Welcome to Element, where financial excellence meets unwavering commitment.

At Element, we are dedicated to transforming your financial challenges into opportunities for growth and prosperity. With a rich legacy of expertise and a forward-thinking approach, we offer a comprehensive suite of accounting services tailored to meet the unique needs of businesses and individuals alike.

What sets us apart? Our passion for precision and a deep-seated belief that financial clarity is the cornerstone of success. We understand that navigating the complexities of finance and taxation can be daunting. That’s where we come in.

Our team of seasoned professionals combines decades of experience with cutting-edge industry knowledge. We do more than just crunch numbers; we provide strategic insights that empower you to make informed decisions, optimize your financial performance, and secure a stable future.

Bookkeeping

Bookkeeping refers to the process of recording, organizing, and maintaining financial transactions and records of a business. It involves systematically recording all financial activities, such as sales, purchases, receipts, and payments, in a structured manner.

The primary purpose of bookkeeping is to keep track of the financial health of a business and provide accurate and up-to-date information about its financial activities. It ensures that all financial transactions are properly recorded and classified, which is crucial for generating financial statements to make business decisions and to file income taxes. The quality of your financial statements begins with quality bookkeeping that is completed on a regular and timely basis. Not only does quality bookkeeping improve your financial information, it reduces the cost of the accounting resulting from less time spent fixing the records to complete the financial statements and income tax returns.

Quality bookkeeping involves various tasks, including:

  • Recording transactions: Bookkeepers record all financial transactions in a general ledger, typically using either manual methods or accounting software. Transactions include sales, purchases, expenses, and payments.
  • Classifying transactions: Bookkeepers categorize transactions into different accounts, such as revenue, expenses, assets, liabilities, and equity. This classification enables better tracking and analysis of financial activities.
  • Reconciling accounts: Bookkeepers reconcile accounts by comparing financial records with supporting documents, such as bank statements, invoices, and receipts. This process ensures accuracy and identifies any discrepancies or errors.
  • Generating financial statements: Based on the recorded transactions and reconciled accounts, bookkeepers prepare financial statements, including the balance sheet, income statement, and cash flow statement. These statements provide an overview of the company’s financial position, performance, and cash flow.
  • Monitoring financial records: Bookkeepers regularly review financial records to identify trends, anomalies, and potential issues. This helps business owners and managers make informed decisions, manage cash flow, and evaluate the profitability of the business.

While bookkeeping focuses on accurately recording and organizing financial transactions, it should not be confused with accounting. Accounting involves a broader set of activities, including interpreting financial data, analyzing performance, and providing financial insights to support decision-making. Bookkeeping serves as the foundation for accounting by providing the necessary data for financial analysis and reporting.

How can we help?

We will discuss with you to determine what your needs are. For example will you need monthly, quarterly or annually reporting? From there we will develop a reporting plan with you. We will then set up your system so everything becomes electronic. Any invoices from vendors that can be electronically sent to us will be completed automatically and any other invoices you receive can be scanned or a picture taken and emailed to us. All your bank statements and credit card statements can be linked directly to your accounting software. It is that simple.
In addition to bookkeeping, we can file all on your behalf the following items:

  • T5 slips and summary
  • T4 slips and summary
  • T5018 subcontractor slips
  • GST returns (annually, quarterly or monthly)
  • Annual return with the corporate registry
  • Workers’ Compensation Board reporting
  • Payroll calculation
  • Payroll remittances

Our services strive to relieve you with the administrative burden of operating your company so you can do what you do best, run your company.

Public Company Reporting

Being a public company requires a regular reporting, being annual and quarterly financial statements and management discussion and analysis. The consequences of late filings can be significant and costly. The preparation of financial statements, audit assistance, and being a CFO of a public company requires time and commitment to get it completed.

The services we can provide to public companies:

  • Preparation of the monthly accounting;
  • Preparation of annual and quarterly financial statements and management discussions and analysis;
  • Selecting accounting policies;
  • Preparation of auditor package which includes general ledger, subledgers, and reconciliations of the accounting and supporting documents for the notes to the financial statements;
  • Assistance with the auditor to ensure the audit is completed in a timely manner;
  • Selection of an auditor if one has not already been selected;
  • Preparation of material change reports;
  • Preparation of news releases;
  • Filing on SEDAR of the required documents; and
  • Board reporting packages.

Payroll

From one employee to multiple, we can help prepare your Company’s payroll and provide employee paystubs on a regular basis. Once the initial payroll is set up, all of the requirements is to provide the hourly employees hours for the pay period. From there we will calculate the withholdings and the net pay to the employee. On a monthly basis, we will provide you with the payroll remittance.

In addition, on an annual basis, we will prepare the required T4 slips and summary and file with the CRA.

There are several reasons why you should outsource your payroll:

