IPBC's Topics and Tips Newsletter 'Dear TaxDetective®' is now a monthly column that answers burning questions about accounting and tax. Remember Dear Ann... well now's your chance, ask Dear TaxDetective a tough question. Send your questions to info@ipbc.ca

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Dear TaxDetective®

Copyright 2009 Eileen Reppenhagen

Dear TaxDetective

How do you account for website development for tax purposes?

Given that the Income Tax Act follows what is set out in the CICA Handbook, looking to the CICA Handbook you will find the Emerging Issues Committee issued an Abstract of Issue Discussed on February 14, 2001.

EIC-118 Accounting for costs incurred to develop a web site provides guidance and highlights are summarized below.

This abstract does not apply to website software to be sold, leased, or otherwise marked as a separate product or part of a product or service.

For websites used to promote or advertise products or services, or to replace manual processes or services, sell products or services or to do a combination of all three, you must look at the stages of web site construction.

1. Planning - costs are expensed as incurred

2. Hardware and software costs are capitalized, web hosting is expensed over period of benefit

3. Graphics development, look, and feel costs should be capitalized initially, then expensed unless there is a betterment, which would be capitalized

4. Content development- costs are expensed as incurred, costs to create or acquire content may require further discussion

5. Operations are usually expensed if maintenance and consideration given to betterment where costs can be isolated and identified as such

Review CICA Handbook EIC-118 for more details available including an expanded listing of functions under each section in the Appendix to the EIC

This interpretation is not applicable to entitles who have adopted S. 3064 Goodwill and Intangible Assets section and application was to be prospective.

CRA also issued Document number 2000-0004995 on May 15, 2000 discussing the tax treatment of website development costs and refers to 2000-001714 and 9818577 and analogy in an article published in Tax Notes.

Their position was that there must be a breakdown on components of the fees and classification must depend on their nature. There is discussion about degree of sophistication of the website development; fees might include consulting fees that relate to acquisition of hardware and software and capital nature of equipment and software.

It's important to review the PST component of web design where the sale of anything tangible may transform the entire charge into a taxable service. For example, if the customer takes ownership of a CD or a disk, then the entire sale may be a tangible sale but this depends on the province/territory.

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This column is written by Eileen Reppenhagen, CGA, Certified QuickBooks ProAdvisor, regional QuickBooks trainer, and Honorary Member, IPBC

Do you have a question about tax? Send Eileen your question for a future column via info@ipbc.ca

Visit her fabulous website at www.taxdetective.ca

Eileen is available for questions on the members forum

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. Every meeting is free to attend.

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VICTORIA, BC

Date: Tuesday October 27th, 2009

Time: 6:30PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Christ Community Church

3897 Holland Avenue, Victoria, BC

You are responsible for your own meal and beverage

Regional Developer: Wendy Willis, CPB

Topic: Networking Social - we will be discussing how to promote your business using the internet

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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SUDBURY, ONDate: Wednesday October 28th, 2009

Time: 5:45PM to 8:30PM

Location:

Caruso Club, 385 Haig Street , Sudbury

Italian buffet $14 plus tax and gratuity

Regional Developer: Susan Peters, CPB

Speaker: CRA Representative

Topic: CRA Compliance

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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PRINCE GEORGE, BC

Date: Thursday October 29th, 2009 at 6:00pm

Time: 6PM to 8PM

Location:

A & A Restaurant, 15th & Central, Prince George

Cost: $20 includes dinner, dessert, & beverage

Regional Developer: Margaret Ana Fernandez, CPB

Presenter: Neil Gray & Sheila Sherlock from the CRA

Topic: The Underground Economy

The CRA will be speaking on an overview of the CRA's Underground Economy (UE) programs, including information on how they combat the UE and approach UE audits.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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GRANDE PRAIRIE, AB

Date: Wednesday November 4th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Stanford Inn, 11401 -100 Ave, Grande Prairie, AB

You are responsible for your own meal and beverage

Regional Developer: Lisa Butler, CPB

Presenters Don Blonke & Vicki Townson, partners at BDO Dunwoody

Topic: What Accountants want From Bookkeepers

Come learn what accountants expectations are for year end reports.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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SUDBURY/NORTH BAY, ON

