Financial Planning For Canadian Business Owners

Thinking about incorporating your small business in Canada? Hold on! This video breaks down why staying a sole proprietorship could save you thousands of dollars and even let you deduct your mortgage interest. We'll cover what a sole proprietorship is, its advantages and disadvantages, and reveal two tax planning strategies that are exclusive to sole proprietors. Discover how to deduct business losses and utilize the cashflow-damming strategy to maximize your tax savings. Start smart and learn why sole proprietorship might be the right choice for you.*FPCBO 131 - Is Your Share Structure Making Your Business Sale Taxable?https://youtu.be/hjLmFJAV-CU Hosted on Acast. See acast.com/privacy for more information.

Join Jason Pereira and business lawyer Rachel Wasserman on this week's episode of Financial Planning for Canadian Business Owners as they delve into the intricacies of private equity. Learn about the different segments of private equity, the motivations behind selling your business to a private equity firm, and the potential long-term impacts on your business. Rachel shares her unique career journey and valuable insights on business transitions, succession planning, and the realities of private equity acquisitions. Whether you're contemplating selling your business or curious about private equity, this episode offers critical perspectives and practical advice. Hosted on Acast. See acast.com/privacy for more information.

In this informative episode, Jason Pereira, a senior partner and financial planner, provides a detailed breakdown of the two main approaches for selling or exiting a business: share sales and asset sales. He compares these approaches to selling a house versus selling the furniture inside. Key points addressed include tax implications, legal liabilities, and the overall sale process for each method. Key takeaways include how share sales can offer tax advantages like the lifetime capital gains exemption and simpler transaction mechanics, while asset sales can result in a more complex and paperwork-heavy process but allow the buyer to cherry-pick desired assets. This comprehensive guide aims to help Canadian small business owners make informed decisions when planning their business exit. Hosted on Acast. See acast.com/privacy for more information.

Wondering if selling your Canadian business will incur significant taxes? Learn about the Lifetime Capital Gains Exemption (LCGE) and how it can save you up to $1.25 million in tax-free capital gains as of 2025. Jason Pereira, senior partner and financial planner at Woodgate Financial, breaks down the eligibility criteria and tests your business “must meet” to qualify, and how improper planning can lead to costly tax liabilities. Discover actionable steps for structuring your business to maximize tax savings and multiply exemptions across family members.Tune in to ensure your hard-earned success isn't overshadowed by unexpected tax surprises. Don't forget to like, subscribe, and leave a comment! Hosted on Acast. See acast.com/privacy for more information.

In this episode, Jason delves into the tumultuous developments in capital gains taxation in Canada over the past year. From initial changes announced by the Trudeau government to the ensuing financial planning frenzy, and culminating in the resignation of the Prime Minister and a subsequent lawsuit, this video clarifies what capital gains are and how they are taxed. We examine the impact of proposed changes on investors, including those involving corporate and personal tax rates, and discuss the ultimate resolution with the election of Mark Carney as Liberal leader. Finally, we consider new proposals from opposition leaders that could affect future taxation. Stay informed on this rollercoaster of tax policy changes and their implications for Canadian investors. Hosted on Acast. See acast.com/privacy for more information.

In this episode of Financial Planning for Canadian Business Owners, host Jason Pereira and guest Harold Geller discuss critical aspects of onboarding with a financial advisor. They delve into the importance of financial planning, understanding client-focused reforms, and distinguishing between competent advisors and salespeople. Learn about the significance of plain language communication, proper risk assessments, and the pitfalls of high-fee products. Get insights on how thorough information gathering and educational discussions set the foundation for a long-term professional relationship with your advisor. Hosted on Acast. See acast.com/privacy for more information.

In this episode of Financial Planning for Canadian Business Owners, host Jason welcomes John Pelley, Co-founder and CEO of Colibri Financial Services Agents. John explains how Colibri offers fractional treasury manager services, diving into the intricacies of optimizing banking fees, loan structures, and merchant services for small businesses. They discuss why typical banking relationships are suboptimal and how Colibri provides a tailored review to unlock potential savings. John shares insights on how often businesses should revisit their financial structures and provides advice for small businesses on working effectively with banks. Tune in to understand the importance of competitive banking and the benefits of outsourcing treasury services. Hosted on Acast. See acast.com/privacy for more information.

Choosing Qualified Financial Planners: Insights from Aaron Hector, President of the IAFPIn this episode of Financial Planning for Canadian Business Owners, host Jason speaks with Aaron Hector, president of the Institute of Advanced Financial Planners (IAFP), about the importance of finding qualified financial advisors in Canada. They discuss the Registered Financial Planner (RFP) designation, the IAFP's role in credentialing and supporting financial planners, and the rigorous process required to become an RFP. The conversation also covers the benefits of working with an RFP, the IAFP's symposiums, ongoing discussions among member financial planners, and tips for selecting the right financial planner. The episode aims to guide business owners and other individuals seeking reliable financial advice.00:00 Introduction to Financial Planning for Canadian Business Owners00:22 Overview of the Institute of Advanced Financial Planners (IFP)00:45 Understanding the Registered Financial Planner (RFP) Designation02:15 Qualifications and Process to Become an RFP03:50 The Importance of Peer Review and Feedback05:57 The Role of the IFP in Supporting RFPs08:43 Benefits of Working with an RFP13:21 Tips for Selecting the Right Financial Planner19:14 Conclusion and Final Thoughts Hosted on Acast. See acast.com/privacy for more information.

Navigating Financial Planning in Canada with FP CanadaIn this episode of 'Financial Planning for Canadian Business Owners,' the focus is on finding credible financial advice. Special guest Tasha Batstone, President and CEO of FP Canada, discusses the role of FP Canada as a certifying body, emphasizing their mission to advance professional financial planning. The conversation delves into the standards and importance of the CFP designation and introduces the QAFP designation tailored for less complex financial needs. The discussion also highlights the education, certification, and ethical requirements involved in becoming a financial planner in Canada, and the stringent processes FP Canada employs to ensure public protection and professional accountability.00:00 Introduction to Financial Planning for Canadian Business Owners00:39 Finding Credible Financial Planners00:50 Profile of FP Canada02:15 Importance of the CFP Standard06:37 Path to Becoming a CFP14:28 The QAFP Designation22:01 Accountability and Enforcement in Financial Planning28:46 Why Work with a CFP Professional?30:05 Conclusion and Final Thoughts Hosted on Acast. See acast.com/privacy for more information.

Elevating Financial Planning Standards: An In-Depth Look at FPAC with Julia ChungIn this episode of Financial Planning for Canadian Business Owners, host Jason Pereira delves into the importance of seeking high-quality financial advice. He is joined by Julia Chung, the chairperson of the Financial Planning Association of Canada (FPAC), to discuss the goals and benefits of the organization. Julia elaborates on FPAC's commitment to advancing financial planning as a profession through education, community support, and advocacy for fiduciary standards. They explore membership requirements, the value of a psychologically safe professional community, and FPAC's role in elevating the industry. The episode concludes with guidance on seeking financial planning services and the significance of choosing a true financial planner.00:00 Introduction to Financial Planning for Canadian Business Owners01:05 Meet Julia Chung: Chairperson of FPAC04:18 The Importance of Fiduciary Standards07:12 FPAC's Vision and Membership13:01 The Role of Financial Planners in Clients' Lives19:56 FPAC's Community and Educational Resources25:01 Finding the Right Financial Planner27:12 Conclusion and Call to Action Hosted on Acast. See acast.com/privacy for more information.

Unlocking Insights: Expert Tips on Career Growth & InnovationIn this episode, we explore critical insights from industry experts on how to supercharge your career and drive innovation. Key topics include strategies for effective leadership, fostering creativity within your team, and the importance of continuous learning. The discussion also highlights personal anecdotes and practical advice on navigating challenges in professional environments. Listeners will gain valuable lessons to enhance their career trajectory and embrace innovative thinking in their daily work life. Hosted on Acast. See acast.com/privacy for more information.

avigating Gray Areas in Insurance and Tax Law In this episode, host Jason Pereira, alongside guest Jason Watt, embarks on an in-depth discussion about the gray areas in insurance and tax law that Canadian business owners need to be aware of. They explore complex issues surrounding the Income Tax Act's treatment of insurance, the potential risks involved with current sales tactics, and the specifics regarding corporate-owned insurance and individual policies. They discuss critical illness insurance, the implications of using corporate assets for personal loans, the nuances of the Capital Dividend Account (CDA), the mechanics of health spending accounts, and group benefits. They also touch upon the responsibilities and potential liabilities for insurance agents and financial planners. This episode aims to provide clarity and caution on often misunderstood and convoluted topics in the insurance field. 00:00 Introduction to Financial Planning for Canadian Business Owners 00:11 Gray Areas in Insurance and Tax Law 01:04 Historical Context of Insurance in the Income Tax Act 02:01 Critical Illness Insurance and Tax Code Gaps 02:59 Taxation of Corporate-Owned Insurance 05:06 Complexities of Borrowing Against Insurance Policies 10:45 Offshore Insurance Arrangements 13:56 Capital Dividend Account (CDA) Explained 17:05 Critical Illness Insurance with Return of Premium 20:43 Understanding Actuarial Valuation for ROP 21:06 Critical Illness Insurance: Real-Life Scenarios 21:56 Tax Implications and Full Disclosure 24:21 Group Benefits: Tax Outcomes and Gray Areas 29:14 Health Spending Accounts: Rules and Risks 33:43 Shareholder Benefits and Tax Risks 37:49 Agent's Obligations and Client Protection 41:52 CRA's Response and Tax Court Realities 45:11 Conclusion and Final ThoughtsResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – Sponsor Hosted on Acast. See acast.com/privacy for more information.

