benefits of a growth accountant

The Role of an Accountant in Business Growth

Small business owners in Canada often find themselves wearing multiple hats, from managing day-to-day operations to making long-term strategic decisions. While the ultimate goal for many is business growth, navigating the financial landscape can be daunting. Whether it’s improving cash flow, ensuring tax compliance, or planning for expansion, a skilled accountant can be the difference between merely surviving and thriving.

At Avisar Chartered Professional Accountants, we understand the unique challenges faced by small businesses. This article explores the pivotal role a business growth accountant plays in driving sustainable business development through financial planning, cash flow management, and strategic advisory services.

1. Business Growth Challenges for Small Businesses

For many small business owners, growth is a double-edged sword. On the one hand, it represents success and progress; on the other, it brings about new challenges that can strain resources, cash flow, and management capacity.

Some of the most common growth challenges include:

  • Cash flow problems: Businesses often see rising revenue during growth phases but still struggle with liquidity. It’s not uncommon for small businesses to face a situation where they are profitable on paper but can’t meet immediate financial obligations.
  • Financial planning: Without a clear financial plan, it’s easy to overestimate revenue and underestimate costs, leading to cash shortages. For example, unexpected expenses during a busy season can quickly derail growth plans.
  • Tax compliance: As a business grows, tax obligations become more complex. Missing deadlines, overlooking deductions, or failing to comply with changing regulations can lead to costly penalties.

To navigate these challenges, businesses need a strategic partner who can provide more than just basic accounting services—a business growth accountant can be the game changer.

2. Why a Skilled Accountant is Essential for Growth

A professional accountant brings more than just number-crunching to the table. For businesses aiming to grow, having an accountant who specializes in business development accounting can provide clarity and direction.

  • Financial clarity: Small business owners often find it difficult to get a clear picture of their financial health. Accountants generate detailed reports that allow business owners to see beyond day-to-day transactions and understand broader financial trends.
  • Tax expertise: Canadian tax laws are intricate, and missing a tax-saving opportunity could mean the difference between investing in new equipment or facing unexpected financial strain. A skilled accountant can ensure businesses take advantage of available credits, deductions, and incentives, while staying compliant with tax regulations.
  • Strategic advice: Business accountants go beyond bookkeeping. They help in crafting long-term strategies by analyzing current financial data and market conditions. Whether you’re looking to expand or streamline operations, accountants offer the insights necessary for informed decision-making.

By having a growth-focused accountant as part of the team, business owners can focus on what they do best—growing their business—while trusting that the financial foundation remains strong.

3. Budgeting and Forecasting: The Foundation for Growth

A well-constructed budget and accurate financial forecasting are crucial for business growth. These tools provide a roadmap for where the business is headed and prevent costly surprises along the way.

  • Budgeting: Creating a budget isn’t just about tracking expenses—it’s about strategically allocating resources to fuel growth. For example, an accountant may recommend setting aside funds for future expansion or unexpected costs, ensuring the business is prepared for both opportunities and challenges.
  • Forecasting: Financial forecasts are essential for anticipating future performance. Accountants use data from past performance and industry trends to predict future revenue, costs, and cash flow. This allows business owners to make adjustments before issues arise.

Having a budget without a forecast is like setting sail without knowing the weather conditions. A business growth accountant provides both, ensuring the business stays on course toward its growth goals.

4. Why Cash Flow is Critical to Business Success

Cash flow is the lifeblood of any business, and it’s particularly critical during growth phases. While increasing sales is often a priority, managing how cash flows in and out of the business is equally important.

  • Day-to-day operations: Consistent cash flow ensures that businesses can meet their daily financial obligations, like paying employees, purchasing inventory, and covering operating expenses.
  • Growth investments: If a business doesn’t have adequate cash flow, it may miss out on crucial growth opportunities, like acquiring new equipment or expanding into new markets.
  • Avoiding financial strain: Even businesses with healthy sales can face liquidity crises if they don’t manage cash flow properly. Without enough liquid assets, companies may find themselves unable to pay bills, leading to insolvency or forced borrowing at high interest rates.

Small business owners often get caught up in revenue generation, forgetting that strong cash flow management is the backbone of sustainable growth.

5. Techniques Accountants Use to Monitor and Improve Cash Flow

A business growth accountant uses several key techniques to ensure businesses maintain healthy cash flow. Here are some of the most effective methods:

  • Cash flow forecasting: Accountants project future cash inflows and outflows, giving business owners the foresight to plan for shortfalls and adjust their spending accordingly.
  • Optimizing accounts receivable: Implementing strategies to collect payments faster, such as offering early payment discounts or adjusting payment terms, ensures that cash isn’t tied up in receivables for too long.
  • Payables optimization: Strategically timing payments to suppliers to balance cash outflows
  • Controlling expenses: By analyzing expenses, accountants can help identify areas where costs can be reduced without affecting business operations. For example, renegotiating supplier contracts or finding more efficient ways to manage inventory.

Each of these techniques not only helps maintain liquidity but also ensures that the business is financially prepared to handle growth and unexpected expenses.

6. Financial Analysis and Reporting: Insights for Smarter Decisions

Business owners need accurate, timely financial data to make informed decisions. Accountants provide more than just financial statements—they analyze data to reveal trends and opportunities that can fuel growth.

  • Detailed financial statements: A skilled accountant provides comprehensive financial reports, including income statements, balance sheets, and cash flow statements. These documents are essential for evaluating business performance.
  • Key performance indicators (KPIs): Accountants help businesses track KPIs like gross profit margin, operating expenses, and return on investment. Monitoring these metrics allows business owners to stay focused on critical success factors.
  • Benchmarking: Accountants can compare the business’s financial performance with industry benchmarks, identifying areas where the business excels or underperforms.
  • Variance analysis to identify areas of concern or opportunity

Through financial analysis, business owners gain insights that empower them to make smarter, data-driven decisions.

small business profitability

7. Business Advisory Services: Beyond Traditional Accounting

Accounting isn’t just about compliance and reporting—it’s about providing actionable advice to help businesses grow. Business advisory services offer strategic insights that can lead to long-term success.