Date: Wednesday November 11th, 2009

Time: 5:45PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Caruso Club, 385 Haig Street, Sudbury

Italian buffet $14.00 plus tax and gratuity

You are responsible for your own beverages and meals

Regional Developer: Susan Peters, CPB

Presenter: Mr. Tony McGregor, CGA

Topic: Bookkeeping for the New GAAP and IFRS - come learn how your Chart of Accounts will be effected in January of 2010

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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WINNIPEG, MB

Date: Monday, November 16th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Smitty's Restaurant (Polo Park)

1017 St James Street (Corner of Ellice and St. James)

Winnipeg, MB

You are responsible for your own meal and beverage

Regional Developer: Charlene Hiebert, CPB

Presenters Hayley Hodgeson of Lazer Grant

Topic: How to market your practice and increase revenues

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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CALGARY, AB

Date: Wednesday November 18th, 2009

Time: Dinner & Networking start at 6PM

Meeting starts at 7PM-8:30PM

(meetings start & end precisely on schedule)

Location:

ABC Country Restaurant

11520- 24 Street SE, Calgary, AB

You are responsible for your own meal and beverage

Regional Developer: Alan Stenbeck, CPB

Topic: Holiday Social and Roundtable discussion on "IPBC for 2010-What would you like to see?"

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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HALIFAX REGIONAL MUNICIPALITY, NS

Date: Thursday, November 19th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

Quality Inn Dartmouth, 313 Prince Albert Road

You are responsible for your own meal and beverage

Regional Developer: Angela Franklin, CPB

Presenter: Dave Roberts-Bradley Roberts & Assoc.

Topic: Building Financial Security

Learn how to take advantage for traditional and non-traditional investment opportunities and build financial security for any size business

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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EDMONTON, AB

Date: Thursday November 19th, 2009

Time: 6PM to 8:30PM (meetings start & end precisely on schedule)

Location:

The ABC Country Restaurant

12707- 140 Ave, N.W., Edmonton, AB

You are responsible for your own meal and beverage

Regional Developer: Lynn Magnaye, CPB

Presenter: Rob Pasay - BugByte Corporation

Topic: Paranoia works, and backups are essential!

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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VANCOUVER, BC

Date: Thursday November 19th, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

ABC Country Restaurant at the Accent Inn

2350 Boundary Road (Boundary & Lougheed Hwy)

--access parking off of Boundary Road

You are responsible for your own meal and beverage

Regional Developers: Kathy Fike, CPB and Kandice Keith

Presenter: Panel Discussion headed by: Dianne Mueller, CPB - Simply Soma

Topic: Best Practices will be presented by a panel. Please ask your questions for discussion at this roundtable when submitting your reservation.

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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TORONTO EAST, ON

Date: Monday November 23rd, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

Apple Jack's

5328 Hwy 7 (at McCowan), Markham, ON

You are responsible for your own meal and beverage. Fajita Buffet for $20.00 plus tax and gratuity includes the following: Nachos House and Caesar Salad Chicken and Steak Fajitas, Selection of cake, Coffee or Tea

Regional Developer: Susan Hopcroft, CPB

Presenters:

Warren Houston, NetConneXion Internet Marketing

Canada Revenue Agency

Topics:

1)The Secret to Growing Your Business Via the Web

To use the Internet to promote our businesses, all we need is a website right? Wrong. Warren Houston will be joining us to discuss how a simple Internet marketing strategy can greatly impact the number of leads you receive and help you convert web visitors to actual customers. Warren will also be sharing the secrets to a good web site and how to improve your rankings in Google & Yahoo.

2)Taxable Benefits

The CRA is joining us to give us a refresher of what is and isn't taxable as employee benefits and to go over some new rules that have been implemented for 2009

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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TORONTO WEST, ON

Date: Monday November 30th, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

Lone Star Texas Grill (upstairs meeting room)

930 Dixon Road, Toronto, ON

You are responsible for your own meal and beverage; Fajita Buffet for $21.99 plus tax and gratuity includes the following: Chips and Salsa House Salad Chicken, Steak and Veggie Fajitas, Sweet Tray, Coffee or Tea

Regional Developer: Susan Hopcroft, CPB

Presenters:

Warren Houston, NetConneXion Internet Marketing

Canada Revenue Agency

Topics:

1)The Secret to Growing Your Business Via the Web

To use the Internet to promote our businesses, all we need is a website right? Wrong. Warren Houston will be joining us to discuss how a simple Internet marketing strategy can greatly impact the number of leads you receive and help you convert web visitors to actual customers. Warren will also be sharing the secrets to a good web site and how to improve your rankings in Google & Yahoo.