Exploring Defined Contribution Health Plans with Steve McEwenIn this episode of 'Financial Planning for Canadian Business Owners,' host Jason Pereira welcomes Steve McEwen from My HSA to discuss defined contribution benefits programs, specifically Health Spending Accounts (HSAs) in Canada. They delve into the differences between traditional benefits programs and HSAs, the flexibility and advantages of HSAs, and the insurance options that can be layered with these accounts. McEwen provides insights on setup, costs, and the use of technology to manage claims, fraud prevention, and the overall benefits for both employers and employees.00:00 Introduction to Financial Planning for Canadian Business Owners00:25 Understanding Health Spending Accounts (HSAs)01:39 Comparing HSAs to Traditional Benefits Programs04:34 Catastrophic Insurance and Additional Coverage Options07:52 Privacy and Legal Considerations for Employers10:39 Setting Up and Administering HSAs17:14 Cost and Tax Implications of HSAs23:37 Employee Experience and Fraud Prevention28:54 Conclusion and Final Thoughts Hosted on Acast. See acast.com/privacy for more information.

In this episode, Jason welcomes back listeners to 'Financial Planning for Canadian Business Owners' after a hiatus, and announces a new video format with guest Dr. Daniel Crosby, a New York Times bestselling author and Chief Behavioral Officer at Orion. Dr. Crosby discusses his latest book, 'The Soul of Wealth: 50 Reflections on Money and Meaning,' exploring the intertwining of wealth with meaning and purpose. They delve into the PERMA model of positive psychology, the importance of naming financial goals, and how psychological and behavioural insights can enhance financial well-being. Dr. Crosby shares personal anecdotes, including his health scare that led to the book's inspiration, and the notion that true wealth transcends mere financial achievement, emphasizing meaningful engagement, relationships, and personal growth. Hosted on Acast. See acast.com/privacy for more information.

In this episode, Jason talks to Jon Shell about the advent of employee ownership trusts in Canada, a game-changing legislation that addresses previous concerns and paves the way for a more inclusive and equitable business ownership structure. Through a deep dive into the intricacies of this model, listeners are offered a comprehensive understanding of its benefits, implications, and transformative potential for both business owners and employees alike.Episode Highlights:00:51: Jon shares his enthusiasm for being back on the podcast, reinforcing the collaborative nature of the conversation and evidencing the ongoing dialogue within the financial community on employee ownership.00:57: Jon Shell discusses the context of the budget that introduced employee ownership trusts, identifying it as a standout positive in a predominantly negative financial announcement. His perspective sets the stage for an exploration of how this model can change the future of business ownership in Canada.01:12: Shell provides a background on his role at Social Capital Partners, highlighting the organization's mission to democratize asset ownership and its focused efforts on advancing employee ownership as a vehicle for social and economic equity.05:46: Tax incentives associated with employee ownership trusts are explored, providing clarity on the fiscal advantages for selling business owners, including significant capital gains tax exemptions.06:11: The conversation shifts to the legislative nuances of employee ownership trusts and the substantial economic and societal benefits these structures offer, fostering job creation, economic resilience, and employee welfare.08:18: Details on the specific rights and benefits that employees gain through participating in an employee ownership trust are outlined, offering insights into how this model promotes financial inclusion and workplace democracy.12:12: The episode concludes with a forward-looking discussion on the potential expansion and long-term impact of employee ownership trusts in Canada, indicating a bright future for this innovative business model.Key Takeaways:Employee ownership trusts offer a transformative model for business succession, aligning economic incentives with social benefits. - Tax incentives for business owners, including a substantial capital gains tax exemption, make this an attractive option for ensuring legacy and employee welfare.Employees gain not just from financial participation in the success of their company but also from having a voice in its governance, promoting a more democratic and equitable workplace.The introduction of employee ownership trusts represents a significant shift towards more inclusive capitalism, with potential long-term benefits for the Canadian economy and society.Tweetable Quotes:"Employee ownership trusts redefine business legacy and inclusivity.""The transformative power of employee ownership trusts aligns profit with purpose.""Economic resilience is built on the foundation of employee ownership." Resources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorPodcast Editinghttps://www.socialcapitalpartners.ca/ https://www.linkedin.com/in/jon-shell-8952491/ Hosted on Acast. See acast.com/privacy for more information.

