Expert Q&A

When you trade one cryptocurrency for another type of cryptocurrency, the CRA considers this a barter transaction. Since the value of the cryptocurrency has increased, any capital gains will be realized on the date you sold it.If you are the one who traded cryptocurrencies for another type of cryptocurrency and sold that one for more than what you paid, then you most likely owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are not deductible on your tax return like income losses.

When you sell a cryptocurrency for more than what you paid, the difference is considered a capital gain. If you sell for less, then this difference is considered a capital loss.If you are the one who has sold a cryptocurrency for more than what you paid, then you owe taxes on this capital gain. If you are the one who paid less, then this is considered a capital loss. Capital losses are deductible against other capital gains.

Yes because a Cloud accounting software automatically syncs with your bank account, so you have an up-to-date view of your financial picture. You will never have to enter any data manually, and if you make changes on your bank account, the software updates automatically. Near-real time financials available at your fingertips, anywhere you are.

Cloud based bookkeeping software can be very beneficial for small businesses. It is easier and faster to set up than traditional bookkeeping software, and often requires less training. Additionally, it can sync with multiple devices so staff members can monitor the transactions from any computer or smartphone. Cloud based bookkeeping software allows for quick billing and payment processing, as well as a way to automate things like tax returns or inventory management in order to save time on manual procedures.

Accounting software in Canada comes under the “computerized data processing system” definition. This means that, as a Canadian private company, you must comply with the Personal Information Protection and Electronic Documents Act (PIPEDA).An accounting software must show that your system will comply with the legislation set out above by offering you reasonable assurances that it will do so – no matter what your IT environment. This is also known as the “reasonable expectation” test.

The reconciliation process is the task that a company performs to check the accuracy of their books with their accounts. The accounting software and bank statements are reconciled by comparing the balances for each account to make sure they are correct. After comparing, discrepancies can be found which may be due to transactions that have not posted on the account yet. Differences between accounting software and bank statements will also need to be addressed through adjusting entries or reclassifying transactions in order to ensure accurate records after making adjustments or corrections.

Small business accounting software has made it easier for small businesses to stay on top of their finances. Previously, these companies would have had to hire additional staff to be responsible for financial tasks and would have had to deal with the added expense. Nowadays, all you need is a stellar knowledge of how computer programs work and you will be able to seamlessly integrate your financial system into a cloud-based system with ease.

All the data used by your cloud bookkeeping software is stored in a different Web server or network for backup purposes.Your data will be uploaded to a different physical server or network as a backup in case of an issue with any of the servers on which you currently store your data. In most cases, this gives you an additional layer of protection against data loss.