By Helen Xenedis

Fit is important. Not just for clothing, but for services or products you use every day.

Consider – would you look for a fine rosewood dining suite at the local big box store? Would you expect a Georgian bookcase from your favourite boutique to perform well as garage storage for skis and winter tires? And how about asking the corner lube-shop mechanic to fine-tune your vintage Jaguar?

It is important that products suit your needs, and that you have the right supplier for them.

And less tangible things – including financial products like your home insurance - must fit as well. 

Not all policies, or Insurers, are the same.   Dozens of companies offer homeowners coverage, most with several variations.  A few specialize in protecting luxury homes, and hire underwriters and claims personnel specifically experienced with these properties. Each policy, however, has different features which may or may not appeal to you.

Knowing the differences exist, the challenge is finding the right Insurer for your particular needs.   

And while it is often true that you get what you pay for, the best fit doesn’t always have to cost more.

The best way to start is to consult your broker.  As professional advisors, brokers work for you – not for Insurers – to help you evaluate the available options and make informed choices.  Some are specialists as well. Selecting a broker who understands your lifestyle gives you access to the experience and information most relevant to you, and helps ensure that your insurance fits.

Helen Xenidis is an insurance broker with FCA. FCA has the leading program in Canada for trustees and receivers and a substantial cross border practice for companies that have a presence in Canada and the US. For more information on Helen`s practice, please continue to FCA`s website.  

by Shawn Rosenzweig

As an entrepreneur, you have a lot on your plate – handling employee issues, growing your customer base, managing the operations, sourcing suppliers, and so on.

You might have a capable management team in place to help carry the load, but they may not be in a position to help you strategize and plan for the future of your company. You need someone who can challenge your thinking, provide constructive advice, and keep you focused on implementation. Who should you turn to?

Your accountant.

We can all picture in our minds a stereotypical accountant – the introverted, socially awkward type with a pocket protector and calculator in hand. But a new type of chartered accountant is making an appearance on the Canadian business scene. And, although they may still be the exception, rather than the norm, they are worth their weight in gold.

In essence, your accountant should become your most trusted business advisor – and below are three things that you should expect from the relationship:

1. Proactive, regular communication and contact.

Accountants traditionally meet with their corporate clients only once or twice a year – during tax season and at fiscal yearend. This is simply not good enough. As a business owner, you must make strategic and financial decisions year-round. Your accountant should be plugged into what is happening in your business at all times; otherwise, opportunities may be lost forever.

2. More than just number-crunching.

Financial statements and corporate tax returns should be the absolute minimum in terms of what your accountant delivers. By virtue of understanding the numbers, a good accountant is well-positioned to recommend strategies for improving the bottom line, saving taxes, identifying and filing for special tax credits, and protecting and growing your assets.

3. Guidance for managing and eventually exiting the business.

Good accountants believe their task is to help businesses go from good to great; to help clients lead and manage, rather than just operate the business. Your accountant should be able to help you plan your future exit (the earlier you plan, the better) and implement strategies to help you maximize the value of your company when you are ready to sell or transfer it.

I often hear business owners say that it can be lonely at the top, and indeed, without the right advisors in place, it often is. But if you surround yourself with service providers who truly understand your business and have your best interests in mind, you will be well-positioned to succeed.

At SBLR, we're not your average bean counters. We meet proactively with our entrepreneurial clients on a quarterly basis to employ high-impact strategies for saving thousands of dollars in tax. We help our clients uncover opportunities such as multiplying the capital gains exemption, income splitting with family members and R&D tax credits so they can keep more of their hard-earned money in their pockets.

By Helen Xenidis 

There’s something about talking insurance that sends people running for the hills, but insurance needn’t be a complicated conversation!

And thank for goodness for that because it’s the one conversation that every business owner needs to have. I’ve answered the four most frequently asked questions about insurance to help you navigate the not-so-scary world of protecting your family and your business.

What’s the difference between brokers and agents?

An insurance agent represents the insurance company they work for, examples being Allstate, Co-operators, Belair, and TD etc…

When you call an agent, they work directly for the insurance company and act on their behalf NOT yours. At FCA we’re not agents, we’re brokers.  We have contracts with dozens of insurance companies and we act on YOUR behalf.

So when you call me to discuss your insurance needs, remember I work for you.  I gather all the information I can to help get the best quotes.

The most important thing to remember is that as an insurance broker I represent you NOT the insurance company.

What’s the difference between general insurance and life insurance?

These two types of insurance are two completely different animals.

General insurance covers all the things you own.

Think about your home, your car and your business. I can provide legal liability insurance to you personally, or professionally.