  • Strategic planning: Accountants help businesses develop long-term growth strategies. They evaluate market trends, financial data, and internal operations to create plans that are both achievable and sustainable.
  • Tax planning for businesses: Accountants provide valuable advice on how to minimize tax liabilities, ensuring that more profits are reinvested into the business. For example, identifying tax credits or structuring transactions in a tax-efficient manner can have a significant impact on cash flow.
  • Business expansion guidance: Whether a business wants to expand locally or enter new markets, accountants provide financial analysis to assess the risks and opportunities, ensuring that the growth is scalable.

Business advisory services help owners focus on what matters most—growing their business, while leaving the financial complexities to the experts.

8. Risk Management: Protecting Your Business from Uncertainty

Every business faces risks, but with the right approach, these risks can be minimized. Accountants play a key role in identifying and managing financial risks, ensuring that businesses are protected from unforeseen events.

  • Financial risks: Developing strategies to manage debt, interest rates, and currency fluctuations
  • Operational risks: Implementing internal controls to prevent fraud and ensure compliance
  • Strategic risks: Evaluating the financial implications of business decisions
  • Market risks: Analyzing industry trends and competitive landscapes

Effective risk management helps businesses remain resilient, no matter what challenges arise.

9. Supporting Business Expansion: A Financial Partner for Growth

As businesses grow, their financial needs become more complex. Expansion requires careful financial planning, and accountants are instrumental in ensuring that growth is both feasible and sustainable.

  • Feasibility studies for new products, services, or locations
  • Financial modeling for expansion scenarios
  • Identifying and securing appropriate funding sources
  • Managing the financial aspects of mergers or acquisitions
  • Navigating the tax implications of expansion

By partnering with an accountant, businesses can confidently pursue growth knowing that their financial foundation is strong.

Take Action: Fuel Your Business Growth with Avisar

Ready to take your BC business to the next level? Avisar Chartered Professional Accountants is here to guide you every step of the way. Our team of expert accountants specializes in driving business growth for small enterprises across British Columbia.

Whether you’re looking to expand your operations, optimize your tax strategy, or simply get a better handle on your finances, we have the expertise to help you succeed.

Don’t let financial complexities hold your business back. Contact Avisar today for a free, no-obligation consultation and discover how our ‘beyond the numbers’ approach can fuel your business growth. Let’s build your success story together.

Contact Avisar for a Free Consultation

Remember, in the world of small business, having the right accountant isn’t just about managing numbers—it’s about partnering with a financial strategist who can help turn your growth aspirations into reality. With Avisar by your side, you’re not just planning for success; you’re actively building it.

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.

professional business advisory services

The Benefits of Professional Business Advisory Services

Running a small business in Canada can be both rewarding and challenging. With the ever-evolving economic landscape, changing regulations, and the need to stay competitive, small business owners are constantly faced with decisions that can impact their growth and success. This is where business advisory services can add real value, offering invaluable support that goes far beyond traditional accounting.

Business advisory services are designed to provide small business owners with expert guidance on a variety of strategic and operational issues. Whether it’s navigating financial challenges, improving operational efficiency, or planning for future growth, these services can help businesses thrive in today’s competitive environment. For those looking to make informed decisions that propel their business forward, understanding the value of professional business advisory services is essential.

1. Types of Advisory Services

Business advisory services encompass a broad range of offerings, each tailored to address specific needs within a business. Understanding the different types of advisory services available can help small business owners determine which areas of their operations can benefit the most from expert guidance.

Financial Advisory Services

One of the core offerings in business advisory is financial advisory services. This includes everything from financial planning and analysis to cash flow management and budgeting. For small business owners, having a clear picture of their financial health is crucial. Financial advisors can provide insights into cost-saving opportunities, financial risks, and investment strategies that align with the business’s goals.

Strategic Planning and Growth Advisory

Strategic planning is another critical area where business advisory services can make a significant impact. This involves setting long-term goals, identifying opportunities for business growth, and developing a roadmap to achieve those objectives. Growth advisory services often include market analysis, competitive benchmarking, and strategic partnerships, all aimed at positioning the business for sustainable growth.

For small businesses, which may not have the internal resources to focus on long-term planning, strategic advisors can offer the expertise needed to create a viable growth plan. Whether it’s expanding into new markets, launching new products, or scaling operations, strategic planning services help businesses navigate these complex processes with confidence.

Operational Efficiency and Process Improvement

Operational advisory services focus on improving the day-to-day operations of a business. This can include streamlining processes, optimizing supply chains, and enhancing overall productivity. Small businesses often operate with limited resources, so maximizing efficiency is key to maintaining profitability. Advisors in this area work closely with business owners to identify bottlenecks, implement best practices, and leverage technology to improve operations.

Risk Management and Compliance

Risk management is an essential aspect of any business, especially for small businesses that may be more vulnerable to market fluctuations, regulatory changes, and unforeseen challenges. Business advisory services in this domain help businesses identify potential risks, develop mitigation strategies, and ensure compliance with local and federal regulations.

Advisors can provide guidance on everything from cybersecurity threats to legal compliance, helping small businesses protect their assets and avoid costly penalties. In an era where data breaches and regulatory scrutiny are on the rise, having a robust risk management plan is not just advisable—it’s essential.

Succession Planning and Exit Strategy

For business owners looking towards retirement or considering a sale, succession planning and exit strategy advisory services are invaluable. These services help owners transition out of their business smoothly, ensuring that their legacy is preserved and that the business continues to thrive under new leadership. Advisors assist with everything from valuation and negotiation to finding suitable buyers or successors.

Succession planning is not just about the eventual exit; it’s about preparing the business for long-term success, even in the absence of its founder. Advisors work with business owners to create a plan that minimizes disruption and maximizes value, ensuring that the business remains strong for years to come.

2. Benefits for Small Businesses

Investing in professional business advisory services can yield significant benefits for small businesses. Here are some of the key advantages that small business owners can expect when they engage with expert advisors.

Informed Decision-Making

One of the most significant benefits of business advisory services is the ability to make informed decisions based on expert insights and data-driven analysis.

Small business owners often wear many hats, and it’s easy to become overwhelmed by the sheer volume of decisions that need to be made. Advisors provide a fresh perspective, offering strategic advice that is grounded in experience and tailored to the specific needs of the business.

