financial goal planning for businesses

Financial Goal Setting That Moves Your Business Forward

As a business owner, you’re probably used to setting goals. Many business owners, though, miss a very important category when they are setting goals.

They often focus on growth goals like increasing revenue or market share; customer-focused goals like improving customer satisfaction; operational goals like streamlining processes; or employee goals like reducing turnover. What’s often missed are financial goals.

This can be because it’s assumed that financial goals are just the outcomes of achieving other goals. If I increase revenue, my profit margins and cash flow will improve (not always). Or it can be an uncertainty of where to start. Should you be looking at profit? Cash flow? Sales? And how do you tie those goals back to the bigger picture?

In this guide, we’ll walk through a smarter, more straightforward way to set financial goals for your business. The kind that give you clarity, help you make confident decisions, and support the future you’re working hard to build.

Why Financial Goals Matter (More Than You Think)

It’s easy to think of financial goals as just numbers on a spreadsheet. Revenue targets. Expense limits. Profit margins. But that view can hold you back.

Financial goals aren’t about chasing figures for the sake of it. They’re about bringing structure to your decision-making. When goals are set with intention, they give you something every business owner needs more of: clarity.

Without clear goals, it’s easy to drift. You might make decisions reactively, spend where you shouldn’t, or miss out on growth opportunities simply because you didn’t know what to aim for. This lack of focus often leads to stress, second-guessing, and that nagging feeling that you’re working hard but not making real progress.

On the other hand, when your goals are well-defined and grounded in reality, they act like a filter. They help you decide what to do next, what to ignore, and where to invest your time, money, and energy. Instead of reacting to every new challenge or idea, you’re choosing with purpose.

In other words, goals aren’t just about hitting a target. They’re how smart businesses stay on track.

The Building Blocks of Effective Financial Goal Setting

The key to setting financial goals is to focus on what actually moves your business forward, not just what looks good on paper.

Goals shouldn’t just follow industry benchmarks. They should reflect your personal vision. Whether you’re working toward more freedom, security, or time off, your goals should support the kind of business you want to build.

Be Specific, But Flexible

Vague goals like “grow revenue” are easy to ignore. Instead, aim for something clear and measurable, like “increase the gross profit margin by 5%.” To stay adaptable, try using three goal levels:

  • Floor: the minimum result you’ll accept
  • Target: the expected outcome
  • Stretch: your best-case scenario

Include Profit and Cash Flow

Revenue alone doesn’t tell the full story. Build your goal structure around:

  • Revenue
  • Gross profit margin
  • Operating cash flow
  • Owner’s compensation

These give you a complete picture of financial health and a better basis for every decision you make.

Common Mistakes to Avoid When Setting Financial Goals

Even with the best of intentions, financial goals can fall flat if they’re built on the wrong foundation. Here are some common missteps — and how to stay clear of them.

  • Focusing only on revenue
    Revenue growth is important, but without tracking profit or cash flow, it can create a false sense of success that can let failure sneak up on you.
  • Confusing personal and business goals
    It’s natural to blend the two (particularly for new business owners), but unclear boundaries can lead to decisions that hurt both. Define each separately, then look for alignment.
  • Ignoring timing and tax implications
    A well-timed purchase or delayed expense can change your financial outcome. Good goals take into account the tax calendar and your cash cycle.
  • Setting goals without action plans
    A goal without a plan is just a hope. Break each goal into steps and assign accountability wherever possible.
  • Skipping regular reviews
    It’s not enough to set goals in January and check in next December. Build in monthly or quarterly check-ins so you can adjust along the way.

Your Simple Goal-Setting Framework

If you’re unsure where to begin, start with a basic framework that helps you set goals with focus and follow-through. Use these three steps to move from uncertainty to action.

1. Reflect

Before setting new goals, take stock of what’s behind you.

  • What worked well last year?
  • What didn’t?
  • What do you want your business to provide? Income, freedom, stability?

This step helps you anchor your goals in reality and purpose.

