November 17, 2008

Canada Pension Plan Changes for 2009

The Canada Revenue Agency announced on Nov. 3, 2008 that the maximum pensionable earnings under the Canada Pension Plan (CPP) for 2009 will be $46,300-up from $44,900 in 2008. The new maximum pensionable earnings amount was calculated according to a CPP legislated formula that takes into account the growth in average weekly wages and salaries in Canada.

Contributors who will earn more than $46,300 in 2009 will not be required or permitted to make additional contributions to the CPP. The basic exemption amount for 2009 remains $3,500. Individuals who earn less than that amount do not need to contribute to the CPP.

The employee and employer contribution rates for 2009 will remain unchanged at 4.95%, and the self- employed contribution rate will remain unchanged at 9.9%.

The maximum employer and employee contribution to the plan for 2009 will be $2,118.60, and the maximum self-employed contribution will be $4,237.20. The maximums in 2008 were $2,049.30 and $4,098.60.

AT THE WATERCOOLER

How To Tell Which Customers Will Pay

When the economy slows, there are ways to help you, your clients or company avoid losses. Here are some useful tips:

A credit research study found the following indicators of which customers or prospects are likeliest to pay:

• The most powerful predictor of payment performance is payment record (current and past).
• Credit ratings based on financial strength have no bearing on future payment performance.
• Revenue is not a good indication of good payment performance.
• The greater the firm's net worth (total assets less liabilities) and time in business, the likelier it is to pay. Building real net worth takes years.
• Most businesses fail in the early years, so the longer a firm is in business, the more confident you can be of receiving timely payments.
• The higher the percentage of accounts a customer has paid within 90 days, the greater the likelihood you will receive prompt payment.
• A predictor of future poor payment is the number of accounts past due 90 or more days.

4 Quick and Easy Tools To Build Customer Loyalty

Some top experts in marketing and sales say that customer loyalty is dead - that people aren't willing to commit to a particular business anymore.

I personally think that's a load of BS. Loyalty can absolutely be created - but only if you make enough of an effort to create it in the first place. As soon as your customer sees that you care about him, he will go out of his way to do business with you month after month, year after year.

So how do you build a solid relationship? Well, today I will share with you four quick and easy tools to start building solid relationships with your clientele.

Tool #1: Thank you cards
Dale Carnegie said that appreciation is one of man's most foundational needs - and the one that's the least fulfilled. That's why small acts of appreciation like saying thank you for a sale is so immensely powerful.

For full effect, don't just send an e-mail. Handwritten notes on a good quality paper using a fine fountain tip pen makes a great impression. If the transactional value is high enough, spring for a small gift as well.

Tool #2: Newsletters
Very powerful, if only people would use them. Newsletters are your first line of defense in your relationship building efforts. They are extremely versatile - serving as a customer retention, referral creation, and sales generation tool.

The key to a good newsletter is to create a special balance of the "salesy" content, informative articles and education about your industry or business, as well as a good mix of general lighthearted news. If you'd like to see an example of a newsletter that sells, write an e-mail to us at info@nobsinvancouver.com - attention Andrea. We'll send one over.

Tool #3: Birthday cards
People love to be recognized on their birthday (even if they don't like to be reminded of their age). Perhaps it goes back to when they were kids with the birthday parties, the cake, the presents and all that.

It's an opportunity to do something nice for them - and move your relationship many steps forward at the same time.

Tool #4: The "satisfaction" phone call
Horribly underused, most people get on the phone only when they want something - not when they want to give something. You can be different. Get into the practice of constantly following up with a friendly "satisfaction" phone call after a sale. Your customers will really appreciate the opportunity to express their opinion.

Implement these tools in your business and you too could soon be enjoying more responsive, more loyal customers.

Brandon Roe is a highly-paid consultant that specializes in helping small and medium-size business owners get more bang for their marketing buck, especially in difficult economic times. Visit his web site to receive a free special report entitled, How To Double Your Profits In 90 Days or Less. It's available at www.brandonroe.com.

The IPBC News Desk

Tip of the Week

More services to simplify business taxes

Did you know...

That you now have additional options to help manage business taxes through Canada Revenue Agency's My Business Account service?

Business owners can now use this secure online service to: check the status of goods and services tax/harmonized sales tax (GST/HST)* returns and see when Notices of Assessment were issued; and access a variety of business tax information and services, including account balances and activities.

Started in November 2008, you can transfer payments and credits within a GST/HST,* corporation income tax, or other levies account. This service allows you to transfer amounts not yet applied to an assessed period and view the results immediately, including updated interest amounts and account balances.

If the amount you wish to transfer has already been applied to an assessed period, you can request a transfer through CRA's 'Make online requests' service in My Business Account.

Business owners can authorize their employees and bookkeepers to view or change their tax information online. Once authorized, the employees and representatives would access the services through Represent a client at www.cra.gc.ca/representatives.

For information on the full range of services available, go to www.cra.gc.ca/mybusinessaccount.

*Except for GST accounts administered by Revenu Québec.

From The Executive Director's Desk

Imagine networking with some of the top bookkeepers in the country. Imagine the chance to be on the fast track to a more lucrative practice . . . to being a certified professional bookkeeper (CPB) . . . and to receiving greater professional recognition inside and outside of this network. Regional Meetings are a vital part of that formula for success. They're a unique chance to combine learning - a guest speaker shares expertise that's sure to make your work a bit easier - with fun and powerful networking. Here are the details for the next meetings:

UPCOMING MEETINGS

Coquitlam, BC
Thursday, November 20th at 5.45 pm
ABC Family Restaurant, 100 Schoolhouse St. (near IKEA)
Guest Speakers: David Paradis and Mona Sidhu,
Canada Revenue Agency
Speaker's Topic: Audits and Third Party Penalties

Edmonton, AB
Tuesday, November 25th at 6.30 pm
Grant Thornton LLP #1401, Scotia Place Tower 2
10060 Jasper Avenue NW
Guest Speakers: Joyce Booker, CMA, and Grant Thornton
Speaker's Topic: What an accountant needs from a bookkeeper.

Regional meetings will start soon in Ottawa, Halifax and Windsor. If you are interested in facilitating a meeting in your area, please email info@ipbc.ca for an information package. Please include your full contact details.

Do you have a website?

If you are an IPBC member, you should proudly be displaying the IPBC logo along with a link, so your visitor can learn a little about your professional association. Membership in IPBC gives you an edge over your competition.

The purpose of the IPBC newsletter is to assist Canadian bookkeepers with tools, ideas, and resources to make your business efforts easier, and to help your business grow by delivering timely and thoughtful information. Do you have a story to share? Words of wisdom. Pass them along to us. Email to: donna@ipbc.ca