In this episode, Jason Pereira discusses the world of virtual assistants for financial advisors, featuring insights from Andrew Evans, Founder of ROffice. Through their conversation, listeners gain valuable knowledge on how virtual assistants can revolutionize the way financial advisors operate, ensuring efficiency and effective client service. This episode is a deep dive into outsourcing certain business operations to optimize service delivery and business growth. Episode Highlights:00:37 - Introduction of Andrew Evans and the background to the discussion on virtual assistants. Jason outlines the problem of operational efficiency and how virtual assistants could be the solution for financial advisors, facing staffing issues due to fluctuating workloads or regulatory demands. 01:24 - Andrew Evans discusses the founding principles behind ROffice, emphasizing the common staffing challenges within regulated firms and how virtual assistants can help right-size personnel needs. This segment highlights the innovative approach ROffice takes, likening their service to an "Airbnb" for professional capacity, allowing flexibility for businesses to scale up or down as needed.04:16 - Andrew explains how advisors can identify the right time to engage a virtual assistant, using an example involving annual client outreach. This moment in the podcast emphasizes the operational pain points that could be alleviated by outsourcing specific tasks. 06:16 - The discussion delves into how businesses often overlook the potential of virtual assistants in optimizing workload management, focusing on the flexibility and cost-effectiveness of such arrangements. 11:01 - Andrew and Jason discuss how ROffice functions as a marketplace to connect advisors with virtual assistants, including how they manage security and compliance concerns. This part of the conversation is crucial for understanding the operational and security framework that encapsulates the virtual assistant offering.Key Takeaways:Virtual assistants can significantly enhance operational efficiency for financial advisors, allowing them to focus on core activities and client engagement.Identifying tasks that do not require physical presence in the office is the first step toward integrating virtual assistants into your business operations. Working with a service like ROffice offers flexibility and cost-effectiveness, providing a scalable solution to staffing challenges while ensuring compliance and security.The decision to employ a virtual assistant should be preceded by a careful analysis of business needs and potential tasks for outsourcing, ensuring a strategic approach to capacity management. Tweetable Quotes: "Leverage virtual assistants to right-size your personnel needs and focus on what truly matters in your business." - Andrew"Virtual assistants are the middle ground that allows advisors to scale up efficiently without the commitment of full-time hires." - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorPodcast Editinghttps://app.roffice.team/ https://www.linkedin.com/in/andrew-j-evans-218a16265/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Richard Parker, owner of the Diomo Corporation. They delve into the critical aspects of buying and selling businesses, focusing on the complexities around what sellers might not disclose and how buyers can navigate these challenges for a successful acquisition. The conversation offers a wealth of insights, drawing from Parker's extensive experience in helping individuals acquire businesses in the lower market.Episode Highlights:00:07: Jason Pereira introduces the episode, setting the stage for an in-depth discussion on the intricacies of selling and buying businesses, with insights from award-winning financial planner and entrepreneur Jason Pereira and Richard Parker.02:11: Richard embarks on a discussion about the critical aspects buyers must consider, including the significance of understanding the future of a business from the seller's perspective, the potential for customer concentration issues, and the overarching theme of whether stability or growth presents a more valuable proposition for the buyer.10:06: Important aspects like key employees and their potential impact on the business after acquisition are discussed. Richard sheds light on the necessity of identifying truly key employees and devising strategies to retain them post-acquisition.12:22: The dialogue transitions to the operational challenges and pitfalls that might not be disclosed by sellers, emphasizing the importance of aligning the business's needs with the buyer's skill set and avoiding the trap of falling in love with the product rather than focusing on the profit.15:48: Richard and Jason discuss the negotiation phase, debunking myths about deal-making and stressing the importance of approaching negotiations with a balanced perspective, focused on constructive outcomes rather than winning every point.18:01: The conversation culminates in a discussion about realistic expectations regarding deal terms, the imperfection of businesses, and the potential for sellers to adjust their expectations based on real market feedback.Key Points:Understanding the future of the business and uncovering hidden challenges are paramount for buyers.Key employees and supplier relationships significantly influence the stability of the acquired business.Effective negotiation requires a balance between strategic firmness and flexibility, focusing on establishing a mutual understanding rather than winning outright.Tweetable Quotes"Growth is very sexy, but stability provides value." - Richard Parker"Fall in love with the profit, not the product." - Richard Parker"Deal-making is not about winning every point but achieving a balanced outcome that benefits the buyer while keeping the seller reasonably happy." - Jason PereiraResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorRichard ParkerDiomo Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira interviews Tim Hewson, CEO of LegalWills, an online platform providing millions of users with a simple and accessible solution for creating legal and compliant wills. Tim discusses the importance of having a will, the challenges of estate planning, and how Legal Wills aims to demystify the process.Episode Highlights:03:00: Recognizing the inadequacies of existing will templates, Tim and his co-founder envisioned an online platform, drawing inspiration from Microsoft Office's user interface to guide users through the will preparation process.08:39: Tim talks about additional estate planning documents, including a Financial Power of Attorney and Living Will, designed for situations where an individual loses capacity, and decisions need to be made on their behalf.11:32: Tim discusses the expansion of LegalWills to multiple countries and the challenges of adapting services for different jurisdictions. He introduces the concept of expatriate wills, allowing users to cover assets in different countries with complementary wills.16:57: Jason reflects on the binary decision people face when choosing between affordable online services like LegalWills and more expensive options for complex legal matters.22:31: Tim acknowledges the challenge of changing the perception that creating a will is only necessary when someone is about to die. He discusses the battle to disassociate the act of writing a will from thoughts of death, emphasizing that estate planning should be a standard part of financial planning.24:28: Jason and Tim emphasize the emotional impact on families left to deal with disorganized estates and stress the importance of creating a will to prevent conflicts and contempt among family members.Key Points:LegalWills aims to simplify estate planning, catering to diverse needs, including those of blended families.Tim discusses the challenge of balancing growth and service quality as Legal Wills has steadily expanded without external funding.The platform has made a positive impact on users and charities, emphasizing the importance of organized estate planning for individuals and Tweetable Quotes:"Writing a will shouldn't be about dying; it's part of financial planning. Organize your affairs while you're well; it's a gift to your loved ones.”"We're on a mission to demystify wills. Losing the legalese can make the process more accessible. It's about clear instructions, not complex language.”"Every person who used our service is better off—over a million users and counting. Helping families and charities with organized estate planning is what keeps us going.”Resource Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – SponsorLinkedIn – Jason Pereira's LinkedInhttps://legalwills.company/https://www.linkedin.com/in/timhewson/?originalSubdomain=caPodcast Editing Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Aravind Sithamparapillai, an associate at Ironwood Wealth Management Group. Aravind is known for his unique and novel research on the cost of the Canada Pension Plan, and they will talk about the intricacies of Canada Pension Plan and its often-underestimated value for business owners. During the conversation, Aravind and Jason delve into the comprehensive out-of-pocket expenses for employees, taking into account tax credits and deductions. The dialogue explores the fluctuation in costs depending on income levels and the potential for tax savings.Episode Highlights:03:20: Aravind acknowledges Jason's content on corporate topics and integration, highlighting the confusion around CPP savings and the realization that the after-tax impact needs closer examination.09:26: Introducing a chart to visually represent net costs for employers, the conversation explores hypothetical examples across various income levels. Emphasis is placed on the significance of taking the entire tax scenario into consideration.14:15: Aravind introduces the concept of the Canada Child Benefit and other income-tested benefits that can be impacted by the choice between salary and dividends. He emphasizes the importance of considering all factors in optimizing total wealth.21:43: Aravind discusses the "light bulb" moment regarding CPP calculations. He explains that when an individual takes CPP, a bonus is calculated on top of the actual CPP rate for that specific year.22:26: The emphasis is on the assertion that the expansion of CPP extends beyond inflation; it encompasses real income growth attributed to the additional growth linked to the average industrial wage.25:21: Jason discusses the importance of considering Old Age Security (OAS) and CPP in retirement planning. He also addresses the common belief that everyone thinks they will live to 100, pointing out the statistical likelihood of living longer as one ages.Key Points:Jason and Aravind discuss the worst-case scenario related to CPP contributions and how the tax savings play a crucial role, reducing the total contribution amount by over a third.The conversation delves into the considerations for business owners deciding between salary and dividends.The discussion emphasizes the importance of benefits of the Canada Pension Plan, including survivor benefits and disability portions in situations where private disability insurance may not be practical.Tweetable Quotes:"Choosing between salary and dividends? Consider the nuances of dividend gross-up and the impact on CPP contributions—it's often less than expected.” - Jason"Government-backed index-to-inflation lifetime income from CPP provides financial peace of mind in retirement. It's like having a reliable insurance policy, offering comfort and security for the later years of life.” - Jason"Undervaluing the benefits of CPP? A study shows people often discount the value of annuities. Let's rethink the perception—CPP is a dependable, indexed-to-inflation income source with long-term financial advantages." - AravindResources Mentioned:https://www.ironwoodcanada.com/aravind-sithamparapillaiFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Ron Butler, the founder of Butler Mortgages and a prominent figure in the Canadian mortgage space. Ron, known for his insightful Twitter presence, discusses the impending "perfect storm" of mortgage renewals and the current interest rate landscape in Canada.Episode Highlights:00:39: Ron describes himself as an experienced mortgage broker with 29 years in the business, highlighting substantial mortgage volume.05:10: Ron explains the impact of COVID, quantitative easing, and selling fixed-rate mortgages at 1.49%. He also talks about the upward trend in rates in 2019, coinciding with economic buoyancy and surging house prices.09:02: Ron addresses the surge in mortgage debt during COVID, particularly with variable-rate mortgages starting at 1.45% and now at 6.2%. He describes the genuine consumer pain experienced by those facing mortgage payment increases, especially those dealing with income changes or additional financial commitments.15:19: Ron mentions the impact of high immigration on the demand for housing and the challenges in obtaining permits for new builds. talks about the significant governmental costs associated with building houses today compared to 25-30 years ago.17:30: Jason asks Ron about what people should be thinking about in preparation for upcoming renewals, 12-24 months out.18:48: Ron advises those with variable rates experiencing negative amortization to make voluntary payments and lump-sum payments to avoid growing mortgages.20:50: Ron highlights that despite talk about longer mortgage terms, the utilization of 10-year terms has never exceeded 3% in Canada, indicating the strong desire for low-interest rates.21:53: Jason emphasizes the strain people put on themselves to negotiate for minimal interest rate improvements, showcasing the demonstrated preference for lower rates.23:26: Ron explains that self-employed individuals often aim to minimize personal tax, resulting in reduced income visibility for mortgage applications. He mentions the government's emphasis on net taxable income as the primary metric for mortgage qualification, regardless of assets or retained earnings.25:28: Ron and Jason discuss the tendency of business owners to prioritize accountants who reduce personal taxation, even if it comes at the cost of Canada Pension Plan contributions.26:16: Jason acknowledges the complexity of tax planning and the compromises involved, such as lower reported income affecting personal borrowing capacity.27:35: Ron encourages listeners to shop around for mortgage renewals, emphasizing the potential savings even if it's only a quarter percent, and cautions against giving the bank more money without reason.Key Points:Ultra-low interest rates led to a surge in mortgage debt, posing challenges for renewals in 2024 and beyond.Business owners may face reduced borrowing capacity at mortgage renewals due to lower reported income for tax planning. Plan wisely.Amid changing interest rates, shopping for mortgage renewals is crucial. Don't settle – explore options and save money in the long run.Tweetable Quotes:Recognize that interest rates are dynamic, and lower rates might be on the horizon by 2025. Understand the potential impact on mortgage renewals.Don't settle for the status quo. Take the time to explore different mortgage options and lenders during renewal periods, even small interest rate differences can result in significant savings.If your mortgage is increasing, take proactive steps to avoid paying interest on interest. Consider prepayment and increased payments to maintain control over your financial situation during renewals.Resources Mentioned:https://www.butlermortgage.ca/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Sandy Pollack, author of the book "Don't Leave a Mess." The focus of the book revolves around estate planning, emphasizing the crucial distinction between financial thinking and financial planning. Sandy delves into the necessity of understanding both concepts to effectively navigate the complexities of financial management.Episode Highlights:01:55: Sandy introduces the concept of estate thinking and planning, emphasizing the need to differentiate between the two. She stresses the importance of careful consideration rather than a quick and efficient approach.03:00: Jason shares his perspective on the urgency some people feel when addressing estate planning and highlights the misconception that writing a will is an ominous sign.08:38: Sandy emphasizes the importance of understanding one's net worth, pointing out that many successful entrepreneurs are unaware of their actual wealth. She underscores the need to comprehend the composition of wealth and addresses illiquidity issues.09:54: Jason adds insight into the delusion some entrepreneurs have about their business's value, emphasizing the significance of realistic valuation for effective tax planning.13:36: Sandy acknowledges the honour of facilitating family meetings and emphasizes the richness that emerges from each generation's perspective, guiding the conversation towards the transformation of wealth into significance.16:17: Sandy delves into collaboration, differentiating it from cooperation. She stresses the significance of sharing information among professional advisors for a holistic approach to planning.21:59: Sandy recounts the importance of addressing family dynamics through personalized letters and meetings. She emphasizes the power of relationships, clarity, and understanding within families.28:29: The discussion shifts to individuals who inherit wealth without having their own businesses. Jason wants to explore how this inherited wealth affects the estate planning process.33:21: Jason expresses concern about the unrealistic expectations being fostered and questions whether people are led to believe that billionaires are lacking the minimum effort required.35:13: Sandy introduces the emotional factors associated with estate planning, including guilt and shock. She emphasizes changing the narrative from "passing down" to "passing wealth to."36:13: Sandy emphasizes the three keys to managing wealth: save some, spend some, and share some. She talks about the positive attributes of money and its potential to make a significant impact, such as eradicating hunger, promoting literacy, and providing scholarships.Key Points:Estate planning isn't just about passing down wealth; it's about passing wealth to the next generation with intentionality and wisdom.Being a steward of inherited wealth involves not just managing it but also imparting financial fluency to the next generation.Money has the power to do exceptional things; beyond financial security, it can create a lasting impact on society.Tweetable Quotes:"In estate planning, it's crucial to address emotional factors like guilt and shock, not just financial aspects, fostering a healthy family legacy.""Financial literacy for young adults is essential; amidst misinformation, parents should teach about saving, spending, and the purpose behind wealth.""Estate planning goes beyond documents; it involves collaboration, communication, and transparency among advisors for client clarity and confidence."Resources Mentioned:https://www.dontleaveamess.ca/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Scott Terrio, Manager of Consumer Insolvency at Hoyes Michalos. Scott is here to discuss the impact of COVID-19 on businesses, focusing on the Canadian Emergency Business Account (CEBA). Jason and Scott will also delve into the economic challenges faced by various sectors and the diverse effects of the pandemic on businesses and the unexpected impacts on certain sectors during different phases.Episode Highlights:01:06: Scott provides an overview of his role and the services offered by Hoyes Michalos, highlighting their focus on personal insolvencies and their significant experience in the field.02:52: Jason introduces the main topic, discussing the Canadian Emergency Business Account (CEBA) and its implications for businesses.03:24: Scott explains the purpose of the CEBA and its role in providing financial support to businesses during the economic downturn caused by the pandemic.07:02: Scott provides insights into the diverse range of businesses significantly impacted by the pandemic, highlighting sectors like restaurants, bars, entertainment, tattoo artists, and flight attendants.12:19: Jason outlines the current challenges faced by business owners, including loans coming due, economic difficulties in specific sectors, and cash flow constraints.13:12: Scott highlights the aggressive actions taken by the Canada Revenue Agency (CRA), freezing accounts, and putting additional pressure on businesses. He also mentions businesses using funds meant for HST or payroll to sustain operations during the pandemic.16:30: Scott emphasizes the importance of seeking assistance promptly, sharing insights from their experience that individuals often take 12 to 24 months to reach out for help when realizing they're in financial trouble.28:21: Scott introduces the concept of tribal knowledge derived from the US and emphasizes the inclusion of various unsecured debts in a consumer proposal, such as tax, HST, credit cards, personal loans, and more.28:56: Scott compares the insolvency code in Canada to the U.S. He emphasizes that Canada's system is more gentle, less litigious, and cheaper.Key Points:Scott provides insights into the struggles of small businesses, ranging from restaurants and bars to tattoo artists and flight attendants, highlighting the diverse impact of the pandemic across different industries.The discussion covers the economic uncertainty during the early days of the pandemic, the unexpected impacts on sectors like flower shops, and the challenges faced by businesses in terms of ramping up and letting go of employees.Scott addresses counterproductive behaviours individuals exhibit during financial struggles and stresses the legal obligation of trustees to provide options.Tweetable Quotes:"Time is the enemy of debt. Seeking assistance promptly is crucial. Waiting 12-24 months to address financial troubles can exacerbate the situation.""Consumer proposals offer a more inclusive approach, covering tax, credit cards, and more. Understanding the nuances helps dispel misconceptions about the insolvency process.""In the complex game of finances, early intervention is your winning strategy. Act promptly, seek advice, and navigate the challenges strategically to secure your financial well-being."Resources mentioned:https://www.linkedin.com/in/scott-terrio/?original_referer=https%3A%2F%2Fwww%2Egoogle%2Ecom%2F&originalSubdomain=ca Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Alexandra Moore, CEO and lead strategist at Coach House Marketing. she's also a certified digital advisor and she is here to discuss about Canada Digital Adoption program, a government program that's out there to help businesses adopt digital strategies.Episode Highlights:02:12: Alexandra shares her journey of returning to school for a Digital Transformation Certification Program at Yale during the emergence of the Canadian government's Digital Adoption Program.05:50: Alexandra clarifies her role as a certified digital advisor for the program and notes the underutilization of grant funds, encouraging businesses to access available resources.08:55: Alexandra lists the areas covered in Stream 2, emphasizing the comprehensive digital strategy provided to businesses. She explains the digital roadmap, digital needs assessment, and actionable insights provided to businesses.10:27: Jason asks about the time commitment involved for businesses going through the program, and Alexandra discusses the flexibility in timing and structuring calls based on the entrepreneur's needs.11:46: Alexandra addresses the perception of value in the consulting work and emphasizes providing maximum value under the government grant.13:13: Alexandra advises businesses to inquire about post-CDAP services, reimbursement rates, and references when selecting a digital advisor. She talks about the importance of making services financially feasible for small and medium-sized businesses.17:26: Alexandra outlines the funding options, including 0% financing from BDC, a proposed budget, and the use subsidy wage grant for implementation support.19:38: Jason summarizes the bottom line of the Canada Digital Adoption Program (CDAP), emphasizing that it provides funding for a comprehensive report from experts and supports the implementation of the plan.20:03: Alexandra mentions that the funding covers 90% of the plan, with businesses responsible for the remaining 10%. She advises businesses to be mindful of the application process and recommends interviewing multiple digital advisors to find the best fit for their needs.Key Points:The Canada Digital Adoption Program (CDAP) supports businesses in adopting digital strategies through government-funded grants.CDAP has two streams – Stream 1 offers the "Grow Your Business Online" grant, and Stream 2 provides a $15,000 digital strategy grant for a comprehensive overview of digital systems.Businesses should be aware of the 90/10 funding split, with the program covering 90% of the plan cost. It's crucial to interview digital advisors to find the right fit for their needs.Tweetable Quotes:"CDAP offers a $15,000 digital strategy grant, encouraging businesses to access the funds and expertise to strategically integrate digital systems." - Alexandra"In the digital age, small and medium-sized businesses face opportunities and risks. CDAP's role is to bridge the gap, offering comprehensive support for digital transformation." - Alexandra"CDAP isn't just about funds; it's a pathway to a digital roadmap. Small business owners get a clear plan, actionable insights, and support for implementation." - AlexandraResources:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://coachhousemarketing.com/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Luc Lapalme, Senior Principal at Mercer. It is a very large consulting company that consults on various aspects of business. Today he will be discussing about their compensation planning survey, and this is a survey about employers and what they are looking to accomplish or what they are looking to do when it comes to salaries for staff in the coming year.Episode Highlights:01.15: Luc explains that he specializes in compensation management and advises clients on various aspects of compensation programs, including salary structures and incentive design for both executives and salaried employees.04.30: Jason mentions that in recent years, there has been a realization among many that simply matching salary increases to inflation may not be sufficient, especially when inflation rates are high.10.03: Luc mentions that organizations are increasingly providing off-cycle adjustments to their employees, which are not officially included in the budget forecasts. These off-cycle adjustments are often provided to employees at higher risk or those due for promotions.12.06: Luc notes that certain organizations are targeting the 75th percentile of the market to ensure they are highly competitive with specific roles. This highlights the efforts being made by organizations to attract and retain talent in a rapidly evolving work environment.21.48: By focusing on employee engagement and the employee experience, HR managers can enhance job satisfaction and retention, even in situations with tighter budgets, says Luc. 3 Key Points:Luc highlights the impact of the great resignation during the pandemic, which led to increased employee turnover and job changes. However, he notes that attrition rates have decreased, with one study showing a drop from 21% to 18%, indicating more stable employment.Luc provides an example of how changes in minimum wage, such as the increase in Ontario's minimum wage, can create ripple effects and competitive pressures in the labour market for more competitive pay.Jason shares an example from the accounting field in the US, where large accounting firms in cities like New York and Washington, DC, began recruiting talent from across the country. This resulted in some smaller to mid-sized cities experiencing reduced operations or becoming less attractive for talent acquisition due to the significantly higher salaries offered in larger cities.Tweetable Quotes:“The Compensation survey is conducted annually to gather information from participating organizations. Its primary purpose is to understand the organizations' intentions regarding salary adjustments, particularly for the year 2024” - Luc.“The differing salary forecasts between Canada and the United States can be attributed to various socioeconomic factors.” - Luc“While organizations are becoming more transparent about salary bands, they are generally not disclosing specific employee salary details or bonus information due to privacy concerns.” - LucResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://www.linkedin.com/in/luc-lapalme-mba-96563239/?originalSubdomain=cahttps://www.mercer.com/en-in/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Alex Kirby, Co-Founder and CEO of Total Family Management. It is a company focused on family coaching and helping families through the dynamics and personalities that are in the family to create better cohesion and better family Wellness and long-term satisfaction for everybody. They explore the challenges of entitlement within family businesses and how purpose can be used to unify the family's values and goals. It also touches on the initial steps of onboarding with Total Family Management.Episode Highlights:4.12: Jason wants to know how family dynamics change as young families evolve into families with teenagers and adults, and ultimately as the older generation, the patriarchs and matriarchs, transition into their senior years.4.38: Alex outlines his approach to classifying people into four distinct life stages like the wonder segment, the balance segment, the harmony segment, the wisdom or legacy segment within families and these stages are akin to being sorted into different houses like in Hogwarts.6.45: Alex highlights that having a clarified vision is crucial for a sense of direction and well-being, regardless of one's age or life stage.13.18 Alex says, maintaining a healthy, normal relationship with adult children and transitioning from a parenting role to a more peer-like relationship is an important challenge that needs to be addressed over an extended period.29:02: Alex discusses the concept of passing on values and how purpose can be a unifying factor in families, especially in the context of family businesses.32:02: Alex discusses the process of engaging with Total Family Management and outlines the steps clients typically go through to make the most of their time with the service.34:04: Alex emphasizes the authenticity of their company and how everyone in their organization goes through the processes they advocate for, ensuring that they practice what they preach.3 Key Points:Jason and Alex discuss the challenges faced by business owners, especially when it comes to succession planning and family dynamics within the business.Jason highlights several challenges and complexities that arise in family businesses when it comes to succession planning.Total Family Management offers a transparent and straightforward process for clients to engage with their coaching services, with a focus on providing ongoing support and flexibility to address family dynamics effectively.Tweetable Quotes:“Waiting until the final stage to address important family dynamic and communication issues may not be the most effective approach.” – Jason“Parents often possess the answers to the questions asked during the coaching sessions but may not have explored them before. The goal is to create a safe space for discussing important family matters. “- Alex“If parents care enough to participate in a conversation or coaching session about their children, it demonstrates a significant commitment, which is a crucial step in addressing family dynamics.” - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://totalfamily.io/offer Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira interviews John Stroud, the CEO of AI Guides, an AI strategy and consulting company. The episode focuses on artificial intelligence, particularly generative AI, and how it can benefit businesses of all sizes, including single-person operations. The conversation explores various options available in the AI space to improve business operations.Episode Highlights00:43: John Stroud explains that AI Guides help organizations harness the power of artificial intelligence, specifically focusing on generative AI. He mentions that AI can benefit businesses of all sizes, even single-person operations, and there are various options available to improve business processes.01:53: AI, particularly ChatGPT, is a hot topic and mentions its significant impact on technology. John highlights how ChatGPT quickly captured everyone's imagination and compares its impact to previous revolutionary technologies like the iPhone.02:48: ChatGPT's impact has made artificial intelligence a hot topic in technology.11:21 John explains how users can fine-tune the AI model with their own data for specific answers.11:40: Jason and John mention using AI-powered tools like Chat GPT in Google Docs and Microsoft Office for writing blog posts, letters, and other documents. He emphasizes the time-saving benefits of these tools and how they can be easily implemented without intimidation.15:48: John suggests treating the exploration of AI as a science experiment and considering the opportunities while managing the potential risks.16:37: If someone wants to expand their use of AI, they can consider seeking outside help for advice, says John.17:26: John mentions a system called "PDF or chat PDF" where PDFs can be uploaded, and questions can be asked.18:35: John mentions the possibility of OpenAI developing more private containers for protecting information.19:45 John discusses foundational steps and what people should be aware of before starting their AI journey.24:00: John raises the topic of prompts and their importance in AI.29:35: John advises staying ahead of the rapid pace of AI development and starting with small improvements.30:31: John emphasizes the need for continuous learning and adapting to new tools and technologies.3 Key PointsJohn and Jason discuss the potential risks, costs, and consequences of AI projects that are not properly planned or supported by the necessary infrastructure.John and Jason explain how generative AI has made AI more accessible and easier to implement, addressing some of the challenges related to data stewardship and system integration.There is a government grant in Canada that provides funding for digital strategies, making it easier for companies to explore AI opportunities.Tweetable Quotes"Chat GPT can be a helpful resource in understanding AI and its applications." - John"Open AI is going to allow for more private containers where you make sure that your information will be protected." - John"You are creating a digital strategy. So, for companies that have a $500,000 in revenue. They probably qualify for this grant, and that gives them $15,000 towards the preparation of this strategy. So, if you got a hunch about how you might be able to use AI, then the vast majority of the cost is covered through a grant." - JohnResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Jon Shell, the managing director and partner at Social Capital Partners. Jon is an advocate for employee ownership trusts in Canada. The episode discusses what employee ownership trusts are, the benefits they provide to employees, and the challenges faced in implementing them in Canada. The conversation highlights the changes in tax laws related to employee ownership trusts and Canada's first attempt at implementing them. Episode Highlights03:16: Jon Shell explains that the objective of the employee ownership trust structure was to provide access to ownership for those who lacked it in the economy.05:12: In the UK, the concept of an Employee Ownership Trust (EOT) was established in 2014, allowing companies to allocate profit sharing to all employees and sell the company to employees at no cost. Jon highlights the success of EOTs in the UK, with numerous companies adopting this structure. 06:20: Jon discusses the comparison between employee ownership trusts and employee share ownership plans or stock option plans.08:11: Employee cooperatives, or co-ops, are another option in Canada. They involve democratic ownership, where all employees have the right to vote on decision-making processes. 09:37: There is a well-known example of a massive Spanish company called Mondragon, which operates with a structure similar to Athenian democracy. 10:49 Jon talks about the incentive for the owner who wants to sell their business to an employee ownership plan.11:11: In the UK, there was a structure that allowed people to use a leveraged buyout on behalf of employees. 15:23: For the vast majority of businesses, the concern about gaming the system or preventing certain types of businesses from benefiting doesn't hold true. Most businesses do not fall into the category of high-end consulting firms where only the wealthy benefit. 3 Key PointsJon shares the success story of the employee Stock Ownership Plan (ESOP) in the US, which has grown to include 6,500 companies and 14 million American workers.Jon explains how co-ops can be effective forms of employee ownership, but they are typically applied to smaller firms.The lack of tax incentives beyond deferral is a significant drawback. It creates a situation where there is no real incentive for owners to consider employee ownership beyond personal benevolence.Tweetable Quotes"Employees get access to shares at a certain price and can exercise them later to participate in the company's growth." - Jon"For larger companies with hierarchical structures, owners may be concerned about the risks associated with selling to a co-op, especially if the company has not operated in that manner before. Co-ops can be effective forms of employee ownership, but they are typically applied to smaller firms." - Jon"Setting up a worker co-op with more traditional governance and committees can be burdensome and costly. In larger companies, it may be challenging for employees to afford the shares necessary to buy the company." – JonResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Braden Warwick, research associate at PWL Capital. Braden has recently composed a study on optimal compensation savings and consumption for business owners of private corporations. Braden has recently composed a study on optimal compensation savings and consumption for business owners of private corporations. Braden's study was a deep dive at a lot of things that started by looking specifically at compensation, structures, and methodologies and had several interesting findings.Episode Highlights:01:38: Braden shares how he switched his field and how he joined PWL Capital where he was tasked to answer complex problems that the firm is having. 07:16: Braden defines the problem while he does all the research, he explains to people everything which is foundational.08:56: Jason and Braden talk about the different approaches to income as a starting point.14:43: The final paper investigated over 7,000,000 financial planning outcomes, says Braden.19:47: Planning should be around keeping the passive income below 150, because that's when the general corporate kicks in and then you are still in that sweet spot of the transition zone for Ontario and New Brunswick residents.20:49: When the calculation comes up the IP contribution would be less than the equivalent RSP contribution, they can choose to contribute the full RRSP contribution room.21:31: You can basically transfer your RSP assets into the IP and then if any additional corporate funding is required to purchase that service, then that opens up an additional contribution room from the corporation into the IP.40:05: If you are primarily an equity investor, you are generating more capital gains, which is more CDA credit, which is tax free. 3 Key Points:Braden explains how he is trying to solve the key issues around compensation and retirement savings because dividends versus income are one thing versus notional account-type distributions.Braden shares how the net personal cash is higher in the transition zone than it is with either the small business rate or the general corporate.The longer the CDA sits in there, or the longer those tax refunds sit in those notional accounts, the lower the purchasing power becomes over time.Tweetable Quotes:"For me being relatively new to the world of finance was not a trivial task, because especially with things like IP's, you can't just Google that that information is not readily available." - Braden"The problem, as we could starting from the very high level of an individual would come to us with the question of how much can I sustainably spend over the course of my lifetime and then how much net worth will I be left with on average at the end of the day and what's the best plan to get me there and to maximize those." - Braden"For those folks that want to maximize consumption, we found that the IP with the maximum salary was the best route." – Braden"The lower return than the pension also resulted in a lower return within the core, but also less efficient dynamic income." - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWebsite – Braden Warwick Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Aaron Hector about Canada's newest registered account, the FHSA - The First Home Savings Account. Aaron Hector is a private wealth advisor for CWB Wealth. He works primarily with individual clients and family direct client relationships.Episode Highlights:02:30: Aaron talks about the restrictions in the FHSA account. You can put up to $40,000 in your lifetime. But you can only put $8000 per year.03:07: Jason explains how housing is a bigger concern in Canada than in US.03:52: One of the things that always happens when new accounts come out is that invariably people don't understand the rules.06:40: Aaron talks about the penalty and additional expenses associated with the FHSA account. 09.26: Before opening the FHSA account it is extremely important to read the small prints, eligibility criteria and guidelines, says Aaron.11:05: If you start with making fresh contributions to your FHSA, maybe you marry someone who has a house already, that's hour on buying a home for whatever reason that homeownership gold doesn't come to fruition.12:38: There is a lot more nuance than people are giving credit to the FHSA account, says Aaron.15:22: You could look at again going into your RRSP and then just deferring that tax, says Aaron.18:44: You can name a beneficiary successor holder, so successor Holder can only be your spouse or common law. If you pass, then your spouse assumes the count as an FHSA, rather than just liquidating the account and getting the money, but on the beneficiary side, this is interesting.22:04: As per Jason if he had FHSA, he would use that option to roll it over into a rift.22:58: If you have to be a first-time home buyer when you open the account the only other time that it makes a difference is when you try and make it tax free.24:49: If you had money in it's like how you get a double deduction so you get a deduction when you make an RRSP contribution and then the same money you could in theory withdraw through the home buyers plan.3 Key Points:To open an FHSA account you need to be a Canadian Resident, not a Canadian Citizen. You have to be at least 18 years old, and you can't be older than 71.Aaron shares few horror stories of kids in trust for accounts going sideways. He also shares the nuances and concerns of people that one should be aware of.If you name someone who's not your spouse, as a beneficiary of your FHSA they get the money, but they pay the tax too. The tax leaves the original account holder not dealt with in the final tax return of the deceased. The beneficiary pays the taxes, so it's kind of the opposite tax treatment.Tweetable Quotes:"FHSA works both as an RRSP and a tax-free savings account." - Aaron"FHSA is almost like the HSA in the US. The health savings account and it's tax deductible." - Aaron"The timeline for FHSA is really the same timeline as an RRSP 1871 and you need to be deemed a first-time home buyer." – Aaron"For someone who maybe doesn't have a lot of spare cash, that's a way to use the FHSA program without making kind of brand-new contributions." – Jason"If I do an RFP transfer cause maybe that's what I want to do, then I don't get 40, I don't get an additional deduction." – Aaron"I am not big in putting money in the hands of young adults until they've proven that they can handle it." - AaronResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Matt Lister, CEO of Cloud Advisors. It is a company in the group benefits space, and one of the unique things they have done is they have built a benchmarking system that helps inform business owners as to basically how their plans stack up against competitors in the same space and helps advise around best practices and design. Service is free for employers. Paid by advisors and providers.Episode Highlights:01:04: Cloud advisors use the Canvas employee benefits marketplace. Matt explains how they show employers how their benefit plans stack up.1.20: The number one reason why employers have benefits in the first place is to be competitive and what Matt has done is democratized access to benchmarking data.02:23: Every advisor got their own limited pool of experience regarding different sectors, different types of companies.04:58: Employers go through different stages where they don't need benefits perhaps when they very first started, they can't afford benefits and then they quickly start adding people and they get into a world where your benefits become table stakes. So, they become that checkbox.06:35: Matt explains how their system has options for employers that have no coverage, they can get a sample plan.07:17: Matt explains how their system intakes the benefits plan and breaks it down into hundreds of different variables that one can then compare by industry, region and group size.09:57: Matt explains how they developed the bar score, and it stands for benefits, action, retention, and it's like a credit score.17.14: Matt talks about the type is benchmark that they do. There are basically 2 types, he says.19:41: Matt talks about the database that they have built and how they segregate problems and solutions.22:30: Matt says that they recognize that business owners are busy, and they have got businesses to run, and insurance is only a small component of that needs to be done efficiently and effectively and conveniently.3 Key Points:Matt talks about the big determinants, basically how benefits programs get structured in terms of, different industries or different careers, different development stages, what are the big factors implemented that should be impacting, and how a plan is designed. Cloud Advisor has been in the marketplace coming up eight years and when they first developed the database, they had a very limited amount of data in it to perform the benchmark. Matt shares how they achieved about 15,000 employee benefit plans.Matt talks about the client output and how they visualize the actual results.Tweetable Quotes:"We show them how their current programs stack up by industry, region group size as well as how they can improve their program." - Matt"When I started in the industry, my dad had spent most of his career working for a public crown corporation with the incredibly robust union." - Matt"We will connect not just with the vendor and the vendors; information will actually perform an instant quote and an instant proposal so that the employer has everything they need to." - MattResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira talks to Brian Portnoy, Founder of Shaping Wealth and author of three books, including the must-read advisor book - The Geometry of Wealth. Brian is a well-known expert in the field of behavioral finance, and he will talk about what behavioral finance is and how it affects our decision-making and our relationships with the people advising us.Episode Highlights:07:16: We think of ourselves as kind of thoughtful, critical thinkers. But the fact is that the main elements of the brain are designed or evolved to basically regulate all the different biological or physical systems inside of us, says Brian.09:19: We see good financial planners enter their practices in day-to-day is dealing with people as who they are, as opposed to who in economics textbook said they should be, says Brian.11.21: Brian says that their brain is a gas guzzler, and it soaks up a ton of energy. It doesn't want to work that hard because we are constantly trying to be efficient, and in the way we use energy, it produces specific outcomes, especially in the context of our decision-making that are quite consequential.12:34: The brain tends to seek out information that merely aligns to what we were thinking before, says Brian.14:41: Jason has read in multiple places that the brain, when under stress performs worse and our IQ gets dumber when we are under prolonged stress and our ability to process information just diminishes.19.50: We need to stop pathologizing normal human behavior and just work with the people who show up in all their messiness and complexity, says Brian.21:27: Brian explains what they are doing with Shaping Wealth and how they are trying to move beyond that general construct of just understanding dump of information checklists.24:29: Each of us is born with a certain level of emotional intelligence, just like we have a certain IQ, and emotional intelligence is just not a trait that we're born with, it's a skill.3 Key Points:There is a whole stack of evolutionary remnants that are built inside of us that really do not map to the traditional economic man model.One of the unsung tasks of modern behavioral finance is that advisors get to know themselves as well or better than they are getting to know their clients and stop acting like some diagnostic expert.Positive psychology is a distinct field of psychology and the science of happiness. It's basically saying what are the inputs to a life well lived.Tweetable Quotes:"Behavioral finance is basically a science and a discipline that sits at the intersection of economics and psychology." - Brian"One of the key assumptions in traditional economics is that more is better, and from an empirical point of view, that's not the way we are wired." – Brian"If someone is coming to you because they think that you can pick investments better than the next guy, I think you have a competitive problem. But if they think that you are better at structuring the estate just perfectly, it's hard to distinguish yourself on those sorts of things." - BrianResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://www.shapingwealth.com/https://www.linkedin.com/in/brianportnoy/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Christine Brunsden, CEO of Benefits2, a web-based application designed to help people and medical practitioners identify disabilities that qualify for the Disability Tax Credit. It also assists them by saving time and money while increasing the rate of success when applying for the Disability Tax Credit.Episode Highlights02:56: Through her teenage years, Christine's daughter went downhill, and she ended up going through some really terrible stuff.03:52: Christine realized how hard it is for young people who are aging out of the system, they don't have the proper support.09:41: Christine shares an example of a woman who did her disability tax credit with Benefits 2 on January 31st.11:09: The hard part for everyone involved in tax refund is that nobody has ever taught anything about this in school.12:02: Christine explains how her platform helps people qualify for disability tax.12:45: The government tried to bring in the disability tax motors restrictions act and fix the fee at $100. 17:08: Christine thought the disability tax credit promoters were really predatory in nature, taking that big percentage.19:10: Christine is a huge advocate for diversity, equity and inclusion, and he is also a huge advocate for people with disabilities.24:18: The Canada Caregiver credit, medical expenses, and disability supports deductions home buyer's amount.25:09: 60% of all people who have the disability tax credit are over the age of 55, and the RDSP is not even a benefit for that.26:22: It's not a disability tax credit. It's really an enabling for people with ordinary everyday impairment to their activities of daily living.3 Key PointsChristine shares her daughter's ordeal and how her teacher called her out in front of all of her peers at the age of 6.Christine developed Benefits2 to leave more money in the hands of persons with disabilities and their supporting family members and to ensure Canadians have an option that complies with the disability tax credit promoters restrictions act.Christine explains how they created a platform, a complex algorithm in the background that once you have answered your questions related to your particular impairment, they write the application for success for you, you get a code and the PDF of the application and e-mail.Tweetable Quotes"My eyes are really wide open around the disability taxpayer." - Christine Brunsden"If we look at what happens with incontinence, well, somebody who suffers from incontinence is likely going to impair on their physical activity because of the whole leakage issue. They are probably not hydrating properly because of the leakage issue and that they will basically cause some other sort of disabling condition." - Christine Brunsden"Our marketplace will have diversity, equity inclusion, calendars that support all the different awareness dates throughout the country and internationally." - Christine BrunsdenResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWoodgate.com – Sponsorhttps://www.benefits2.ca/Podcast Editing Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Jamie Hopkins, Managing Partner of Wealth Solutions at Carson Group, a national wealth management firm that offers coaching and partnership to financial advisors. Jamie is a well-known personality in the US Financial advisory space and recently published a book called Find Your Freedom Financial Planning and Life Purpose.Episode Highlights:05:17: As per Jamie one must take care of basic level of financial planning, cash and flow, budgeting, debt management before one can move on to more complex financial planning, pictures, and strategies.07:21: Jamie shares his background story and the motivation behind writing the book.08:06: Jamie explains how they challenge people to write their eulogy.10:03: If you would change your whole life if that was the case, it probably means you are doing the wrong thing, says Jamie.10:32: Early childhood development is a lot more impactful than we probably give enough credit for, says Jamie.11:03: It becomes harder and harder to change people's behavior. We must change the environment or the situational factors around them to then develop actual change, says Jamie.13:31: In his book Jamie talks about scarcity that changed his view on money.15:29: Jamie explains how he and his mom encountered different experiences post his father's demise.16:35: Jamie talks about his childhood trauma and how he learned to handle money.17:22: Focus on the amount of money, you need to save, there isn't enough money. You can go to the richest person in the world, and they are still trying to save and accumulate more that will never go away.20:17: When saving money, if the focus is on accumulating, you can't get to an end number. It doesn't top out, but when you can start thinking about the impact you can have, you will find it to be meaningful.21:04: Community is such an important aspect of our lives in the world and there are great books and research and experts just on the aspects of community.28:16: Our purpose gets taken away from us, but we don't have to let that happen, says Jamie.32:09: Goals are mile markers along that way to your aspiration, says Jamie.32:31: Aspirations can change too; you don't have to be permanent on that.32:59: If you do not feel freedom in your life today, you don't feel financial freedom.3 Key Points:Jamie explains how people's upbringing around money can really impact the way they see the world around money going forward in their adult life.Jamie shares how important purpose is and how it affects different people and how people can take steps to prevent that gap in their life from existing purpose.Community is important, but it can also be very negative and draining and it can subtract from your life if you are not purposeful on it.Tweetable Quotes:"If you are living on the street and you just need to figure out where your next meal is, you're not worried about climbing Mount Everest." - Jamie Hopkins"You can just literally Google Carson group and blueprinting guide and you will be able to grab it and download it." - Jamie Hopkins"It's my legacy and when you remove that from somebody, it can take away a lot of their purpose, and if you're not intentional on replacing that purpose." - Jamie HopkinsResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInWebsite - Jamie Hopkins Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira talks to Vipul Jain, an accounting and tax consultant who helps business owners file for shred credits. Vipul explains what SR&ED, or the Scientific Research and Experimental Development program is and who qualifies, and how one can apply.Episode Highlights:03:57: Ask yourself these two key questions. The work you are doing, does it have some sort of technological or scientific innovation, and the code of your business? And are you experimenting with new ideas and approaches to solve problems?05:34: One of the key principles that must be involved in your work is the use of scientific process. The way you work should involve formulation of a hypothesis, testing the hypothesis and arriving at a conclusion.07:00: Imagine one employee is working on three projects. Two of them are routine quality testing market research, but one in Australia, that portion of the expense can still be claimed.07:33: Most business owners are to start off having no idea where to turn. This is which Fred Consultancy comes in the picture to help. 08:53: Vipul explains the process they follow and what documentation is required. 10:22: The CR that currently is promising a timeline of 90% of schemes will be processed within two months.11:10: You can get your money in 60 days, and then you can use it for literally whatever you want, like invest in a business, build a jacuzzi if you want.12:29: If you are smart about it, you think of that money coming in first and you basically float.13:46: If you are a start-up and if you are going for funding for you. They are basically venture capitalists, so you have to show the work you have done at different stages.15:41: Vipul explains the audit process of the SR&ED program.17:16: If you are claiming six month's worth of salaries, show me six month's worth of work.18:11: We might go a little bit back and forth with the CR, and everything is good. Usually it can pass through, but Vipul has seen teams come down anywhere from 20 to 40%. 19:53: There are three key questions the CIA asks, which is in the right form that you have to define what technological uncertainty you had.3 Key Points:SR&ED, or the Scientific Research and Experimental Development program, is a Canadian tax incentive program developed to encourage businesses of all sizes and in all sectors to conduct research and development in Canada.Vipul shares what makes you eligible and ineligible for applying to the SR&ED program. If you have a scientific process, that's the biggest chunk of you to prove what technical work you did, and how do you prove it?Tweetable Quotes:"Most government programs are typically focused on benefiting those who are actual resins." - Vipul Jain"Keep in mind when your tax here and you still have 18 months to file the team, and you can file it with your T2 data." - Vipul Jain"If you think you have a budget of 60,000, could technically hire somebody for 100K, get 60% back and your net cost is 40K." - Vipul Jain"I know many organizations where basically they have already factored it in as a line item on their revenue." - Vipul Jain"You can't pay yourself if you own more than 10% of the shares of the company as a contractor." - Vipul JainResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://vipuljain.ca/ Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Tanis Jorge, founder of the CoFounders Hub. It is a resource for helping understand how to come together as CoFounders in order to enable success. For those of you who have been in successful partnerships, it could be great for those of you who have been in unsuccessful partnerships.Episode Highlights:01:43: Tanis explains how he built three data-driven tech companies over the course of the 10 years with his best friend Stephen. 05:07: Tanis shares what people should consider at an early stage before starting any kind of partnership.06:37: Self-assessment is important, the first one is looking at yourself very deeply. Tanis has a product, and the Co-founders have called the self-assessment, and they walk people through the most in-depth self-analysis. 11:12: People just seem to think that friendship is important, and, therefore, it will solve the problem.13:19: Communication and being intentional with the partner is the biggest insurance policy.14:00: Scaling is a big issue sometimes. As a company grows faster and faster, it gets bigger and bigger.16:58: If you can put the business as the central figure in your relationship, then emotional decisions have less bite.18:15: Be clear, having that Depersonalized question doesn't mean that both people are going to agree to that some.19:25: There are contracts and agreements and clauses that one can put into a partnership agreement, and you do that in the very beginning.21:17: Tanis' friend Tom Dean's has written a book called Every Family's business, and at the end of it, there are some 12 questions that you should be asking yourself on an annual basis.25:23: If you encapsulate everything you do what you know, what are the key pieces of advice you are trying to sum it down to when it comes to basically getting involved with the co-founder.27:40: Tanis shares his views on what's involved when the partnership goes wrong, and someone wants out.3 Key Points:Tanis explains how he conducted a detailed survey and launched the book the CoFounders Handbook. Tanis advises people to have a very clear picture of what they bring to the table and to really analyze how this will affect the partnership.Tanis recommends building a trust in your partner where they know without a doubt that the person is getting things done as well, and they don't have to question and go what they do today.Tweetable Quotes:"I get asked to advise on frequently, and what happened was I was approached often by founders who were in partnerships, and they said, look, you've got a track record how is it that you and your partner are still friends?" - Tanis Jorge"People invest a lot of money into their businesses, and you really don't want to just offhandedly jump into something where they will be a key factor in your success." - Tanis Jorge"As much as I love to see successful entrepreneurship, I hate to see things blow up, which can happen too often." - Tanis JorgeResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIncofoundershub.com Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira talks to Grant Hicks, a known financial advisor coach who has been out there basically helping advisors build better practices. He is going to share more powerful and more effective means or strategies that he has seen advisors put in place for business owners that have really helped elevate their business practices.Episode Highlights:01:07: Grant has been in the industry for 33 years, he now focuses on practice management and all facets of practice management.01:35: He is going to share a story of one of the advisors he has worked with and their mastermind group, how to build it, and how to manage it.03:24: We are all business owners, at the end of the day, working on our businesses together. 04:30: Every business has different issues that they are working with.07:35: Grant talks about processes and running effective processes and how do you map with the process.09:53: The HR piece is fascinating, and it's invaluable there because you probably have multiple real time experiments going on, says Grant.11:04: The more time you give something without a deadline, the less like it is going to get done, you give it a deadline and it gets done.12:32: Grant explains how he works through the succession and transition issues.15:11: Grant talks about various priority changes in any business.15:47: Grant talks about the different success stories.16:58: Everyone thinks their baby's pretty, especially when it comes time to put a price tag on it and get the entire endowment effect to play there. But reality is, it doesn't matter people are going to judge it for their own what they consider beautiful.21:02: This is the long game where you are trying to find the ideal clients, and you are trying to find your ideal niche, which would be probably business owners that are selling their practice, and it's the long game where you are getting to help solve the problems.22:30: Benchmarking is used for financial advisors, but we also use benchmarking for business owners and you could look at how benchmarking is used as a tool to help people guide them as well.3 Key Points:Jason and Grant talk about succession and transitionGrant shares what is a very common challenge for most business owners today in the economy.Grant shares how mastermind group is contributing to bring together a bunch of people who have walked a bunch of different paths. It may or may not be relevant to what you are looking for, but can definitely help.Tweetable Quotes:"We are going to talk a bit about today is the growth aspect of growing your practice." - Grant"I have a weekly poker match with a bunch of buddies from university, and they are at different executive positions, and you listen to the different changes in the work life during COVID, and the entire remote work thing saw a massive productivity spike." - Jason"God knows the statistics on succession are not great. I remember, even in our industry, I have heard statistics in the US say the average successful session takes about seven years to nail down and get completely done, start to finish out the joke that failure Is a lot quicker than that." - Jason"Some people are spending a ton of money on marketing and SEO and different Internet strategies." - GrantResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInadvisorproductmanagement.comadvisorpracticemanagement.comhttps://mobile.twitter.com/davideedey Hosted on Acast. See acast.com/privacy for more information.