2)Taxable Benefits The CRA is joining us to give us a refresher of what is and isn't taxable as employee benefits and to go over some new rules that have been implemented for 2009

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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ST. CATHARINES, ON

Date: Tuesday, November 24th, 2009

Time: 6PM to 9PM (meetings start & end precisely on schedule)

Location:

The Blue Mermaid's Party Room (Market Square), St Catharines, ON

You are responsible for your own meal and beverage

Regional Developer: Virginia Valle, CPB

Presenter: Angela Carter of Angela Carter Enterprises

Topic: "Brand Me! How to create an infomercial on your business and yourself"

Non members are welcome to attend two meetings to evaluate IPBC.

To register for this meeting, contact us at info@ipbc.ca

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UPCOMING Regional Meetings:

Kitchener-November 18th- Meeting details TBA

Saskatoon-November 18th- Meeting details TBA

Victoria-November 24th-TBA

Kelowna-November 24th-TBA

Bridgewater-November 24th-TBA

Cobourg-November 25th-TBA

North Bay-November 25th- Year end working paper files-Presented by Dean Decaire of BDO Dunwoody

Prince George-November 26th-TBA

UPCOMING National Phone Conferences:

December 9th Special Event-Paul Ennis, CGA-New GAAP Regulations for Small & Medium Enterprises

January 21st-Social Media Presented by Jess Sloss of Giant Ant Media

February 17th-Payroll Compliance Issues-Presented by Steven Van Alstine, VP of Compliance for the Canadian Payroll Assoc. March 17th- Human Resources Issues-Presented by Joan Noel of Lightcycles Coaching

April 21st-Brand Me!-Presented by Matthew Peterson of Accounting Cycle

"The CRA's Voluntary Disclosure Program"

Time: 11:30am PT - 12:30pm PT

Cost: The meeting is free; toll charges to access the call will be your responsibility or, you may use a VOIP connection.

Topic:"The CRA's Voluntary Disclosure Program"

Presenter: Esmail Bharwani, Miller Thomson LLP

Brief summary of the presentation

Esmail will provide insight into the Canada Revenue Agency's voluntary disclosure program, the conditions for making the disclosure, its process, and the relief provisions, and will discuss how one might go about making a disclosure. Taxpayers who come forward to disclose unreported income or to correct previously claimed ineligible expenses get relief from excessive interest costs, penalties, prosecution, and publicity.

Bookkeepers who work closely with their clients may come across situations where they might consider appropriate advising their clients to take the benefit of this program, as it allows delinquent taxpayers to receive relief from past omissions, errors, gross misrepresentation, and fraud.

SPEAKER BIO

Esmail is both a lawyer and accountant who practices in the areas of tax planning, tax compliance, wills, estates and trusts, charities and not-for-profit, corporate and commercial planning and transactions, and reorganization of privately-held corporations.

He spends an extensive amount of time assisting clients with designing structures for asset protection, business succession planning, estate planning for business owners and high net worth individuals, and uses his knowledge and experience in resolving disputes with auditors, appeals and special investigation branch, and filing voluntary disclosure submissions with Canada Revenue Agency.

In addition to being a lawyer, Esmail has also been a Certified General Accountant, tax, trusts and estates practitioner and educator in Canadian taxation laws and practice, entrepreneurship creation, development and growth strategies for more than 29 years.

Esmail has a successful track record settling many income tax and GST related disputes with the Canada Revenue Agency since 1976. Esmail started making submissions under the CRA's Voluntary Disclosure Program in 1990. As a former member of the Board of Management of Canada Revenue Agency for 6.5 years and a member of the Appeals Advisory Committee and a columnist with various publications, Esmail understands concerns of taxpayers and the inner workings of the Canada Revenue Agency which contributes to his ability to harmoniously conduct business dealings with his clients and CRA.

To make a reservation for this event, please click on the link https://www2.gotomeeting.com/register/473792730

The connection details will be emailed to you automatically. .