2. Define

Choose three to five financial goals that matter to you.
For each one:

  • Set a clear metric
  • Choose a time frame
  • Identify lead indicators (the actions or habits that move the goal forward)

This keeps your goals measurable and connected to your daily decisions.

3. Activate

Turn your goals into action:

  • Assign responsibilities
  • Set monthly or quarterly check-ins
  • Loop in your team where needed

Progress comes from planning, but also from consistency.

Want help putting this into practice?


Download the Financial Goal Planning Worksheet to walk through each step with clarity and focus.

Real-World Scenario: From Reactive to Proactive

Imagine a retail business owner in Langley. Their shop is busy, sales are steady, and customers keep coming back. On the surface, things look good. But behind the scenes, they’re constantly scrambling.

Bills sneak up without warning. Tax deadlines feel like surprises. There’s never quite enough set aside for the slower months. And despite the hard work, the owner isn’t paying themselves regularly.

This isn’t unusual. In fact, it’s a common place to be when a business is running on instinct instead of intention.

Now imagine that same business with a few key financial goals in place:

  • A cash reserve target to cover two months of expenses
  • A minimum gross profit margin set and tracked
  • A monthly salary allocated for the owner, and paid consistently

With those goals in place, spending becomes more thoughtful. Cash flow is easier to manage. Tax planning starts early instead of last minute. And decisions, like whether to hire, expand, or invest, are made with more clarity and less stress.

Financial goals won’t solve every problem, but they create a shift. From reactive to proactive. From scattered to focused.

How to Stay On Track Throughout the Year

Setting goals is important, but sticking with them is where the real progress happens.

One of the easiest ways to stay focused is to schedule regular reviews. A quick check-in every month or quarter keeps your goals top of mind and gives you the chance to course-correct early.

Start by comparing your budget to actual results. Are you ahead? Falling behind? What changed, and why? These conversations help you make informed choices before small issues become bigger ones.

If spreadsheets feel overwhelming, don’t worry. You can use simple dashboards or even visual trackers that show key numbers at a glance. The point is to keep your goals visible, not buried in a folder somewhere.

Accountability also makes a difference. Whether it’s a business partner, a team member, or a trusted advisor, having someone to walk through the numbers with you adds perspective. And it can help you spot things you might otherwise miss.

If you’re not sure what to look for in your numbers, our Financial Statement Guide is a great place to start.

The more often you check in, the more likely you are to stay on track.

Let’s Make 2026 Your Most Intentional Year Yet

Running a business is full of moving parts. It’s easy to get caught up in the day-to-day and lose sight of the bigger picture. That’s why setting clear, thoughtful financial goals is one of the most valuable steps you can take.

It’s not about being perfect. It’s about making better decisions with the information you already have, and creating a plan that works for your business.

Whether you want to grow, simplify, or just feel more in control, having the right goals in place can help you get there with less stress and more clarity.

Not sure where to start? You’ve got options.

Download our free Financial Goal Planning Worksheet or book a free consultation and let’s talk about how to set financial goals that actually support your business and the life you’re building.

Book a free consultation and let’s talk about how to set financial goals that actually support your business and the life you’re building.

Understanding Tariffs: What Should You Actually Worry About?

If you’re running a business that trades across the border, you’ve likely seen the headlines about U.S. tariffs on Canadian goods. But for many entrepreneurs and business owners, the big question is:

“How does this actually affect me?”

Rather than getting caught up in the noise, we recommend focusing on a few clear and trustworthy resources that can help you make sense of the current landscape:

Tariff Toolkit – Greater Langley Chamber of Commerce – Created by our colleagues at the Chamber, this is a straightforward, practical guide to help business owners understand how tariffs work and what they might mean for your operations.

Canada-U.S. Trade Tracker – Canadian Chamber of Commerce – Want to explore how trade flows are affecting your sector or region? This online tool lets you dive into real-time data and trends to get a clearer picture.