Whether it’s a decision about entering a new market, hiring additional staff, or investing in new technology, having an advisor by your side ensures that you’re making choices that are aligned with your business’s long-term goals. This not only reduces the risk of costly mistakes but also increases the likelihood of success.

Enhanced Business Growth

Business growth doesn’t happen by accident—it requires careful planning and execution. A trusted advisor can be instrumental in helping small businesses identify growth opportunities and develop strategies to capitalize on them. From market expansion to product diversification, advisors work with business owners to create a growth plan that is both realistic and ambitious.

For Canadian small businesses, growth can mean different things: expanding locally, entering international markets, or even increasing market share in a niche industry. Whatever the goal, business advisors provide the tools and expertise needed to achieve it.

Increased Operational Efficiency

Efficiency is the lifeblood of any successful business, and this is especially true for small businesses with limited resources. Operational advisory services help businesses streamline their processes, reduce waste, and improve productivity. By identifying inefficiencies and implementing best practices, advisors can help small businesses do more with less.

This not only boosts profitability but also frees up time and resources that can be reinvested into other areas of the business. For example, automating routine tasks or optimizing supply chains can result in significant cost savings and allow business owners to focus on strategic initiatives rather than getting bogged down in day-to-day operations.

Better Risk Management

Small businesses are often more vulnerable to risks than larger enterprises, making effective risk management a critical component of success. Business advisory services provide small business owners with the tools and strategies needed to identify, assess, and mitigate risks before they become major issues.

From financial risks to compliance challenges, advisors help businesses navigate the complex landscape of potential threats. This proactive approach not only protects the business’s assets but also provides peace of mind, knowing that potential risks are being managed effectively.

Long-Term Sustainability

For small businesses, longevity is often the ultimate goal. Business advisory services contribute to long-term sustainability by helping businesses build a strong foundation that can withstand economic fluctuations and changing market conditions. This includes everything from financial planning and cash flow management to strategic growth and succession planning.

By working with advisors, small business owners can ensure that their business is not only successful today but will continue to thrive in the future. This focus on sustainability is particularly important in the Canadian market, where economic conditions can vary widely depending on the industry and region.

Competitive Advantage

In a competitive market, standing out from the crowd is crucial. Business advisory services can provide small businesses with a competitive advantage by offering insights into industry trends, consumer behavior, and emerging opportunities. Advisors help businesses stay ahead of the curve, ensuring that they are not just reacting to changes in the market, but proactively positioning themselves for success.

Whether it’s adopting new technologies, entering a new market, or simply improving customer service, the guidance provided by business advisors can make all the difference in maintaining a competitive edge.

Get The Advisory Support You Need

For small business owners in Canada, the benefits of professional business advisory services are clear. From informed decision-making and enhanced business growth to increased operational efficiency and better risk management, these services offer invaluable support that can help businesses thrive in a competitive marketplace.

Whether you’re looking to expand your business, improve your operations, or simply make more informed decisions, business advisory services offer the support and guidance needed to achieve your objectives. For small business owners in Canada, the right advisory services can be the difference between merely surviving and truly thriving.

Ready to take your business to the next level but not sure where to start? Book a consultation with Avisar today and let our experienced advisors help you build a clear path to growth, efficiency, and long-term success.

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.

financial planning for small business owners

Essential Financial Planning for Small Business Owners

Financial planning is a crucial aspect of running a successful small business. It goes beyond just managing your books and filing taxes; it’s about strategically positioning your business for growth, sustainability, and long-term success.

Understanding the Basics of Financial Planning

Financial planning for small business owners involves creating a roadmap for the financial future of your enterprise. It includes setting goals, determining the necessary actions to achieve these goals, and monitoring progress along the way. Effective financial planning encompasses several key components:

1. Budgeting and Forecasting

Creating a budget is the first step in financial planning. It involves estimating your revenues and expenses over a specific period. A well-structured budget helps you manage your resources effectively, ensuring you can cover your costs and invest in growth opportunities.

Key Points:

  • Revenue Projections: Estimate your sales and other income sources. Consider seasonal fluctuations and market trends.
  • Expense Tracking: List all fixed and variable expenses. Don’t forget to include one-time costs like equipment purchases or software upgrades.
  • Cash Flow Management: Ensure you have enough cash to meet your obligations. Plan for potential cash shortfalls and develop strategies to address them.

2. Tax Planning

Tax planning is essential to minimize your tax liabilities and take advantage of available deductions and credits. Understanding the Canadian tax system and staying updated with changes in tax laws can save your business a significant amount of money.

Key Points:

3. Risk Management

Every business faces risks, whether financial, operational, or environmental. Effective risk management strategies help protect your business from unforeseen events and ensure its continuity.

Key Points:

  • Insurance: Evaluate your insurance needs, including general liability, property, and business interruption insurance.
  • Contingency Planning: Develop a plan to address potential crises, such as natural disasters or economic downturns.
  • Diversification: Spread your investments and revenue streams to reduce reliance on a single source.

4. Investment Planning

Investing in your business is crucial for growth and innovation. Whether it’s upgrading technology, expanding your product line, or entering new markets, strategic investments can drive your business forward.

Key Points:

  • Capital Expenditure: Plan for major purchases that will benefit your business in the long run.
  • Funding Options: Explore financing options, such as loans, grants, or venture capital, to support your investment plans.
  • Return on Investment (ROI): Analyze the potential ROI of your investments to ensure they align with your financial goals.

5. Retirement Planning

As a business owner, planning for your retirement is as important as managing your business finances. Ensure you have a solid plan in place for when you decide to step away from your business.

Key Points:

  • Retirement Savings Plans: Consider options like Registered Retirement Savings Plans (RRSPs) or Tax-Free Savings Accounts (TFSAs).
  • Succession Planning: Develop a plan for transferring ownership of your business, whether to family members, employees, or external buyers.
  • Exit Strategy: Determine how and when you will exit the business and the financial implications of your decision.

The Role of Professional Accounting Firms in Financial Planning

Partnering with a reputable accounting firm can make a significant difference in the success of your financial planning efforts. Avisar Chartered Professional Accountants offers a range of services designed to support small business financial planning.

