Barter transactions may have income tax and HST implications!

Do you trade goods or services which you would normally sell in the course of your businessIf a transaction would have tax implications if money changes hands, it will have the same tax implications if it is a barter transaction.  These transactions may result in taxable income or tax-deductible expenses.  They may be considered dispositions of capital property, eligible capital property, personal-use property, listed personal property, or inventory, each of which has a different tax treatment.

A barter transaction occurs when two people or entities agree to trade goods or services without any money changing hands.  When this occurs between people dealing with each other at arm's length, the value of the goods or services is deemed to be the value that would have been obtained for those goods or services in a regular cash transaction.

When a person provides bartered goods or services which would normally be sold by him in the course of his business or profession, the value of those services must be included in income.  If the person is a GST registrant, then GST would have to be remitted on the income.  The value of the bartered services is included in income when determining if the person has reached the threshold of income where he must become a GST registrant.

When a person receives bartered goods or services which would normally be purchased in the course of his business or profession, the value of those services can be claimed as costs to the business.  If the person is a GST registrant, then an input tax credit could be claimed, if the provider of the goods or services is a GST registrant.

We manage your record keeping while you manage your business!

Every year, Cope, Barrett & co, Certified General Accountants provide effective and efficient tax and bookkeeping solutions to small businesses across Hastings and Prince-Edward County - but our commitment doesn't stop there. We also offer a wide range of small business bookkeeping services, all delivered by experienced small business accounting, bookkeeping and tax preparation specialists and certified accountants.

Paperwork often gets in the way of managing and expanding your business. With Cope, Barrett & co, Certified General Accountants, you can leave that paperwork to one of our tax accountants... and focus on what's really important. We'll take care of all your small business bookkeeping, accounting and tax needs, such as:

• Payroll
• GST remittance
• QuickBooks or Simply data entry and reporting
• Financial statements
• Year-end T4, T3, T5 and T5018 reporting and summary 
• Small business tax reporting
• Rental income tax reporting
• Farm income tax reporting
• Personal tax returns

We provide bookkeeping and accounting services that are:

Affordable
Cope, Barrett & co, Certified General Accountants small business bookkeeping and accounting services are very reasonably priced. Contact the office nearest you for an estimate - Bancroft (613-332-2150), Belleville (613-962-2157) or Picton (613-476-2150).

Reliable
For over 100 years, Canadians have trusted Certified General Accountants for income tax preparation and to complete their financial statements.

Convenient
Cope, Barrett & co, Certified General Accountants offices are conveniently located and offer one-stop shopping for all of your small business bookkeeping, accounting and tax needs.

Available Year-round
Our business offices are open to serve your tax and accounting services needs any time of year.
Drop in to discuss your small business bookkeeping and accounting needs, or income tax preparation requirements.

QuickBooks, HST, payroll and recordkeeping support

Often business owners buy and accounting software program and find they don't know how or where to begin.  The software may get used a little, but not to the capacity available.  As a business owner it is important to have control of your financial information and situation - to monitor cash flow, determine return on investment, pricing of products and so on. 
That is where we can help.  We provide training and company setup including opening balances and chart of accounts in your QuickBooks or Simply Accounting software program.  We can help with data entry, bank reconciliations, tax compliance reporting such as payroll or HST and keep you on top of your financial reporting.
Often we meet business owners who are in a terrible mess - no bookkeeping has been done, and Canada Revenue is mailing or phoning to demand they file payroll, HST or income tax.  We see the end results in late filing penalties, large interest fines etc.  It becomes so apparent then that it would have been much less stress and less overall expense to have kept on top of the record keeping from the start.
Call us - let us help get and keep you organized!  613-962-2151