CanExport SMEs Program – Thinking of entering international markets? This federal program may provide funding to help small and medium-sized businesses explore and expand globally.

We’re Here to Help

While we don’t specialize in trade policy or tariff consulting, we’re always happy to be a sounding board or point you toward trusted resources. Whether it’s helping you understand how new developments might fit into your bigger financial picture or simply knowing where to look next—we’re here to support your business however we can.

tax deductions 2023

Don’t Miss These Deductions On Your 2023 Tax Return

As small businesses gear up to file their 2023 tax returns, it’s important to know which deductions to look for. Knowing about common and new deductions can save money and reduce your ongoing tax burden.

Knowing the common deductible expenses and changes to the tax code can help you save money on your 2023 returns and plan for 2024 spending and tax obligations.

Common Small Business Tax Deductions

Businesses who qualify can take the Small Business Deduction. The Small Business Deduction is the most common deduction small businesses use.

The Canada Revenue Agency (CRA) lowers the overall tax rate for businesses that meet the following criteria:

  • Based in Canada, though it may conduct business across borders
  • Private corporation
  • Less than $10 million in taxable capital employed in Canada, including shareholder equity, loans, advances, surpluses and reserves

The credit applies to the first $500,000 of taxable capital deducted from active business in Canada.

There are other common tax deductions small businesses can take. Tax-deductible expenses generally fall into one of three categories:

  1. Items used exclusively in your business’s operations
  2. Expenses incurred within the space in which you conduct business, such as utility costs in rented office space
  3. Things used while conducting your business

Deductions Many Small Businesses Miss

  • Start-up costs, including machinery, equipment and supplies, along with fees for legal advice or accounting services
  • Marketing and advertising costs, such as business cards, flyers, trade show fees, or the cost of ads on Canadian television and radio shows
  • Office supplies, such as pencils and pens, stamps, stationery and cleaning supplies
  • Business supplies that your business uses to provide its goods and services
  • Rent provided for the space you use for the business, including land and buildings
  • Utility charges, such as heat and electricity, along with insurance, maintenance, mortgage insurance and property taxes
  • Telephone and internet charges
  • Home office expenses, for the percentage of your home that is used exclusively for your business

What You Can’t Claim

In addition to knowing what you can deduct, it’s smart to understand what expenses you can’t claim, including:

  • Wardrobe and clothing
  • Parking tickets and fines
  • Commuting costs
  • Club and gym membership fees
  • Life insurance premiums

Alternative Minimum Tax Changes

There are many changes to 2023 tax returns that could apply to your small business and personal returns.

One of the most notable changes is to the alternative minimum tax law (AMT). The alternative minimum tax ensures that high-income taxpayers still pay a minimum amount of tax, even when their income includes sources that are tax-exempt.

The proposed changes to the AMT would shift the exemption from the first $40,000 of income, with the balance subject to a 15% tax rate, to the first $173,000 with the balance is taxed at a 20.5% rate. Most provinces have their own AMTs based on a portion of the federal AMT.

In addition, capital gains are now fully included in the AMT calculation at 100%, compared to the previous 80% rate. Additional trusts, including Graduated Rate Estates and Qualified Disability Trusts, are now eligible.

Capital gains on donated property are now taxed at 100%, while donations of securities or employee stock options are now taxed at 30%. Capital loss carryovers are now deducted at 50%, down from 80%.

Other deductions, including employment and moving expenses, are now deductible at 50% instead of 100%.

For business owners, the AMT changes could mean an increased tax liability for high-income individuals due to the change in the tax rate, donation rule changes, and potential exposure for those who receive stock-based compensation.

New Tax Rules for 2023 Returns

In addition to the changes to the AMT, here are some of the other changes that could apply to your small business and personal returns.