1. Comprehensive Financial Analysis

Our team conducts thorough financial analyses to provide insights into your business’s financial health. This includes examining your income statements, balance sheets, and cash flow statements to identify strengths and weaknesses.

Benefits:

  • Informed Decision-Making: Gain a clear understanding of your financial position to make strategic decisions.
  • Performance Tracking: Monitor your progress towards financial goals and adjust plans as needed.
  • Risk Identification: Identify potential financial risks and develop strategies to mitigate them.

2. Strategic Tax Planning

Our tax experts help you navigate the complexities of the Canadian tax system, ensuring compliance while minimizing your tax burden. We stay updated with the latest tax laws and regulations to provide you with accurate advice.

Benefits:

  • Tax Efficiency: Maximize your deductions and credits to reduce your tax liability.
  • Tax Compliance: Avoid penalties by ensuring timely and accurate filing of tax returns.
  • Tax Strategy: Develop long-term tax strategies aligned with your business goals.

3. Tailored Advisory Services

We offer personalized advisory services to address your specific business needs. From financial forecasting to succession planning to corporate structure, our advisors provide practical solutions to help you achieve your objectives.

Benefits:

  • Expert Guidance: Leverage our expertise to make informed financial decisions.
  • Customized Solutions: Receive advice tailored to your business’s unique circumstances.
  • Proactive Planning: Anticipate challenges and opportunities with forward-thinking strategies.

Practical Tips for Small Business Financial Planning

To help you get started with effective financial planning, here are some practical tips tailored to small business owners:

1. Set Clear Financial Goals

Define what you want to achieve with your financial planning efforts. Whether it’s increasing profitability, expanding your market presence, or preparing for retirement, having clear goals will guide your planning process.

2. Keep Detailed Records

Maintain accurate and up-to-date financial records. This will not only help you track your progress but also provide valuable information for decision-making and tax reporting.

3. Monitor Your Cash Flow

Regularly review your cash flow statements to ensure you have enough liquidity to meet your obligations. Implement strategies to improve cash flow, such as speeding up receivables and managing payables.

4. Review Your Budget Regularly

Periodically review and adjust your budget to reflect changes in your business environment. This will help you stay on track and make necessary adjustments to your spending and investment plans.

5. Seek Professional Advice

Don’t hesitate to seek advice from financial experts. A professional accountant can provide valuable insights and help you navigate complex financial issues.

The Future of Financial Planning for Small Business Owners

As the business landscape continues to evolve, so too does the field of financial planning. Technological advancements, changing regulations, and shifting market dynamics all impact how small business owners should approach financial planning.

1. Embracing Technology

Technology plays a significant role in modern financial planning. Tools like cloud-based accounting software, financial dashboards, and AI-driven analytics can streamline processes and provide real-time insights.

2. Staying Informed

Keep abreast of changes in tax laws, financial regulations, and market trends. Continuous learning and adaptability are key to effective financial planning.

3. Fostering Financial Literacy

Promote financial literacy within your organization. Educate your team about financial management practices to ensure everyone contributes to the business’s financial health.

Conclusion

Effective financial planning is essential for the success and sustainability of small businesses. By understanding the key components of financial planning, leveraging professional accounting services, and staying informed about industry trends, you can position your business for long-term success.

For more information on how we can assist with your financial planning needs book a free consultation with one of our experts.

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.

Estate Planning for Business Owners: A Step-by-Step Guide

As a small business owner or entrepreneur, you have invested time, energy, and resources into building a successful business. But have you considered how your business fits into your broader estate plan?

Many business owners overlook the importance of integrating their business into their estate plan, which can lead to complications and uncertainties down the road. In this step-by-step guide, we will explore practical steps, considerations, and estate planning advice to help you integrate your business seamlessly into your estate plan.

Understanding the Importance of Estate Planning for Business Owners

Bringing your business into your estate plan is crucial for several reasons. Firstly, it ensures a smooth transition of ownership and management in the event of your incapacity or passing. By clearly outlining your wishes and intentions in your estate plan, you provide guidance to your loved ones and prevent potential disputes.

Secondly, it allows you to minimize tax liabilities and maximize financial benefits for both you and future generations.

Lastly, it provides peace of mind, knowing that your hard work will continue to benefit your family and legacy.

Step 1: Evaluate Your Business Structure

The first step in estate planning for business is to evaluate your business’ current structure. Do you operate as a sole proprietorship, partnership, or corporation?

Each structure has different implications for succession planning, taxes, and liability protection. Consider consulting with a legal professional specializing in business law or your accountant to ensure you choose the most suitable structure for both your business and estate planning needs.

Step 2: Identify Key Assets and Liabilities

Next, identify the key assets and liabilities of your business that need to be addressed in your estate plan.

This includes tangible assets such as real estate, equipment, inventory, as well as intangible assets like intellectual property rights and customer contracts. Additionally, consider any outstanding debts or obligations your business may have. By understanding the value and nature of these assets and liabilities, you can make informed decisions regarding their distribution and management in your estate plan.

Step 3: Determine Succession Planning Strategies

Succession planning is a critical aspect of business planning, period, but it’s also important to consider for estate planning for business owners.

Who would you like to take over the management and ownership of your business when you are no longer able to do so? This may involve grooming a family member or key employee for leadership roles, selling the business to a third party, or creating a trust to hold and manage the business assets on behalf of your beneficiaries. Each option has its own advantages and considerations, so it’s essential to carefully evaluate which strategy aligns with your long-term goals.

Step 4: Consult with Legal and Financial Professionals

Estate planning for business owners requires expertise in both legal and financial matters. Seek guidance from professionals experienced in estate planning, such as lawyers specializing in business succession and accountants familiar with the intricacies of small business ownership like the team at Avisar.

These professionals can help navigate complex legal requirements, ensure compliance with tax laws, and provide personalized advice tailored to your specific circumstances.

Step 5: Update Your Estate Planning Documents

Once you have assessed your business structure, identified key assets and liabilities, determined succession planning strategies, and consulted with professionals, it’s time to update your estate planning documents accordingly.

Review your will, trusts, power of attorney designations, and any other relevant documents to ensure they reflect your intentions regarding your business. Be sure to clearly specify how you want your business to be managed and transferred after your passing or incapacity.