On today's episode, Jason is going to talk to Dennis Moseley-Williams. He is a well-known speaker in the financial advisor circuit who talks specifically about how advisors should transform their business to be based on experiences that deliver true value and enlightenment and transformation to clients. Episode Highlights:1.47: Dennis and his partner Tom and own a small boutique firm and we work predominantly in the financial services industry, helping practices, financial planning practices, create more client value by innovating around customer experience and design and layout. 03.28: Most people in business confuse service with experience. Service is all about saving customers time and effort. Whereas experience is about creating engagement through surprise, emotion and at times even providing transformational value. 7.56: Dennis gives an example of his dry cleaner and how he has a flourishing business even though he has a tiny little shop. His customer service is good. He knows every person who goes in. He knows all his customer's name. 09.53: As per Dennis it is important to know who your client is. Slow time down, don't think efficiency, think memorable. 14.12: Every one of us that owns the business is living in the age of Amazon and anything anybody wants, including a hammer from the hardware store can be delivered to their house by 8:00 o'clock tomorrow morning. We as consumers are already spoiled rotten. We live in magic times, says Dennis. 17.19: Consider your client's journey from before they ever come to your business to entering your business to engaging with your business to the end of the engagement, the transaction and finally extending afterward when they are reflecting on their visit. 18.18: Ask yourself through time of your client journey. What do you do really, really well or well enough? And how could you do it a teeny tiny bit better?22.02: Dennis shares different customer experiences and how different service provider can improve their processes.24.38: Efficiency is the enemy of experience. As a business owner we always just do some basic math and calculate time and money. Efficiency is the enemy here because it results into crappy commodified experience.3 Key Points:Dennis shares some examples of some delightful engagements that he has seen on things that people wouldn't normally expect.Dennis talks about the types of loyalty by fear and obligation as well as by connection and identity. Dennis shares 3 important questions that you can ask yourself so as to make your client experience better.Tweetable Quotes: "The guy that owns the hardware store is trying to pick a totally generic business, believes that the smartest and best thing that they can do is make it easy to get in and get out with a hammer." - Dennis "There are frameworks, there are frameworks that you can use for experience design."- Dennis."If you go to Disney land, you should be able to extract the principles of what they have done and apply it to what you have done 100%." – Dennis"It doesn't matter what your business is. I could literally create revenue in it without having to spend any money just by having you change the way you look at time." -Dennis. Resources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

