Your accounting software says you have: $185,000 of inventory Your warehouse count says: $143,000 That is a difference of: $42,000 Where did it go? Was inventory sold but never removed from the system? Were purchases entered twice? Did products get damaged, stolen or written off? Are supplier costs wrong? Did someone receive inventory into the...

You open your business banking app and see: Bank balance: $84,250 Then you open your accounting software. It says: Bank balance: $97,680 That is a difference of: $13,430 Which number is correct? Can you spend the $97,680? Did the business forget to record expenses? Did a customer payment get duplicated? Did someone delete a transaction?...

Your operating company is profitable. Cash is building up. You are not personally spending all of the money the business earns. Your accountant, business partner, or another entrepreneur mentions setting up a holding company. The idea sounds attractive: “Move excess cash to a Holdco, invest it there, protect the money, and save tax.” But is...

A customer sends your business a $20,000 deposit today for work you will complete three months from now. Your bank balance increases by $20,000. Did your business just earn $20,000 of revenue? Not necessarily. This is one of the most common accounting mistakes made by growing Canadian businesses. Cash arrives, the bookkeeper records it as...