Estate Planning Considerations for Family-Owned Businesses

If you own a family-owned business, additional considerations come into play when including it in your estate plan. Balancing the interests of multiple family members can be challenging, so open and honest communication is crucial.

Consider creating a family agreement that outlines the governance and decision-making processes for the business. This document can help prevent conflicts and ensure a smooth transition of ownership from one generation to the next.

Tax Implications to Consider

Incorporating your business into your estate plan involves considering various tax implications. Consult with a tax advisor to understand how different strategies may affect your estate and gift taxes, as well as income taxes for both you and your beneficiaries.

Explore options such as gifting shares of your business during your lifetime, utilizing trusts to minimize tax liabilities, or taking advantage of applicable deductions and exemptions.

Common Challenges and How to Overcome Them

Including your business in your estate plan may present some challenges along the way. One common challenge is ensuring fairness among heirs who are actively involved in the business versus those who are not.

Consider implementing mechanisms like buy-sell agreements or life insurance policies to equalize inheritances while preserving the continuity of the business.

Another challenge is maintaining confidentiality regarding sensitive business information during the estate planning process. Work closely with your legal advisors to protect trade secrets and confidential data while still achieving your estate planning objectives.

We explored a number of other potential challenges in our last post, which we’d recommend you also review when considering your estate planning.

Estate planning for business can be complex, but you don’t have to do it alone. Remember to consult with professionals specializing in business law, taxation, and estate planning to ensure that all legal requirements are met and that you make informed decisions tailored to your specific circumstances. You can also check out our free estate planning checklist for more tips.

Book a free consultation with one of Avisar’s estate planning experts to get all of your questions answered.

With careful planning, you can leave a lasting legacy that continues to thrive long after you’re gone.

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.

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estate planning for blended families

Navigating Estate Planning for Blended Families: A Guide

Estate planning is an essential aspect of planning for your family’s financial future, and it’s particularly important and delicate for blended families. The dynamics of bringing separate individuals together as a blended family create unique considerations when planning for the next generation. Here’s a guide to how you can ensure your family’s financial future is well protected.

Understanding Estate Planning for Blended Families

Estate planning for blended families requires one to take into account the unique dynamics that past relationships, biological relationships, and current relationships create. Bringing two distinct sets of parents and children together is not easy — nor is planning for all members’ financial futures.

Some common issues that blended families frequently face are issues such as:

  • How to meet the needs of all family members
  • How to manage unequal assets and incomes
  • What a fair distribution of assets looks like
  • Whether children’s inheritance should wait for the death of a step parent
  • What inheritances from separated spouses might provide
  • Other issues, such as those already faced in other areas of life

These are not small matters, and they’re bound to bring forth some disagreements that must be worked through. The goal is to work through those with clear and honest communication, as this is how you can keep disagreements from becoming outright conflicts.

Of course, working with an experienced lawyer, accountant and financial planner can be a great help when working through these matters.

Estate Planning Strategies for Blended Families

There are multiple estate planning strategies that families can use to execute their desires. Estate planning for blended families is no different:

  • Will: One of the most crucial aspects of anyone’s estate planning is creating a well-drafted will. A will serves as a legal document outlining how your assets will be distributed upon your death, ensuring your wishes are carried out and potential disputes among family members are minimized.
  • Trust: Trusts offer a controlled and flexible way to distribute assets to beneficiaries. This tool allows you to specify when and how your beneficiaries receive their inheritance, providing an added layer of control over asset distribution. It also might have implications in how your savings are spent (or not spent) during senior years. Trusts can be especially useful for blended families that might want to navigate having children in different life stages.
  • Beneficiaries: Beneficiaries are the ones who receive benefits from insurance (e.g. life insurance) and retirement accounts, and the funds can usually be distributed without going through probate when a person is a named beneficiary. Make sure to update any named beneficiaries of accounts after establishing a new blended family. This typically requires filing a simple form.
  • Documents: It’s important to plan for incapacitation due to health. Make sure you know who will make decisions, and how they’ll best follow your wishes. Taking care of this requires a living will (for financial matters) and a medical power of lawyer (for healthcare/end-of-life decisions). These may have to be redone after establishing a blended family, if your choice of who takes on each role changes.

All of these should be prepared in concert with an lawyer so that forms are legal, properly established, and thorough.

Special Considerations for Blended Families

Every blended family is unique and has its own nuances to navigate. There are certain special considerations to most blended families, though. When estate planning for blended families, all parties should be aware of the difficulties that are inherent in:

  • Navigating relationships between biological children and stepchildren
  • Ensuring the surviving spouse is financially taken care of
  • Managing existing conflicts between various family members
  • Handling tax implications that can be extensive and substantial

Again, the key to doing this successfully is open communication and working with knowledgeable professionals. Those who are familiar with the nuances of estate planning for blended families are a great resource and guide for this process.

Get Help with Estate Planning for Blended Families

No matter what your family structure is, don’t neglect to properly go through the estate planning process. If you’re estate planning for a blended family, don’t let the additional challenges stop you from tackling this.

If you have a blended family in the British Columbia area, seek professional help for the best potential process and outcome. We at Avisar Chartered Professional Accountants are here to help. We’ve worked with many blended families, are a leading firm that offers estate planning in BC, and are ready to help you.

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.

Federal Budget 2023: Previously Announced Measures

Budget 2023 confirms the government’s intention to proceed with the following previously announced tax and related measures, as modified to take into account consultations and deliberations since their release.