  • Adjusted Tax Brackets. Due to the dramatic inflation rates in the past year, the federal government has changed the tax brackets, each with increased thresholds. The new brackets and tax rates are:
    • Up to $53,359 (15%)
    • Up to $106,716 (20.5%)
    • Up to $165,430 (26%)
    • Up to $235,675 (29%)
  • Change to Home Office Deductions. During the COVID-19 pandemic, the federal government made it easier to claim home office deductions in the 2020-2022 tax years. However. The flat-rate method no longer applies, meaning taxpayers need to use the detailed method, which requires more documentation
  • Basic Personal Amount (BPA) Change. The BPA is the income a person in Canada can earn without being subject to federal income tax. In 2019, the federal government announced that the BPA would increase annually until it reached $15,000 in 2023. However, the rate will be adjusted for inflation, with the 2024 level set at $15,705. There are also provincial BPAs that vary by province and territory
  • Tax-Free Savings Account (TFSA) Dollar Increase. The TFSA limits continue to increase, from $6,500 in 2023 to $7,000 in 2024. Individuals can contribute to a TFSA as soon as they turn 18; any unused amounts from previous years can carry over
  • Registered Retirement Savings Plan (RRSP) Limit Increase. The RRSP contribution limit increased in 2023 to $30,780, an increase of $1,570. Note that the RRSP contribution level is still capped at 18% of total income

Payroll Changes for 2024

  • Employment Insurance (EI) Premium Increases. As of January 2024, the EI premium rate has been set to $1.66 per $100 of employee earnings, up from $1.63, and $2.32 per $100 for employers, up from $2.28. The maximum employee contribution is $1,049.12 plus an employer contribution of $1,468.77.
  • Canada Pension Plan (CPP) Premium Increases. As of January 2024, the CPP premium rate remains at $5.95 per $100 of employee earnings with a matching employer contribution. The maximum employee contribution is $3,867.50 plus an employer contribution of $3,867.50. Self-employed individuals pay both portions on filing their personal tax returns. In addition, on earnings above $68,500 up to $73,200 there is an additional 4% contribution, plus employer portion, required as an enhanced CPP contribution.

When looking to save money on your tax returns, it’s a good idea to have a professional help with the preparation and planning. Tax laws are complicated and constantly changing.

Book a free consultation and get advice on how to make sure you aren’t missing out on deductions and paying more tax than you need to. .

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.

build your own pension plan

Build Your Own Pension

This week’s guest experts are Matt Redshaw, Portfolio Manager, Raymond James Ltd., and Jacqueline Knoblauch, Insurance Planning Specialist, Raymond James Financial Planning.

As a business owner, you may not have a gold-plated pension plan that often comes with a more secure job – such as being a teacher or government employee.

Thankfully, you have some tools in your toolbox that most employees don’t have.

With some planning, you can create a secure and enjoyable retirement – in effect, you can build your own pension. In other words, you can create your own dependable sources of retirement income.

The first step is to determine how much you need to put aside each year to meet your future lifestyle goals in retirement. This is best done with a qualified financial advisor, although there are some great tools online to get you started.

The next step is to identify which vehicles are best for you given your unique circumstances. Then you can start building your plan.

Here are some of the tools to consider:

Invest Inside Your Corporation

When you invest inside your company you defer tax into the future. Your corporate profits up to $500,000 are taxed today at 11% and then 27% on income above $500,000 (using BC corporate tax rates). These tax rates are much lower than if you take this money out of the company personally. You can invest up to 89 cents on every dollar you earn in the company (assuming 11% active business tax).

Those “89 cent dollars” grow year after year in your company. In contrast, if you were to pull those funds out of the company as salary, you could lose as much as 53.5% in personal tax (this tax rate kicks in at $227,091 of personal income in 2022). That leaves you with “46.5 cent dollars” to invest. Therefore, the key advantage of investing in your corporation is that you can invest the full “89 cents” and let it grow for years and decades to come.

Another benefit is flexibility. You can buy stocks, real estate, other businesses and alternative investments in your corporation. You can also control when that money eventually comes out of the company. Make sure you are utilizing tax efficient investments in your corporation, because tax on income from investments (passive income tax) is significantly higher than active income. Again, a qualified financial advisor can help with this.