In today's episode we have David Edey, CEA and financial advisor in Montreal. He is an author of a book called Executor Help. He is on the show to talk about what it is to be an executor and how an executor can have a successful execution of someone's will in both cases of if you are a business owner and if you are not. Episode Highlights:1.01: David is a certified Executive Advisor. He has been in the financial planning industry for over 35 years in Montreal. He is an author of a book, Executor Help - How to settle on a state - pick an executor and avoid family fights.2.30: The executor is going to be the individual who's going to make sure that the person who has written will, their wishes that's written in the will is going to be carried out.4.16: As per David you want to prepare your executors as much as possible, but you also have to have the conversations with them. You have to let them know what your wishes are, and you are going to make sure that you help them with a bunch of professionals around them.6.10: When there is a death in the family or there is a death, people are traumatized, and you can be fumbling around looking for things when you are traumatized.08.20: As per Jason, people's perception of what's fair can change over time and he finds that in the end of the life of a parent you never have an equitable split in terms of time supporting that parent amongst the kids.10.24: People lose their minds and there's a sense of entitlement all of a sudden when it comes to an estate.12.06: As an executor, you also have to understand that there is legal liability for you to make sure that the estate gets settled, make sure that the taxes are being taken care of, and also to keep yourself from being litigated by the beneficiaries.13.35: Don't pay any beneficiaries until you've taken care of all of the debts and the taxes, because if it comes back that the estate owes money, try to get that money from the beneficiaries. 18.15: As a business owner, if you don't think about what is going to happen to the business in case something happens to you suddenly, you are leaving your family in chaos. You are leaving them disorganized.20.32: As a business owner you need to have some sort of plan in terms of what would happen if something happened to you. You need to create an estate plan. You need to create a succession plan and update it regularly with lawyer and accountant.3 Key Points:David talks about the role and responsibilities of the executor and what needs to be done to make sure that this is a success.David talks about preparation of the estate and how we basically set the stage for success.It's very important to make sure you are working with an accountant that is professional because they can make sure that the taxes and debts are paid first before you start going out any of the cash.Tweetable Quotes:"99% of the individuals who are left to be an executor have absolutely no idea what to do or where to start." – David"The reason for the book is to get people to make the moves, to have the will and also have the conversations with the executive." - David"You really don't know about somebody until you have to share an inheritance with them." - David "While the individual is still alive, I would suggest having a conversation with their executor, but also have the conversation with the beneficiaries or family members. And this is probably a touchy point for a lot of people because people don't want to have those uncomfortable conversations." - DavidResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://www.davidedey.com/https://mobile.twitter.com/davideedey Hosted on Acast. See acast.com/privacy for more information.