  • Legislative proposals released on November 3, 2022 with respect to Excessive Interest and Financing Expenses Limitations and Reporting Rules for Digital Platform Operators.
  • Tax measures announced in the Fall Economic Statement on November 3, 2022, for which legislative proposals have not yet been released, including: automatic advance for the Canada workers benefit; investment tax credit for clean technologies; and extension of the residential property flipping rule to assignment sales.
  • Legislative proposals released on August 9, 2022, including with respect to the following measures:
  • borrowing by defined benefit pension plans;
  • reporting requirements for Registered Retirement Savings Plans (RRSPs) and Registered Retirement Income Funds (RRIFs);
  • fixing contribution errors in defined contribution pension plans;
  • the investment tax credit for Carbon Capture, Utilization and Storage;
  • hedging and short selling by Canadian financial institutions;
  • substantive Canadian-controlled private corporations;
  • mandatory disclosure rules;
  • the electronic filing and certification of tax and information returns;
  • Canadian forces members and veterans amounts;
  • other technical amendments to the Income Tax Act and Income Tax Regulations proposed in the August 9th release; and
  • remaining legislative and regulatory proposals relating to the Goods and Services Tax/Harmonized Sales Tax, excise levies and other taxes and charges announced in the August 9th release.
  • Legislative proposals released on April 29, 2022 with respect to hybrid mismatch arrangements.
  • Legislative proposals released on February 4, 2022 with respect to the Goods and Services Tax/Harmonized Sales Tax treatment of cryptoasset mining.
  • Legislative proposals tabled in a Notice of Ways and Means Motion on December 14, 2021 to introduce the Digital Services Tax Act.
  • The transfer pricing consultation announced in Budget 2021.
  • The income tax measure announced on December 20, 2019 to extend the maturation period of amateur athletes trusts maturing in 2019 by one year, from eight years to nine years.
  • Measures confirmed in Budget 2016 relating to the Goods and Services Tax/Harmonized Sales Tax joint venture election.

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.

retirement planning tips canada

Retirement Planning Tips from an Expert

Learn innovative retirement planning tips and strategies from an expert: Adam Bornn, CFP, Partner, Parallel Wealth Financial Group. A complete transcript can be found below the video for those who prefer to read.

Retirement Planning Tips Canada – Transcript

“Hi, my name’s Adam Bornn from Parallel Wealth.

Today I want to talk about retirement planning and a lot of you focus on building up for retirement, but when it comes time to retire, there are a lot of important decisions you need to make. When to take your CPP? When to take your old age security? How to draw down your registered accounts?

There’s a lot that goes on between your income stream and your tax stream. So today I want to talk a little bit about things you need to think about as you head into retirement and a couple retirement planning tips that you should probably implement within your retirement plan to make it more efficient as far as giving you more after-tax income and paying less tax to CRA.

I want to share the planning software that we use here, and this is called Snap Projections. Now, if your financial planner isn’t putting a plan like this together for you, loop back with him or her and have them do this. This is part of the service that you should be paying for with your financial planner.

So what we have here is a husband and wife, they turn 65 in 2022, and they’re looking to retire. They need to transition from saving up to join an income stream. And so you’ll see here if we plug in their information, so we have some CPP, some old eight security coming in, and they each have $300,000 of RSP and 100,000 of tax-free savings that they’ve saved up and built up over time.

If we take this client, put in their information, their assets, their CPP, and map them out all the way until age 90, so assuming they’re going to live till age 90, you can see on the left-hand side here a real dollar income.

We put a 2% inflation rate in this plan of $68,694. So that is their after-tax income on an annual basis from today, age 65 retirement all the way down to age 90. The nominal dollar beside it is just the actual dollar amount they were going to have in their pocket to spend every single year. So 6$8,694. Again, this has him starting CPP right away at 65, old age security at 65 as well, and starting to draw down on the registered accounts.

If I go into Mr. YouTube here, you’ll see his CPP amount, his old aid security amount, and then again he’s taking about just shy of $12,000 out of his RRSP or RRIF at that point and about $9,000 from his TFSA. And he’s paying average tax rate or effective tax rate of just shy of 6%, so it doesn’t look too bad. And again, a nice little income in retirement of $68,700 after tax.

Now while that plan looks really good, provides a good income, and that’s typically the type of plan you’re going to get from an advisor if you get a plan at all. But what you want to look at is, okay, well what happens if I delay my CPP or delay my old age security or draw up my accounts a little bit differently? What is the total tax bill? And so again, on that plan there that you guys were looking at, the total tax bill was $227,000.

So that’s the total amount of tax they’re going to pay from age 65 until age 90. When you build out a financial plan, ask like how much tax am I paying? What is my after-tax income? What does my estate look like? Again within this plan, if I click on that total tax bill, that’s where you see that $227,000 of total tax, that’s combined.

One of the issues I have with your stock plan, which is what we’re looking at here, is if we scroll down to age 86, which is near the bottom here, you’ll see we have a bunch of RRSPs or RRIFs left at that point, close to $300,000, which create a tax bill, right?

If both Mr. And Mrs. YouTube passed away, there’d be a tax bill of about $111,000, which obviously we want to try to avoid. And the better we can avoid that tax bill and kind of that money into your pocket versus series later, obviously that’s much better. So how do we do that?

So when billing out a clear and concise financial plan for our clients, we look at a couple things. Deferring CPP is one of the biggest things. And at the end of the day, we’ve put hundreds of these plans together, and I can tell you that for 99% of Canadians, you should be delaying your CPP, your Canadian pension plan, all the way to age 70 or as close to 70 as possible.

Typically, we would only recommend taking your CPP prior to age 70 or closer to 65 for that matter, is if you had a health issue or you just needed the income, like there was no other income sources to draw from and you had to draw on your CPP just to put food on the table and pay the bills.

So, let’s take a look at the same plan here, but what we’ve done is we’ve bumped a CPP until age 70, and you’ll see that in the CPP column here. Now we’ve left old age security at 65. There’s more of a benefit to delay your CPP than your old age security. I won’t go into that in this video. We’ll cover that on a future one, but if we defer that CPP until 70, that’s going to help us out.

Now the other thing I’ve done that I’ve kind of stepped into here as well is we’ve done what we call the RRSP meltdown, and that is drawing down your registered accounts as quickly but as taxed efficiently as possible. And you’ll see here in the RRSP, so we’ve converted to a RIF and we’re drawing out about $30,000 a year until CPP starts at 70. Then we’ve scaled it back to $20,000.

What’s nice is that registered account is gone by 83, 84, so life expectancy 86, 87, that registered account is gone by the time you pass away. Now you still have that TFSA account that you can use, draw money out tax free. It’s much more efficient type of plan.

One of the other pieces of the plan when you build it like this, is not only by 83, 84, there’s no estate tax because you’ve drawn out all your RIF account or registered accounts at that point, but your only income is coming in from CPP and OAS and your tax free savings account, which is non-taxable.