When it comes time to insure yourself physically, think:  your life, disability, critical illness or when you want to meet with a financial planner, that’s an entirely different kind of insurance and I’d be happy to refer you on! 

How is a high net worth client different from any other client?  

High net worth clients still need to purchase property insurance, home, tenant’s or condo and car insurance, but their homes generally start with a rebuilding cost of over $750,000.

High net worth individuals often have “collections” jewellery, art or wine being the norm.  For example I have a client with $100,000 collection of war medals and another with a $300,000 coin collection.

Most policies have limits of coverage on certain items which is often not an issue for us “average” people (!)  but these are things must be covered if you’re one of our wealthier clients. 

Finally, high net worth clients frequently own properties out of province or out of Canada that have to be insured.  One of my clients built a $1,000,000 summer home outside of Ontario recently.   Rather than having to find someone to deal with in that province, he called me and I arranged the insurance on his new property.  I offer my clients the convenience of only having to deal with one broker when possible.

What kind of commercial insurance do I need to protect my business?

Even the independent business owner who works from home should have a commercial insurance policy. 

There seems to be some misconception out there that your home insurance will cover you if you have a loss. NOT TRUE. 

The average homeowners policy might offer a small amount of coverage for your business property, (maybe) and the same amount or lower for your property “off premises”, but your personal homeowners policy does not provide you with commercial general liability insurance for property damage or bodily injury to any clients you may have in your home.

A small office package can be purchased for approximately $1,000 - $1,200 per year and most importantly it will give you commercial general liability coverage.

Business Interruption is also very important to a business owner.  Think of it as lost profits coverage.

Consider how you make your living. Now consider what happens if there’s a fire, water damage or an explosion…something that brings your business to a screeching halt?

What then? 

How will you get paid? 

For example, a printer has a fire and the building is badly damaged. He’s out of his location for six months.  The profits he would have made in that time are insured if he has business interruption coverage. 

Professional Liability otherwise known as Errors and Omissions coverage, is equally important!

Errors and Omissions coverage protects you from any “professional errors you might make OR HAVE BEEN ACCUSED OF MAKING. 

E&O insurance will payout if you make an error but the bigger thing is that it will pay your defense costs if you are accused of making an error. Remember that it doesn’t matter what you “waive” in your contract, it is not going to stop someone from trying to sue you!

I hope this has given you a better idea of what I can do for you or your clients as your insurance broker.

Helen Xenidis is an insurance broker with FCA. FCA has the leading program in Canada for trustees and receivers and a substantial cross border practice for companies that have a presence in Canada and the US. For more information on Helen`s practice, please continue to FCA`s website. 

by Shawn Rosenzweig, CA

I’d like to spread the word about one of Ontario’s best-kept tax secrets: 

Ontario's transitional tax credit.

Many corporations have already taken advantage of Ontario’s Scientific Research &Experimental Development (SR&ED) program, but, there is an added bonus of this program that is often overlooked. 

Companies that have filed a SR&ED claim in 2008 may now be eligible to receive an additional Ontario refund known as a ‘Transitional Credit.’ This credit became available to companies as a result of the harmonization between the Ontario and Federal corporate tax returns in 2009, yet most companies are unaware that they may be eligible.

 SBLR has been very active in helping our clients file for this one-time tax credit.  In fact, we’ve helped a number of our clients receive refunds – that can be applied, dollar for dollar against taxes payable - ranging from $10,000 up to $150,000.  As an additional benefit, Ontario allows companies to adjust corporate tax returns up to four years after filing, so it’s not too late to obtain the transitional tax credit for your company, as well.

There are four criteria companies must meet in order to maximize the refund for this one-time transitional credit:

• A SR&ED claim filed in 2008
• Investment Tax Credits (ITCs) earned in 2008 or previous years
• Ontario taxes paid in 2009-2010
• Expectations of profitability in the next three years

This transitional tax credit is a hidden asset for many companies that can add significantly to cash flow.I have consulted with many new clients who simply werenot aware that they were eligible for this credit, which can mean up to a six-figure refund for their company. Now’s the time to inquire; you may be pleasantly surprised to discover that the transitional credit is available to you, as well.

About SBLR LLP Chartered Accountants (SBLR):

With eight partners and a support team of over forty people, SBLR provideshigh-impact strategic tax planning, business advisory and assuranceaccounting services to small- and mid-sized privately owned companies.SBLR's approach to servicing clients is based onproactive communications, analysis and no-nonsense strategic advice toassist them in reaching their full potential as entrepreneurs.

For more information on Shawn Rosenzweig, please continue to the SBLR website.