Over the years since our inception in January 2007, members have been asking to be listed on our website. They recognize the importance of being listed, so clients can verify their membership and certification, but even more importantly, they can get inquiries directly from the business public.

Inquiries can lead to increased revenues for you. As you know, IPBC is 100% funded by membership revenues. As we continue to grow, our membership dues are used for day to day operations and for special projects. The next special project is our member listing on the IPBC main website.

It will be a little different than what you might expect. Instead of pages and pages of listings, it will be a searchable on line database of our members, based on their profile.

For example, a search can be conducted by the name of the member, or the city, or the postal code. Searches can also include what software the member is capable of using and if they hold a designation in that software, meaning, are they a Simply Certified consultant, etc.

Postal Code searches will also include proximity ability, i.e. how many bookkeepers are in the area of your postal code. More importantly, the searches can specify if they are looking for a CPB Certified Professional Bookkeeper.

Once you have updated your profile, make a date to check out your listing on line. You will note that the links in the listings are not active. This is to help discourage web spiders from gathering information for spam purposes. We all get enough spam and we certainly don't want our web site to add to it.

IPBC will soon announce another special project: A marketing plan so unique that soon, tens of thousands of Canadian business owners will learn about the merits of hiring a Certified Professional Bookkeeper.

If you are not certified yet, please make an effort to write the exam at your earliest possible convenience. Certification pays for itself, financially and in respect from your customers.

The searches are based on what you filled in on your membership application. Please take a few minutes to log into the website and update your profile. If you do not want to be listed on the website, you must choose NO, where it asks, "publish information".

We are going live with the listing services on Thursday October 22th, so please update your profile right away. It only takes a few minutes.

Your user name is your email address. If you forget your password, click the forgot password and the system will send you your password.

Feel free to call Leslee at the office, 866-616-4722 if you have any questions.

Would you like to become more involved with IPBC?

Join one of the two committees now being formed, one being the membership committee and the other being the ethics committee.

The membership committee will meet once every two months to come up with ideas for attracting new members and retaining the present members. This will be a dynamic and active group and we are looking for outgoing people. We will meet once every month via a conference call and the internet.

The ethics committee will review complaints against members. While we don't get many, they need to be dealt with in a timely fashion and with an analytical mind. This committee will meet on an as needed basis.

Please email gordon@ipbc.ca if you are interested in working on one of these committees. All meetings are conducted over the telephone.

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Do you know of other bookkeepers? Just a reminder that when you refer a member, and they put your name on the application, you get one month added to your membership. Thank you to all of you who have already referred many new members.

One of our largest consumers of time and labour is our exams. They are very labour intensive and as a result, the board has voted to increase the one time exam fee from $125.00 to $175.00.

The new fee will become effective November 1, 2009.

If you qualify, please sign up for the exam before the deadline to save the $50.00 increase in fees. Once registered, you have up to six months to write the exam. Remember, Certified Professional Bookkeepers charge out at a higher rate.

You are invited to join us for a members only reception at the Hilton Montreal Bonaventure, St. Michel room on Thursday Oct 22 at 6pm. Meet some of the board members and network with members from all over the country. You do not need to be attending the conference to attend the members reception.

Cash bar, business casual dress. Many thanks to Simply Accounting for providing the room for us.

As we are expecting about 100 people, please let us know to expect you by sending an email to info@ipbc.ca.

Name: RoseMarie Cook

What is your company name?

RM Cook Bookkeeping Services

Where is your business located?

I am located in the busy city of Prince George BC

How long have you been a member?

Officially as a member since September 2009 but have been receiving the newsletters for about a year.

Are you Certified?

No.

Tell us a bit about yourself

I have an interesting life made up of adding machine tapes, computers, collector automobiles, quilting,and fashion sewing. I enjoy learning new things that I can pass on to my clients to help make their businesses run more smoothly.

Most of my clients are entrepreneurs who have built businesses on enthusiasm and tireless drive with total disregard for paper flow and reporting so it is exciting to learn their businesses and bring new things to help them grow even bigger.

What is the most important part of being a member of IPBC? Networking and information! We all need to share with each other so we can do the best for our clients. The work we do and the information we provide is an important part of the decision making process for the people we work for--their growth is our growth.