Jason talks to David Barnett; a private transaction advisor. Today he is going to specifically talk about acquisitions, but not from the seller's point of view, but from the buyer's point of view. Episode Highlights:2.30: David says that he works with business owners who realize it might be faster and easier to grow through acquisition. Another pool of buyers are people who work someplace and don't like it and typically these people are sort of in the Middle age group where they have got mortgages and families and maybe children and they realize that if they want to pursue their entrepreneurial dream the risks of a startup may just be too great, but if they buy a business, they can become an entrepreneur without the risk of starting up. 06.04: In the world of acquiring businesses, we often hear about EBITDA earnings before interest, taxes, depreciation, and amortization. We hear about EBITDA multiples, and in the mid-market space people toss around ideas of what businesses are worth various multiples 4,5,6 times or what have you. In the world of main street businesses, we use a different level of cash flow is called SDE - Sellers Discretionary Earnings and it is the total amount of cash flow available to an owner manager who works full time in the business.14.36: If you double the size of your business by buying an equally sized company in another city and you double your volume of purchasing, you might not increase sales, you might not increase margins, but you might be able to increase your leverage with suppliers. 18.46: When there is momentum in the transaction, when the buyer is eager and they want to make a deal, it benefits the seller to be ready to feed that desire with all the information they're looking for so that you can move quickly.25.02: The reason someone is buying the business, the reason someone is going to be willing to pay some amount of money towards the goodwill that's been built into the business, is because they want to avoid the risk of a startup, says David. 31.02: When you go to do the due diligence on that business, what you do is you, you check the bank statements to make sure the deposits are all correct and then you go through the box of invoices from all the suppliers, and you add them all up and you compare it to your income statement. If it looks kind of closely then you can be reasonably certain that the financial statements are likely close, but they are never exactly correct.3 Key Points:David explains the details between EBITDA (Earnings Before Interest, Taxes, Depreciation, And Amortization) and SDE (Sellers Discretionary Earnings).David talks about the factors that prompt a seller to sell their business. David shares how a buyer has to be ready to be able to deal with the unknowns and a lot of the times those unknowns are managed through the structure of the deal.Tweetable Quotes:"Economics of buying a job is different than the economics of - hey I have got an enterprise already in place I am buying your client list right at you know will be preferred to as a strategic buyer." - Jason"I have also had clients who have mailed out letters in more than two years later, people have picked up the phone and reached back out to them." - David"A properly prepared buyer knows that there are always going to be these unknowns within the diligence." – DavidResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Aaron Hector, a private wealth advisor for CWB wealth. He is here to talk about old age security. Episode Highlights:1.09: Aaron is a financial planner. He works with CWB wealth, and the majority of his time is spent serving private clients and helping them out with their retirement planning and taxes.1.55: Aaron has been one of the few who spent time writing about old age security topic that is an overlooked benefit compared to the Canada Pension Plan.2.12: Old age security pension is a government pension. You need to be at least 65 years old to begin to receive it and it's for those who have residency within Canada, either current residency or former residency, you need to have lived in Canada for at least ten years after you are 18 years old, says Aaron. 5.04: You get an extra .6 of a percent by choosing to postpone your starting point. If you start at age 66 instead of 65, you get an extra 7.2%, says Aaron. 7.37: For every dollar above your net income exceeds, government will take away 15 cents of your old age security. Technically it is a recovery tax and people refer to this as a clawback, says Aaron. 10.27: Aaron explains what are some of the ways that a family or couple or an individual can minimize their exposure to all these security paybacks?12.13: For people who have their own corporations, especially for small businesses who don't have revenue over 500K, they are going to be paying dividends to themselves as a non-eligible dividend, says Aaron. 17.06: If you have got a lot of health issues prior to making the decisions, then it's kind of hard to make decision for OAS, says Jason. 18.13: For every year that you live, your life expectancy increases because you are part of the survivor pool.19.42: Aaron talks about some of his better or favorite tricks or unique planning opportunities that are uncovered when it comes to deferring past 70.20.26: The whole amount to the lump sum plus the ongoing monthly payments that you begin to receive after OAS is taxed in the year you get the money, says Aaron.22.36: If you are at 71 and you forgot your OAS all the way through 70 and now you are going to apply retroactively, your one-year reach back is going to be at the age 70, says Aaron. 28.23: The government did increase the amount payable to people of age 75 and older by roughly $80 roughly per month from October 2022 and this was the first meaningful change to OAS payments amount in very long time.3 Key Points:Once your net income exceeds a certain threshold government begins to take away your old age security benefit and that threshold for the year 2022 has been set at $81,761 per person, says Aaron.Clawback is something that grinds people because there is a disproportional amount of time relative to the amount of dollars that can be saved spent on planning around all day security.If you think you are going to live to 75, don't postpone OAS, take it at 65 when it's on offer. If you think you're going to live to 90 you are probably wise to postpone it to 70.Tweetable Quotes:"You need to have at least 10 years in Canada to qualify, but 40 to get the regular payment." – Aaron"Effective rates of tax are more important than marginal rates." - Aaron"You also have a one-off strategy around how to structure your estate in some cases, speak about that." - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInhttps://www.linkedin.com/in/aaronhector/?originalSubdomain=cahttps://www.cwbwealth.com/en Hosted on Acast. See acast.com/privacy for more information.

