RRSPs and Tax Season

Welcome to 2017 and the start of a whole new year.  Hopefully 2016 met with all your expectations.  At Fiscal Performance we are gearing up for the year to come and the season that is now upon us.  One major item of business for us is to expedite T4s to all of the clients that we take care of payroll for.  Speaking of which, at this time of year many people start to think about the personal tax season ahead and how to best manage it.  For a long time now, the prudent use of RRSPs has been one way to optimize your tax situation.

To put it in simplest terms, an RRSP or Registered Retirement Savings Plan is a legitimate way for Canadians to park money that they have earned during the year into an account that shelters it from government taxation.  The taxation doesn’t occur until it is withdrawn some time down the road.  The idea is that the money stays put in the account during higher earning years and isn’t taxed until retirement when, presumably, earned income is a whole lot less.  This money is now taxed at a lower rate as a result of the lower overall income that most people would realize when they are no longer in the mainstream workforce.

Some people think that the purpose of an RRSP is to eliminate taxes owing in a given year altogether.  This is wishful thinking.  In almost all cases, the money put into an RRSP will help to reduce taxes owing – not eliminate them.  There are limits on the amount that can be deposited into such an account each year.  Your best bet is to check with your personal tax specialist to see what can be done and the limits involved.  Keep in mind that RRSP’s are only one of the tax strategies your tax specialist can use to minimize your taxes owing.  The ultimate goal is to pay the least amount legitimately owed to government.

Besides the tax advantages, another purpose of an RRSP is to help build and have enough money to retire on.  It is, and should be, a part of your savings and retirement strategy as you go forward from year to year.  This is financial planning and it is something we should all be considering and acting on.

Prudent use of an RRSP is one way to build a nest egg for a happy and comfortable retirement.  Understanding what it is all about is a good first step to putting this process in place.

Happy 2017!

Tracy

Unique

Client Service Manager

Behind every well-run business is a bookkeeper who truly cares, and Unique brings that care to every set of books she manages. With over five years of experience across bookkeeping, accounting and taxes, she is skilled at keeping finances organized and streamlined with business owners in mind. Recognized for her attention to detail, clear communication, and calm problem-solving approach, Unique believes great bookkeeping is about more than balancing the books. It is about building trust, maintaining consistency, and supporting clients every step of the way. When she is not focused on finances, you will often find her enjoying a good movie, hanging out with family and friends or relaxing with music.

Vaidehi

Bookkeeper

Meet Vaidehi, a dedicated and professional Bookkeeper since 2021, who proudly supports and assists her clients. Her efficiency and expertise shines through her seamless handling of her clients’ financial records including Accounts Receivable, Accounts Payable, Bank Reconciliation and client communication. Trust Vaidehi to provide the support and solutions you need. During her personal time, Vaidehi enjoys dancing, cooking and tending to her garden.

Tinna

Bookkeeper

Introducing Tinna, a resourceful and dynamic Bookkeeper with over 12 years of hands-on experience. An expert in all aspects of accounting and finance operations, she handles preparation and maintenance of statutory accounting books, reconciling revenue and expenditure accounts, overseeing the preparation of monthly, quarterly, bi-annual and year-end financial statements, implementing stellar accounting systems and controls, budgeting and financial projections. Tinna’s solid background in managing both financial and non-financial assets, investigating and auditing accounts, makes her an asset to the Fiscal Performance team.

Olusegun

Client Service Manager

If you’re seeking a bookkeeper with a passion for precision, a friendly demeanor, and a love for the beautiful game of soccer, then look no further than Olusegun. With over 10 years of experience with auditing and financial analysis, Olusegun brings a unique blend of expertise and enthusiasm to the table. Known for his approachable demeanor and willingness to go the extra mile, he’s not just your typical accountant – he’s a trusted ally in your company’s full cycle financial management. So, if you’re in need of a bookkeeper (with auditing know-how) who gets the job done, valuing integrity and reliability as part of every job, Olusegun is your go-to guy!

Tracy Khamis

RWM, CPB, DFA – Bookkeeping Services Specialist™

Managing Director

Always wanting to learn and gain knowledge, Tracy has worked for multiple companies from various industries. Having the opportunity to work in varied industries from small companies to large organizations such as banks, accounting firms, schools, restaurants, construction, manufacturing and the arts has been extremely exciting. Each industry has different rules that apply, along with different government requirements. This experience has provided Tracy with extensive growth and understanding of bookkeeping, multiple software platforms, and in-depth financial report preparation. To know Tracy is to appreciate what she can do to put your books in order and keep them in a timely, relevant and professional manner.

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