--Thanks for sharing with us, RoseMarie!

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If you are interested in being featured in the Member Profile section, send us the following:

Company Name

City and province

Are you certified?

How long have you been a bookkeeper?

What do enjoy the most about your IPBC membership?

A picture of yourself

Whenever I meet members at a conference or at one of our own Regional Meetings, the most frequently asked question relates to fees. Bookkeepers want to know how their rates and fees compare to those charged by other bookkeepers.

From here the questions move to . . .

- Where are you located?

- How many years of experience do you have?

- How do you get help when you have a question?

- Do you work independently or in a larger firm?

- How do you get clients?

- How do you deal with difficult clients?

- Does your hourly rate vary for different services?

- And so on it goes.

Just like you, they want reassurance that they're being fair to their clients AND to themselves. And when you know and have proof that your fees and methods of doing business are competitive . . . you can confidently handle price objections or any other objections from clients.

Unfortunately, getting answers to these questions once or twice a year from only three or four people isn't much to compare to. It certainly isn't statistically valid data that comes from thousands of bookkeepers in every province. Gain insider access to FACTS

But now you have a far superior and reliable source for comparing your bookkeeping practice to others around the country: 2009 Benchmark Study - Status of the Canadian Bookkeeping Industry, by the Institute of Professional Bookkeepers of Canada (IPBC).

Follow this link to the questions for the study: http://bit.ly/IPBC-survey-email

This will be a periodic study (perhaps annually but at least once every two years) of how bookkeepers in Canada operate their business. And, just like every other study of this kind, it requires input from people within the industry. From professionals like you. It's being sent to members along with thousands of other bookkeepers we've identified through our marketing efforts. Plus we're sending out a press release announcing the study and inviting bookkeepers to participate.

The hyperlinks in this email will take you to a questionnaire divided into 8 sections. At most you'll be asked to answer questions from 6 of the 8 sections.

How to get a copy of the study

If you answer all the questions AND provide your email address at the end of questionnaire, then you'll receive a complimentary copy of the results - a $250 value.

The quality of this study -and how useful the results are-depend entirely on you and everyone else who responds. My personal request is for you to take time to give thoughtful answers based on actual data from your own business records. And please answer every question. Thank you.

I know your time is valuable. And in exchange for your efforts you'll receive a copy of the results for free if you also include your email at the end of the questions for the study. Everyone else who wants a copy will pay $250.

With the results of this study you'll KNOW exactly how your bookkeeping practice compares to thousands of others throughout Canada. You'll make better informed decisions about how to run a viable business and to grow. It will be a vital tool helping you to succeed.

Any personal or contact information remains confidential and will not be published with the study. Nor will it be shared with any third parties.

Why we're doing this

Why is the IPBC conducting the study? Because along with you and all our members we're striving to strengthen the Canadian bookkeeping profession. We're working hard to help ensure you're paid fairly and your quality contributions to the business community are recognized. And we believe a benchmark study of the industry is the basis for moving forward with confidence. It will also be a valuable tool for bookkeepers to evaluate their own practice.

You'll get the best answer possible to the number 1 question. You'll know exactly what thousands of other bookkeepers are charging; their years of experience; and dozens of other facts. You'll possess priceless insider knowledge on our profession.

And it all begins with you carefully answering the questionnaire: http://bit.ly/IPBC-survey-email. Sincerely,

Gordon

Gordon Skillen

Executive Director

Institute of Professional Bookkeepers of Canada

The Knowledge Bureau is a private post-secondary educational institute and publisher focused on excellence in continuing professional development for practicing advisors in the area of retirement, tax, investment, bookkeeping and business services.

www.knowledgebureau.com

Inspiration usually comes during work, rather than before it.

-Madeleine L'Engle

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.

Show the world that you belong to a professional association for professional bookkeepers by adding a short informational video about IPBC to your signature line in your email program. The link, entitled 'View this short informational video about IPBC' is found below.

In Outlook, click 'Tools', followed by 'Options', 'Mail format', 'Signatures', and 'New' or 'Edit', depending if you already have a signature. Then copy and paste the link, "View this short informational video about IPBC", into this spot. Click 'OK'.

Feel free to contact us at info@ipbc.ca with any questions.

View this short informational video about IPBC

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 karenl@ipbc.ca