Create an Individual Pension Plan (IPP) in Your Corporation

As a business owner, your company can create an official, registered pension plan with you as the beneficiary (you can also include key staff). This is called an Individual Pension Plan (IPP). The main benefit of an IPP is that in many cases it allows you to contribute much more towards your retirement than you could through an RRSP. Contributions are tax deductible to your corporation. There other benefits, such as tax-deferred growth and a high level of creditor protection.

Build up Your RRSPs and TFSAs

Registered retirement savings plans (RRSPs) and tax-free savings accounts (TFSAs) often form a key part of a business owner’s “pension” plan for the future. Contributing to RRSPs makes sense when your personal income today is high in comparison to your expected income in retirement.

This is because you want to get a high tax refund for contributing today, and ideally pay less tax when you pull that money back out in retirement. TFSAs make sense for most people. While they do not offer a tax deduction when you contribute, TFSAs grow tax free for life and eventually pay out to your beneficiaries completely tax-free. In this sense TFSAs are an ideal retirement and estate planning tool.

Utilize Tax-Exempt Life Insurance in Your Corporation

Often thought of only for mortgage protection or for those with families, cash value life insurance is a highly tax efficient tool to accumulate wealth for retirement. Cash value life insurance has a death benefit like a regular insurance policy, but there is also an investment (cash value) component.

If purchased inside your company, premiums can be paid with “pre-personal-tax” dollars (think of those 89 cent dollars referenced above). A portion of those premiums grow in a tax-exempt environment which generates investment value (cash value) over time. The policy owner has the option to tax-efficiently meet retirement income needs by borrowing against the policy, or to let the policy to continue to grow tax-exempt until life expectancy.

Upon death, a large portion of the policy flows out of the company tax free to beneficiaries. Utilizing these types of contracts has become increasing popular among business owners as tax rates continue to climb and tax saving measures continue to be reduced.

While you may not have a gold-plated pension plan from a government job, you can build your own pension. Just follow these steps:

  1. Define your retirement goals and income needs in the future.
  2. Figure out how much you need to save each year to meet those goals.
  3. Then start using the right tools for your unique situation to build a reliable income stream for retirement.   

If you have any questions about your unique situation and goals, don’t hesitate to contact your team at Avisar or Matt Redshaw at Raymond James.

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.

How Often Should I Review My Financial Statements?

How Often Should I Review My Financial Statements?

For small business owners, reviewing financial statements is one of the key factors in whether the business succeeds. This is something that can be easy for small business owners to overlook. They pay attention to the day-to-day activities of their trade, dealing with customers, and creating their products.

Often, entrepreneurs and small business owners put off reviewing financial statements or wait to go over them with their accountants. But reviewing your financial statements on a regular, more frequent basis can help you spot trends and identify opportunities and issues early on.

Reading and understanding a financial statement is not as difficult as it appears. Learning the basics helps small businesses gather insights about their growth and how to improve. These insights allow business owners to make strategic decisions to scale their offerings for greater success.

According to the Small Business Association, the success rate of small business owners that only go over their financial reports yearly is only 25-35%. As high as 75% of those business owners will fail. At the same time, there’s a 95% success rate for business owners who go over their financial reports weekly.

Setting a Schedule to Review Financial Statements

Many business owners fall into the habit of only reviewing their financial statements once a year with their accountant. Some business owners do their accounting internally and only review statements when it’s time to report income, either quarterly or yearly.

This poses some serious risk because it’s impossible to accurately track business growth, profits, and losses without reviewing the information regularly. Paying attention to bank statements alone won’t provide a good overview of the business’s financial health.

Financial statements, though, can be intimidating. And that may be a big reason that any many small business owners put off reviewing them more often. But a few tips like the ones we shared in this post about how to read financial statements can make it much easier.

