxable as earned income. Rather than use the traditional approach, many individuals and businesses may decide to barter their products or services.

Did you know that good business practice would suggest that you treat all barter and internet transactions as you would normal business transactions?

If you ever face a CRA audit, it will help spare your corporation, proprietorship or partnership the inconvenience of a long, laborious tax audit and potential penalties and interest – or even being convicted for tax evasion.

Bartering occurs when individuals conduct a transaction for goods or services without using a recognized medium of exchange such as money. Undoubtedly, most sellers who involve themselves in barter transactions are unaware that they are required to report the value of the transaction. And, there may be some who use bartering to circumvent corporate or individual income tax and GST/PST.

When bartering transactions occur in the normal course of business, there are effectively two transactions that must be considered:

  • The first transaction is the value of the service or product that is provided to the customer.
    • For example: if your business sells bricks, the value of those bricks should be included in the seller’s business income. Further, the HST/GST and PST (if applicable) must be added to the value assigned to those bricks, then it should be reported and submitted.

Note that this assumes that the individual providing the product or service has already reached or surpassed the small supplier threshold of $30,000 with sufficient “conditions.” You can review these requirements on the CRA website.

  • The second transaction to record is the assigned cost to the goods or services received in exchange for the product you have provided.
    • Assuming that the person or business with whom you are bartering is an HST/GST registrant, it may be possible to record and claim the Input Tax Credit (ITC). If that provider does not provide their GST number, you will have to record the assigned cost as an expense and cannot claim the ITC.

There may be situations when the barter transaction may be considered the sale of capital property. In this case, the transaction may give rise to a capital gain. Your CPA will be able to provide guidance on these transactions.

INTERNET SALES

Bartering has been around since before the advent of currency, but the ability to barter has been enhanced and overshadowed with the advent of the internet, providing access to millions of opportunities to not only barter but also to sell goods or services.

For those who have used the internet to conduct what may be construed as business transactions – whether innocently or intentionally – the CRA believes that there are enough transactions not being reported that are negatively affecting its treasury.

Consider that the CRA court-ordered eBay Canada to release the following account information and sales data of Canadian residents who conducted transactions on its online selling site:

  • sales of more than $20,000 and at least 24 sales transactions in any of the calendar years 2006, 2007 or 2008, (irrespective of membership in eBay’s PowerSeller program), or
  • sales of more than $100,000 in any of the calendar years 2006, 2007 or 2008, regardless of the number of sales transactions..

Given this court order, any Canadian-resident eBay seller who meets these sales thresholds will have the following information released to CRA: full name, user ID, mailing address, billing address, telephone number, fax number, email address, and the selling prices (high bids) of the items

If your transactions meet the above criteria, a wise business decision would include contacting your local CPA and determining the need for voluntary disclosure to prevent penalties and interest, should the CRA carry out an audit.

The following information is required for voluntary disclosure:

  • name, social insurance number (SIN) and date of birth of each member of the family
  • if a business, the names of the principals of the partnership or the shareholders of the corporation,
  • along with their SIN.
  • the last personal tax returns that were filed for the individual and family members
  • the date that the eBay business started
  • if the business is a sole proprietorship, partnership or corporation: the business number
  • for a corporation, the articles of incorporation and the provincial corporate tax number
  • Financial statements, whether for incorporated companies or for sole proprietorships or partnerships, should be available to establish whether eBay income was reported when filing returns.
  • Tax returns should be available to support the financial data that indicates whether eBay income was reported.
  • For corporations or sole proprietors that are registered for GST/HST, all returns filed with the CRA from the date eBay transactions began should be made available. (If the taxpayer exceeded the threshold for registering, the CRA may retroactively register the corporation or individual.)
  • bank accounts showing all transactions through platforms such as PayPal
  • Sales income and expenses that may offset recorded income and therefore affect HST/GST/ITC should be made available. Expenses that may be allowable are those that are necessary to earn income. (It is advisable to review your expenses with your CPA.)

The court order issued to eBay defined the time frame for the information that the CRA was seeking to audit. Canadian taxpayers should not conclude that they have avoided an audit because they have not received
a notice of audit.

If your eBay account meets the criteria discussed above, contact your CPA and discuss the possibility of submitting information to the CRA under the Voluntary Disclosures Program (VDP).