Later in life. If you have to go to a care facility or you need in-home care, most institutions will build you off of your income. Now again, you could have the same income, but because it’s coming from the tax free savings account, it’s not taxable income.

So that’s one of the big benefits that we see with our elder clients in that you have the same income, but a lot of it’s not taxable, which allows you to pay a little bit less tax for rather your care facility or in-home care.

So by delaying that CPP from 65 to 70 and by drawing down your RIF account, your registered accounts, in a more tax efficient manner, and again, if you have RSPs and LIRAs and other accounts, it’s the same process. You want to draw those out in an efficient manner by life expectancy, kind of your mid 80s.

And if we do that in this plan, you can see that real dollar after tax income jumps closer to $70,000. It’s almost $1,000 more after-tax adjusted for inflation every year from age 65 to 90. So quite substantial.

Not only that, but if we look at your tax bill, we’ve reduced it from $227,000 down to $191,000. And lastly, if we look at age 86, scroll over estate tax is going to be $0. So again, it’s a much more efficient type of plan to create if you’re looking to create more income, more after-tax income, less taxes, and a better estate plan.

Typically defer your CPP using that time where you’re not collecting your CPP but need an income to start drawing down on your registered accounts.

What I want to close with today is what we call the laddered income. And this is kind of the last step of the process. We’ve created the tax and income strategy and created the most efficient plan that we can create. But now I want to create an income stream that better matches your lifestyle in retirement.

There’s a lot of research done around this, but from data retirement till about 71 to 73 years old, that’s kind of your, we call a go-go phase of retirement.

So there’s three phases of retirement. Your go-go phase until we typically map it until 75. Then from 76 to 85, it’s your slow-go stage. You might do a bit of travel, you’re still spending a bit of money, but you scale back. And then from 86 onward, it’s your no-go stage. You’re not spending much, you’re not doing much. It’s a much lower expense time of life for you moving forward.

So, I want to create more of a laddered income strategy. So if I take that same scenario that we just looked at and ladder it out, here’s what it looks like.

So again, instead of $69,600 per year, we’ve laddered it out at $75,000. So giving you more early, you can travel more, you can spend more money, Let’s allow you to do that. So $75,000 all the way down to age 75. Then we’ve scaled it back to $65,000 from 76 to 85, and then down to just shy of $61,000 later in life.

So still lots of money later in life, enough to pay the bills. And again, for those of you that have real estate, typically you wouldn’t sell real estate in the plan, you might downsize if you want to downsize, but if you have to go to a care facility or need in-home care, there’s always that asset in the background to lean on.

Plus you still have $5,000 after tax of income from 85 onward. I don’t know any clients of mine that are spending that amount of money at that point in their life, it’s typically 1,500 to $2,500 a month. So there’s lots of free cash flow there to help for a care facility or in-home care for those of you that are worried about that.

So hopefully that gives you a bit of a glimpse on what you should be looking for when your financial retirement plan is built out. Again, you want to look at when is the best time for you to take your CPP and hold date security and again, have your advisor run that for you and show you the differences of taking it now, whatever that means for you, 65, 70, somewhere in between, same with your old date security, look at the tax situation, your estate tax situation.

All these things come into play. Again, you want to create the most efficient tax and income strategy for you, and then look to create that laddered income. Again, you want more money early in retirement, but with the peace of mind that you’re going to have enough later in life.

I know doing this for the last 17 years that most people when they hit retirement, they’re not spending enough money early in retirement. What creating that laddered strategy does is it gives you that peace of mind of look, I can go spend that $75,000 knowing that I still have 60 later on in life.

So thanks again for joining me again in this video. Hope you enjoyed it. Hopefully you learned something through these retirement planning tips and we’ll do this again soon. Thank you.”

You can get more great insights and tips from Adam on his own YouTube channel.

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.

commercial real estate investing

Why Commercial Real Estate Chose Me As An Investor

Our guest expert for this post is Darcy White of Westred Partners Inc. You can learn more about him at the end of this post.

Robert Kiyosaki, in his 44 million copy selling book on personal finance, Rich Dad, Poor Dad: What the Rich Teach their Children about Money that the Middle Class and Poor do Not! (1997) offered, as a teaching metaphor, a comparison between his highly educated and successful father (Poor Dad) and his less educated entrepreneurial best friend’s dad (Rich Dad). His own father, a high earning professional, suffered by comparison to the low wage, entrepreneurial dad who is revealed to eventually own a portfolio of high equity commercial real estate.

I have lived Kiyosaki’s metaphor. My father was an electrical contractor who built sawmills and dry kilns all over Western Canada. He was a capable, honest, and respected tradesman, and I am proud to be his son and carry his name. My father-in-law was a real estate developer, landlord and investor. And, while I owe much of what I have to both of these two men, I am not an electrical contractor. I own and manage a real estate investment company that I have named after my father-in-law.

Over the past 22 years I have created, financed, and led three different investment companies focused upon identifying distressed commercial real estate (CRE) properties with unrealized, or latent value. I have purchased, renovated, re-financed, and eventually realized a favorable return on investment in them.

CRE encompasses residential housing, warehousing, retail, and office spaces, and each has a risk profile that is influenced the quality of the building and lands, security of tenancies, prevailing capitalization rates, interest rates, and always “location, location, location.”

Risk vs Reward

When my partners and I undertake a commercial real estate project, we believe that we are engaging in a predictable, projectable, and a low-risk enterprise. Commercial real estate (CRE) has its specific and endemic risks, however, as an asset class it can be purchased with leverage, appreciates faster than the inflation rate, has relatively weak management competition, and is operationally uncomplicated.

Returns on Investment

Returns in real estate are taxed or tax-deferred, and, depending upon your investment goals, can be timed for tax efficiency. Payment of mortgage principal are taxable. So are the incomes after allowable expenses. However, asset appreciation in the market, which can be substantial is deferred and can be timed through refinance or sale of the asset.

Operational Expectations

A good manager might be able to realize double-digit annual returns in the range of 4% capital repayment, 4% free cash from operations and 4% market appreciation. However, paying down principal, refinancing, raising rents, and improving operational efficiencies can improve those returns every year.

