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Accounting for Your Practice

5 months before
Open a business bank account
You will need your business registration papers for this step.

Purchase a bookkeeping system or interview and hire a bookkeeper

  • So-called “One Write” systems are good
  • Although hiring a bookkeeper is probably best when starting out, Ledgers is one service that specializes in bookkeeping for naturopathic doctors, but there are many others providing small business services.
  • Expect to pay between $100 and $300/month.

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There are accounting packages that are inexpensive and make accounting quite fun. Quickbooks and Accpac are two of the most widely used, although you should spend three-four hours getting your head around them before turning them over to your bookeeper. With Quickbooks, you can log in to go to their site as a teacher (use code: education) and download the software. You will have to call 1-888-829-8689 to register the product, but it is free to use for 12 months. There isn't a version for Macs, but some run a simulated version of DOS which can be used. It may also work with a program called Boot Camp

Apply for a GST #
You will need a goods and services (GST) # in order to bill for GST. You are not required to bill for GST until you are making $30,000 in your business. In order to maintain consistency, you may want to register before you make this amount of money, so that you do not suddenly start charging GST. Canada Revenue Agency provides directions on how to register for a GST number. It can be done quickly and easily online, and it’s free.

Set up an account with Canada Revenue Agency/IRS for withholding tax if you have employees
As a Canadian employer, trustee, or payer, you are responsible for deducting Canada Pension Plan (CPP) contributions, employment insurance (EI) premiums and income tax from remuneration or other types of income you pay, remitting them to the CRA and reporting them on the applicable slips. You should refer to the Employers' Guide - Payroll Deductions and Remittances, available online.

Your bookkeeper should also be able to handle this for you.

Set up account with province/state for sales tax
Ontario residents can refer to the Ministry of Revenue. Your services are not subject to RST (retail sales tax) in Ontario, but any supplements you sell are. Also, if you purchase an existing business you are subject to RST on the value you paid for all tangible assets such as examination tables and computers. The value of the business “goodwill” that you purchase is not subject to RST.

Interview banks
Now you are ready to take your business plan to the bank. Remember, you are the customer and choose the bank that can give you the best service at the best price.