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.

Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Electronic Signatures

Owner-managers have adapted quickly to transferring funds electronically, paying invoices online and scanning and sending data to and fro.

When it comes to product delivery, contracts or agreements, many are still relying on hardcopy signatures or faxed copies of paperwork to finalize the deal or witness product or service transactions. This process can be time-consuming, with the need to attend your solicitor’s or client’s site or to print and file shipping or receiving documents.

Signing documents electronically is a great solution for saving time while ensuring they are legally binding.

Two types of signatures are available that help make this process easier: a digital signature and an electronic signature. Both methods produce the same effect: The signed document is recognized as an authentic signature of a signatory and meets the Canadian standards for electronic signatures.

Canadian law regarding electronic signatures is under the guidance of the Personal Information Protection and Electronic Documents Act (PIPEDA). It states:

  • “An electronic signature means a signature that consists of one or more letters, characters, numbers or other symbols in digital form incorporated in, attached to or associated with an electronic document”
  • “A secure electronic signature is as an electronic signature that
    • is unique to the person making the signature;
    • the technology or process used to make the signature is under the sole control of the person making the signature;
    • the technology or process can be used to identify the person using the technology or process; and
    • the electronic signature can be linked with an electronic document in such a way that it can be used to determine whether the electronic document has been changed since the electronic signature was incorporated in, attached to or associated with the electronic document.”

ANDROID OR APPLE?

Most businesses will require electronic signatures with hardware and software that will allow someone to sign off on a document from anywhere. Whether you have Android- or Apple-based hardware and software, you can buy a tablet or iPad that’s Microsoft Word or Excel-compatible and allows PDF signing in an application such as Adobe Acrobat. In theory, they let you start e-signing right “out of the box.”

HARDWARE COST

The hardware cost for signature pads varies from $150 to $650. The less expensive models provide a basic touchpad and stylus, while the more expensive approach legal-sized electronic units that will provide an electronic copy of the document and a hardcopy if needed. Regardless of the unit, you’re considering, ensure your choice includes high-quality biometric and forensic capture techniques to guarantee confidentiality and reliability.

WHAT TO LOOK FOR

Most companies that offer electronic signature capabilities should provide the following:

  • You should be able to provide your signature via all of the business’s formats (smartphone, laptop, etc.). Using your finger, stylus, mouse or keyboard makes it valid.
  • It should enable a complete audit trail with date and time stamps and in-document checkboxes that ensure signees follow the expected procedure in a reasonable timeframe.
  • Your documents should be secure, encrypted and legally binding in every country.
    It should create unique signatures that can only be used by the signatory. (Only individuals authorized by an organization have document access, and all files are encrypted during transit and storage.)
  • Signatures should be able to be stored securely in the Cloud and at your premises.
  • User authentication methods should be equal to the transaction’s security need.
  • There should be multi-party signing capability for items needing more than one signature.
  • You should be able to track the progress of the document.
  • The solution should be able to integrate with the application your company is already using, such as Google Drive, DropBox or SalesForce.

AND THE COST …?

The cost of obtaining and maintaining your electronic signature template is tricky to find and understand. Most websites will not provide a specific quote. Some will start with a basic per-year cost, but will still require that you contact them to see if your business is able to take advantage of bulk discounts or discuss whether your specific application requires additional features that add to the cost.

Companies such as Adobe may offer their service as part of an integrated package. Packages are usually sold for a flat monthly or an annual fee or are based on the number of senders (similar to cost structures of most software, where more users mean higher cost). Or you may pay on a per signature basis.

As you can see, good business practice suggests that determining what the business requirements are before making a final decision will avoid disappointment and expensive upgrading. You will need to contact the supplier for help determining your specific needs, then work with them to agree on the costs to the organization for such a solution, based on how you will integrate existing systems and your needs for hardware, software, communication and reporting.

If your business has become comfortable with the paperless approach and you’re already using it for banking, invoicing, payroll, purchasing and sales, maybe it’s time to “complete the circle” and adopt electronic signatures, too.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.

Technology - Avisar - Eyes

The Eyes Have It

Reduce Eye Strain And Increase Productivity By Changing The Way You View Your Screens

Regardless of occupation, we all spend an inordinate amount of time staring at computers, laptops or smartphone screens. The result is often eye strain known clinically as computer vision syndrome (CVS). Researchers suggest that between 50% and 90% of individuals who work with monitors for more than two hours a day suffer some form of symptom.