Jason talks to Doug Runchey, owner & operator of DR Pensions Consulting; he's a foremost authority when it comes to understanding CPP. Episode Highlights:2.06: Doug started his consulting career 10 years ago on Canada pension and all the age security, but primarily Canada pension.03.38: You pay for Canada Pension Plan if you have earnings from employment or self-employment. Those are the only two incomes that you can make in CPP contributions.07.34: Talking about the CPP rates, Dough says that the benefits were going to go up from the 25% earnings replacement formula to a 33.33% earnings replacement formula. And that's what has resulted in the most recent increase basically being staged over five years. From 2019 through 2023 an increase of 1% for each of employer and employer, up from 4.95% to 5.95%.13.10: If a person is working from the age of 18 to 22-23 in school, barely earning any money, and that is counting against his/her average, that's not great, says Jason.17.07: If you are going to stop working and you would have drop out. You can end up with a better calculation of your average income by following few simple methods.18.29: The first step in the process of the calculation is to bring all of your lifetime earnings up to a current year value. In the way that occurs is whatever year your benefits start, you take the average YMPE for the five years ending with the year that your benefits start, says Doug.20.25: A pension is 50% higher if you wait five years. That is, government backed and guaranteed for life.22.52: If you have worked five more years until 70, you can take those five years of maximum earnings, replace five years of zero or lower earnings and increase your average lifetime earnings significantly, says Doug.31.27: The CPP retirement pension, as we say started at 65 or as early as 60 prior to that. If you become disabled while you are working, there is a disability benefit under CPP. 35.00: If you have got your own corporation and you have the choice to pay yourself a salary or pay yourself dividends, then if you pay yourself. Salary. You are paying the CPP contributions both as the employer and as the employee, so you are paying both halves of it out of the company somehow. But if you pay yourself dividends, you don't pay CPP contributions, then you don't have a pension at the end of it, says Doug.3 Key Points:Dough talks about the contribution rates in the Canadian Pension Plan, what are the contribution rates today and where are they scheduled to go?Doug explains if you want to take your CPP earlier than age 65, there are a couple of things happening. First of all, your calculated CPP, meaning your 25% of your lifetime earnings are calculated at the time you take your benefits.If you don't take your CPP and you keep working beyond age 65, you can use each year of earnings to replace one of your earlier years of lower earnings, explains Doug.Tweetable Quotes:"The contributions are the only incoming money to the fund except for the reinvestment of those contributions and that's all managed by us." - Doug"Even if you are paying a fairly high tax rate on your CPP because you are still working. And you are the sources of income. Doesn't mean you still don't take it early." - JasonResources Mentioned:LinkedIn – Jason Facebook – Jason Pereira's Facebook Hosted on Acast. See acast.com/privacy for more information.