  • Expertise and Accuracy: Accountants are trained professionals with a strong understanding of financial regulations, tax laws, and payroll processes. They have the knowledge and skills to accurately calculate employee wages, deductions, and tax withholdings, ensuring compliance with relevant laws and regulations.
  • Time and Efficiency: Payroll can be a time-consuming task, especially for businesses with a large number of employees. By outsourcing payroll to an accountant, you can save time and focus on other essential aspects of your business operations. Accountants are experienced in handling payroll efficiently and can streamline the process, reducing the chances of errors or delays.
  • Compliance with Tax Regulations: Tax laws and regulations related to payroll are often complex and subject to change. Accountants stay updated with the latest tax rules and ensure that your payroll processes align with legal requirements. They can assist in filing payroll tax returns, making accurate deductions, and meeting deadlines to avoid penalties or legal issues.
  • Confidentiality and Data Security: Payroll involves sensitive and confidential information, such as employee salaries, social security numbers, and bank account details. Accountants are trained to handle this information securely, minimizing the risk of data breaches or unauthorized access. They can implement measures to protect payroll data and maintain confidentiality.
  • Reporting and Analysis: In addition to calculating employee wages, accountants can provide valuable insights through payroll reporting and analysis. They can generate comprehensive reports that help you understand labor costs, track trends, and make informed decisions about staffing, budgeting, and financial planning.
  • Troubleshooting and Issue Resolution: Payroll-related issues can arise from time to time, such as incorrect calculations, discrepancies, or questions from employees. Accountants are well-equipped to troubleshoot these problems, resolve discrepancies, and address employee concerns promptly and accurately.
  • While an accountant can handle your payroll effectively, it’s important to note that specific circumstances may vary. Some businesses may choose to use specialized payroll software or outsourcing services to manage their payroll needs. It’s crucial to assess your business requirements and consult with an accountant to determine the most suitable approach for your organization.

Financial Statements

In Canada, there are three types of accountant’s opinions; Audit, Review, and Compilation Engagement. Each opinion is used in different circumstances and may not be required for your company. Audits and reviews are generally used when required by a third party. With private enterprises, these are generally required by banks or bonding companies. If there is no requirement for an audit or a review, a compilation engagement is all that is needed for the completion of the year end financial statements.

Review opinions are a limited amount of assurance that the financial statements appear to be fairly presented. These opinions are generally required under a banking agreement or when you are considering selling your business and the purchasers financing requires the financial statements are reviewed.

In completing a review, an accountant will preform analytical analysis comparing current year balances to prior years and ratio’s within the current year to obtain an understanding of the financial statements. In addition, the accountant will inquire with management on variances and ratio’s to understand them and evaluate the explanations to ensure they are consistent with the business and expectations.

Compilation engagements are mainly used for most small businesses. Under the rules of preparation, CSRS 4200, an accountant is not required to verify to test the accuracy of the information that is provided. As this means, the business owner are responsible for providing accurate financial information as this is the basis of the engagement and income tax return.

In completing the Compilation engagement, we perform the following tasks:

  • Compare the bank statement with the bank reconciliation or general ledger account;
  • Obtain a copy of the accounts receivable subledger and inquire if the amounts are collectible and agree with the general ledger account;
  • Obtain a listing of the prepaid expenses and ensure the amount is calculated properly;
  • Obtain a listing property and equipment, ensure the additions and disposals are properly recorded and ensure depreciation is calculated appropriately. This includes the review of repairs and maintenance to ensure proper capitalization;
  • Obtain investment statements and ensure investment income and transactions are recorded;
  • Obtain a listing of accounts payable and inquire if all amounts are still outstanding;
  • Obtain loan statements and agree balances to the general ledger;
  • Reconcile all CRA accounts with the general ledger; and
  • Compare the revenue and expense accounts with the prior year to see if there are any variances or missed items.

The high investment at the beginning results in higher quality information that is provided and allows for easier response to any queries from the CRA.

An audit is the highest level of accountant’s opinion that state the financial statements are free of material misstatements. These are generally performed on public companies or when a bank loan requires audited financial statements. Generally, audits are not required for private enterprises or smaller businesses.

In completing an audit, an accountant will obtain third party evidence to support the balance sheet, income statement, and statements of cashflows. These include invoices, agreements, and sending out confirmations to customers and suppliers.

Fractional Chief Financial Officer

Quite often a small business is not yet big enough to hire a costly Chief Financial Officer. This is where a fractional or part-time CFO can assist.

In addition to taking oversight of the bookkeeping and payroll, we can assist in the following:

  • Preparation of monthly financial statements;
  • Preparation of monthly AR and AP subledgers;
  • Preparation of monthly cash flow statement;
  • Preparation of budgets and performance ratios;
  • Assist with bank arrangements;
  • Analysis of the financial information to make better more informed decisions;

Hiring a fractional CFO can be beneficial for several reasons:

  • Cost savings: Hiring a full-time CFO can be expensive, especially for small and medium-sized businesses. By hiring a part-time CFO, you can access their expertise and financial guidance at a fraction of the cost of a full-time executive.
  • Flexibility: Part-time CFOs offer flexibility in terms of working hours and duration of engagement. You can tailor their involvement based on your business needs, whether it’s a few hours per week, a few days per month, or during critical financial periods such as budgeting or fundraising.
  • Specialized expertise: CFOs possess specialized financial knowledge and skills that can help your business make informed decisions. Part-time CFOs often have extensive experience in financial management, strategy, budgeting, forecasting, and risk management. They can provide valuable insights and guidance to improve your company’s financial performance.
  • Strategic guidance: A part-time CFO can assist with strategic financial planning and help align your financial goals with your overall business objectives. They can analyze financial data, identify trends, and develop strategies to optimize cash flow, reduce costs, and improve profitability. Their expertise can be particularly valuable during periods of growth, expansion, or restructuring.
  • Interim support: If your business is going through a transition phase, such as a leadership change or a major financial project, a part-time CFO can provide temporary support until a permanent solution is found. They can maintain financial stability, manage critical financial tasks, and ensure continuity during the transition.
  • Interim support: If your business is going through a transition phase, such as a leadership change or a major financial project, a part-time CFO can provide temporary support until a permanent solution is found. They can maintain financial stability, manage critical financial tasks, and ensure continuity during the transition.

“In the world of finance, the best accountants are the sculptors of economic success.”

– Richard Turner

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