SHIFTING FOCUS

Working in front of a computer monitor stresses the eye muscles because our eyes move across the screen in the same way over and over again. Regardless of whether your eyes are jumping between screens or moving between the screen and a document on your desk, your eye muscles become fatigued. The need for the eyes to constantly shift focus and direction plus the monitor’s flickering, contrast, and glare just add to the stress on the eye that creates eye strain.

THE AGE FACTOR

Eye stress is also affected by age. As individuals move past 40, there is a noticeable degradation in the ability to focus on close objects. This change (called presbyopia) is a normal ageing process that can usually be compensated for with eyeglasses, contact lenses, or surgery. If you do not correct presbyopia, you will be bothered by headaches and eye strain. Constant use of monitors without appropriate compensations increases problems with colour perception, blurred vision, double vision, dryness, red eyes, eye irritation, headaches, neck or back pain.

Correctly Position The Monitor

RELIEVING THE SYMPTOMS

Experts indicate the following processes help reduce CVS:

  • Correctly position the monitor: The best position is straight ahead and tilted slightly down. This reduces the need to force the eye muscles to pull the eye up. The top of the computer monitor should not be higher than the level of your eyes.
  • Blink more: Those working with monitors blink five times per minute versus a normal blink rate of
    12 times per minute. Thus, the eye does not produce the tears that help prevent inflammation by keeping open the oil-secreting glands in the eyelids.
  • Placement of Monitor: Place the monitor (including your smartphone) from 45 to 76 centimetres (18-30 inches) away from your eyes and tilt your screen to avoid glare from overhead lights. Glare creates eye strain.
  • Close the blinds: reduce back and sidelight and consider a matte screen filter.
  • Consider using computer eyewear: There are numerous and conflicting articles as to whether “computer glasses” designed to better read the monitor and to reduce the blue light emanating from the screen are beneficial. Check with your optometrist as to whether there would be any benefit in having prescription “computer glasses” before buying those online bargains.
  • Give your eyes a rest: The Mayo Clinic suggests observing the 20/20 rule. Every 20 minutes look at an object that is at least 20 feet (six metres) away for 20 seconds to relieve the stress on the eye muscles and thereby reduce the progression of nearsightedness (i.e., the inability to see far-away objects clearly)
  • Change the monitor’s display settings: Increasing the font size will reduce eye strain as will changing the contrast level on the monitor. Believe it or not, the best setting for using a monitor is the tried-and-true black text on a white background. Reducing the monitor’s brightness level to replicate a standard piece of office paper is a preferred standard. For those using more than one monitor, ensure that both are matched to the same settings.
  • Size counts: Buy a monitor that is at least 19 inches with anti-reflective surfaces. If within the budget, upgrade monitors to UHD.
  • Reduce “visual noise”: Blue light is what makes the screen look better, but it is also harder on the eyes. The Canadian Association of Optometrists states:

Computer screens and other digital devices emit significant amounts of blue light and people are spending more and more hours looking at them. The high-energy blue-light waves scatter more in the eye and [the eye] is not as easily focused. This scatter creates “visual noise” that reduces contrast and can contribute to digital eye strain.
The solution is to reduce the blue light emitting from the screen by reducing the brightness.

EYE MANAGEMENT

At the moment, there is no scientific evidence to suggest that constantly staring at monitors has any long-term impact on vision. However, from a productivity standpoint, eye strain and its accompanying maladies affect daily performance. To improve performance, owner-managers should review their computer location, office lighting and the other factors noted above to create a more comfortable and effective work environment. In addition, staff should be encouraged to have annual eye examinations and create work schedules that include breaks to reduce time staring at the computer.

Disclaimer: Avisar Chartered Professional Accountant’s blog deals with a number of complex issues in a concise manner; it is recommended that accounting, legal or other appropriate professional advice should be sought before acting upon any of the information contained therein.
Although every reasonable effort has been made to ensure the accuracy of the information contained in this post, no individual or organization involved in either the preparation or distribution of this post accepts any contractual, tortious, or any other form of liability for its contents or for any consequences arising from its use.