Limitations of Commercial Real Estate Investing

While there are varied ways to participate in a CRE investment, usually the bar for investing, outside of a registered fund, is high. To be clear, CRE is not usually the way to make a quick buck. All investments are measured “over time,” and real estate is no different. Good commercial real estate investing is a patient process and may not be for all investors.

Recommendations for Investing in Commercial Real Estate

I am not an evangelist; however, I do urge those involved in high income, low asset value businesses to consider adding well-chosen, investment class real estate to their financial portfolio. Participating in CRE can be as simple as renting a (legal) suite in your home, owning your business’ facility, participating in RRSPs that include real estate, or partnering in a syndicated real estate partnership. I have participated in all the above, and in the right circumstances, I regard each as a reasonable approach to building wealth. 

Cautions

However, like all financial decisions, I would counsel engaging industry professionals: financial planners, accountants, and legal counsellors in the process. There are no shortcuts to executing a good financial plan, and the cost of fixing one is high. As an aside I must acknowledge that my progress and results are evaluated, accounted for, and reported on for taxation, right here at Avisar.

Acknowledgements

If I were to advise my hardworking father in 1982, I would have insisted that he invest some of the earnings from his best years into commercial real estate. When he retired in 1996 and laid down his tools, his earnings ceased with the collection of his last outstanding account. By comparison, when my asset-rich father-in-law retired in 1996, his net worth increased in value more than 150% over the next decade while his earnings continued to rise. Moreover, he was able to exercise provisions in the Canadian Tax Act to optimize his CPP, OAS, wage, shareholder provisions, and a host of other rights available to him (See your professional accountants at Avisar for more on this 😊).

I need to come clean. I did not research and discover real estate – I was neither that prescient nor clever. Rather, real estate found me. My father-in-law invited me to join him and manage his real estate assets. However, I was a willing student and quickly discovered that I loved what I do working in real estate.

I love my work.

Finally, to be clear, both of my fathers were rich in the ways that truly mattered. Both were beloved spouses, good parents, and doting grandfathers. They were dear friends to many, supporters of numerous charities, community builders, and good men. These were truly great men, and their legacy extends beyond their net worth.

For the record, I also recommend carry-on luggage, paying for tour guides in museums, purchasing good shoes, always stopping on road trips for go-carts and ice cream, buying as good a wine as the occasion demands, tipping, and splitting the entre.

I podcast weekly at: https://soundcloud.com/advanced-rei

I write on real estate, leadership, and dadding at: www.darcywhite.ca

And I can be reached at: darcy@westred.ca Cheers to meaningful work, community building, and making a difference!

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.

estate planning checklist

The Ultimate Estate Planning Checklist: Business and Personal

If you’re like most Canadians, you probably haven’t given a lot of thought to having a plan for after you pass and aren’t sure where to start. That’s why we compiled this helpful estate planning checklist for business owners and individuals.

According to a 2018 Angus Reid poll 51 percent of Canadians had no will in place, and only 58 percent of those 55 and older had one. And a will is only one element of your estate plan.

It’s not something most of us like to dwell on, but having a plan in place for what happens to your assets after you pass will make it much easier for your loved ones in a time when they are already coping with the emotional toll of your death. Use this estate planning checklist to ensure you have the right pieces in place.

Estate Planning Checklist for Individuals

There are two key documents that make up the first two items on our estate planning checklist:

Power of Attorney

A power of attorney, also called a living will, sets out who will make decisions on your behalf should you become unable to do so. Be sure this is someone you trust and that they are aware of your wishes under various circumstances.

Your Will

Your will is the cornerstone of your estate plan. It sets out how your assets will be distributed and who will oversee the process (your executor). Some things you will need to decide/document in your will:

  • A list of your assets
  • Beneficiaries (are there specific items you want to leave to certain people, or will your assets be divided equally between all beneficiaries?)
  • If your beneficiaries are minors do you have a trust or guardian in place?
  • Are you donating any assets to charities?
  • Who is your executor? This is the person responsible for carrying out your wishes as outlined in your will. You can name one or more people to this role and you should peak to your executor to be sure they are willing and able to carry out their duties.

Other items to consider when creating your estate plan include:

  • Funeral wishes – ensure your family is aware of your wishes in case your will is not read until after the funeral
  • Life insurance – make sure all beneficiaries are up-to-date
  • Location of key documents – make sure your family is aware of the location of key documents like your will and power of attorney
  • Digital assets – most of us have multiple social media profiles and accounts with various online entities. Compile a list of these, including passwords, and make sure your family is aware of how you want them dealt with after your death or incapacitation.

Estate Planning Checklist for Business Owners

If you’re a business owner you also have to think about how your business assets and responsibilities will be dealt with when you die. In addition to the items in the individual estate planning checklist, here are some items you may consider depending on your situation:

  • If you are a Sole Proprietor your business assets and liabilities will be treated as personal and should be accounted for in your will
  • Have a succession plan in place
  • Who will deal with closing your CRA account if the business will be dissolved?
  • Creating an emergency business plan
  • If you have partners or shareholders, prepare shareholder/partnership buy-sell agreements or other contractual arrangements
  • Should you create a holding company for your assets?
  • Is an estate freeze necessary to protect against capital gains? 

More on estate planning for business owners here.

Estate Planning with Your Accountant

Most people think about lawyers when they think about estate planning, and certainly they are important when preparing your will and power of attorney. But working with your accountant can help you create an estate plan that ensures your goals (personal and professional) are achieved.

An accountant can provide insights and develop a plan that minimizes the tax implications to your estate and beneficiaries, and make the process as easy as possible for your loved ones. At Avisar, we help our clients with:

  • Will review and planning, including written instructions to a lawyer
  • Assessing the appointment of executors
  • Succession planning including potential business re-structuring
  • Advising on the use of trusts and additional companies
  • Estate freezes
  • Analysis of methods to preserve wealth
  • Recommendations for the possibility of incapacitation
  • Coordinating with your insurance broker to cover potential taxes and debts
  • Advising your executor after you’re gone

If you haven’t started your estate planning yet use this checklist to get started and then schedule a free consultation with one of our estate planning experts to discuss how we can help ensure your estate plan will achieve your goals.

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.