Information about each of the reports listed in the section below can help entrepreneurs choose the right reports, learn to compile them, and use them effectively. It’s also an excellent idea to work with a financial professional to determine the right reporting for the business and industry and ensure your financial statements are accurate. 

At Avisar Chartered Professional Accountants, our experienced team works directly with business owners to explain the type of reporting that is most useful for their industry and business model. We understand that our entrepreneurs have a passion and brilliance for their own industry. We cut out the jargon to make understanding and using financial statements simple and effective.

Financial Statements Business Owners Need to Review

Keeping a handle on bank statements is an important consideration for personal finance, but business health needs a more robust approach. Here are some of the financial statements that most businesses should be reviewing on a regular schedule (weekly or monthly). 

  • Income Statement
  • Balance Sheet
  • Cash Flow Statement

We covered these statements in more detail in a post about judging a business’s health. Here, we’ll give a quick overview and tell you how often to review these statements in your business.

Income Statement

We advise that you look at your income statement once a month. For smaller businesses, looking at them quarterly may be sufficient, but you don’t want to push it longer than that.

An income statement is also called a Profit and Loss Statement. These are the same reports, and they might also be called a “P&L”. This statement shows the revenue a business generates from business or services, as well as the costs to generate that revenue. All the expenses and overhead of running a business are accounted for, as well as the income and actual profit.

Income statements are important because they clarify how much the company spends for each project or product, for a clear picture of the profit.

Balance Sheet

Balance sheets should be prepared and reviewed quarterly. Don’t wait a full year to review your balance sheet.

A balance sheet is an overview of the company’s current finances. It shows the assets, debts, and equity the company holds during that reporting period.

Cash Flow Statement

Cash flow statements should be reviewed frequently, on a weekly basis for most businesses. 

The cash flow statement is a report that shows all the data on incoming cash, or income the company receives, as well as the outflowing cash, or expenditures. The cash flow statement is an aggregate report. It includes all revenue streams tied to the business and is especially important for businesses that have multiple revenue streams.

How Business Owners Can Get a Handle on Their Books

For small business owners, the terminology surrounding financial reporting can be intimidating. However, putting off reviewing financial statements can hinder the business. There are numerous sources to learn the basics, and it’s highly advisable for small business owners to work with an expert to set up their reporting and review schedule.

For more on reading and understanding check out our Guide to Reading Financial Statements for Business Owners.

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.

COVID-19 Temporary Wage Subsidy For Employers

On March 18th the Government of Canada announced a Temporary Wage Subsidy (“Subsidy”) as part of its COVID-19 response plan for businesses.  Canada Revenue Agency (“CRA”) has provided further details on the Subsidy, which can be found at the following website. The relevant legislation can be found here.

The Subsidy is a three-month measure that will be available to “eligible employers” to reduce the number of payroll deductions (federal, provincial, territorial income tax) required to be remitted to CRA. 

An “eligible employer” includes the following entities with a business number (or payroll account) on March 18, 2020, and who employ one or more individuals employed in Canada:

  • Registered Charities and non-profit organizations;
  • Individuals (i.e. sole proprietors), other than a trust;
  • Certain partnerships;
  • Canadian-controlled private corporations (“CCPC”) that could claim any portion of the small business deduction and where taxable capital employed in Canada for the preceding tax year (calculated on an associated group basis) is less than $15 million.

The Subsidy amount is equal to 10% of the remuneration that the eligible employer pays between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer.    Associated corporations are not required to share the maximum subsidy of $25,000 per employer.

CRA indicates that to claim the Subsidy, the eligible employer can reduce its next remittance of payroll that includes the period of March 18th to June 20th.  For example, a monthly remitter would reduce its next remittance due on April 15th.  Most payroll providers (ex. ADP or Ceridian) will have their own processes for claiming the Subsidy and so the employer will need to check with their provider on this matter.   Also, the Subsidy amount received by the employer will have to be reported as income in the tax year received by the employer.

Please feel free to reach out to us if you have any questions.

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.