On today's episode Jason Pereira talks ESG (Environmental, Social, Governance) with Daniel Jacob, founder of Changing Habits Solutions. Changing Habits is a market leading ESG Consultancy that helps businesses incorporate ESG and sustainability strategies into their business model.Episode Highlights:0.57: Daniel says that they help companies integrate environmental social and governance metrics inside their day-to-day activities and operations and identify the strategies to improve their ESG performance over time.3.01: E stands for environmental and it addresses the impact on the physical environment and the risk of a company and suppliers and partners from climate and related environmental events.10.44: Diversity, equity, and inclusion matrix are associated not only with the gender profile of the organization, but by category or by seniority within your organization, says Daniel. 13.07: Investors are increasingly looking to D risk their portfolio and by showing that you have a good control on the ESG risk that means that you are a better investment opportunity, says Daniel. 14.58: For every risk there is an equal opportunity. If you take climate change as a risk perspective and start to assess, how can I reduce my emissions into carbon credit this is a potential revenue generating scheme, says Daniel. 22.01: The society issues that we are currently living in, it forces us to change, and the suitor will change the easier it will be down the road. The more we are trying to counteract influence or transition, the more painful it will be down the road, says Daniel. 3 Key Points:There are over 1000 different metrics or issues under ESG combined. You want to make sure that you focus on the top ten or twenty on which you can have a material impact, says Daniel.Daniel talks about how you establish and use ESG metrics and how they are different from any other business key performance indicators that they may utilize.Daniel talks about the actual net reciprocal benefit of ESG. He shares what is the feedback cycle on this underlying business metrics that really matter to business owners which is profitability, costs and revenue?Tweetable Quotes:"If you are going to do something about sustainability in your own company, you are going be asking to your suppliers to get to the same level as you." – Daniel. "We have been operating in a way that doesn't consider the environment. We depend on to survive at economies and societies." – Daniel."As investors, we should be empowered with as much information as possible to make decision for someone who might invest in." - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInDaniel Jacob – WebsiteVisit Changing Habits: Changing Habits Solutions - ESG ConsultantsBook A Free ESG Consultation: Calendly - Daniel JacobFull Transcript Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira talks to Jeff Cullen, Owner & Lead Consultant at Basecamp4; a company that specializes in exit planning. Episode Highlights:1.05: Exit planning is an emergent specialization in management consulting. It is particularly being driven by the saying that time is running short for a lot of business owners.1.54: The whole idea behind exit planning is to maximize value and basically get the most successful exit plan or exit from your business as possible, says Jeff. 3.42: Exit planning institutes have done tons of research on the numbers of companies that don't successfully exit, and it's a pretty shockingly high number.6.11: You can't manage a 25-to-35-person company the same way that you can manage an 8-person company, and that is one of the first steps where owners may run into problems, says Jeff. 6.57: Jeff shares how he starts assessing business to understand where the holes are. What does his process look like to understand what's going on with that business?7.11: The business assessment method that Jeff uses is a lot more holistic. They have three-legged tools which are basically the business, the financial plan for the individual and their family and then there is also the personal side.10.04: The assessment is done in a way that everything is kind of transparent and there is a logical progression where most owners know how they are performing, says Jeff. 12.33: When you do exit, it's not a disaster. If any exit happens unexpectedly, the company can survive, says Jeff. 13.42: Jeff shares in terms of fixing gaps, how much resistance does he sees on an average to acceptance by business owners?15.29: As the biggest business starts to run better, become more systematized and the owner moves into a more of a strategic leadership position frustration gets reduced, says Jeff.19.32: If an owner doesn't have a financial planner or if the financial planner, they have is someone they have been using from their 20s and not working as desired Jeff would probably raise the idea of, we want to connect you with somebody who is a bit more sophisticated.20.50: Jeff is making sure that he is helping business owner set up themselves for successful exit when the windfall comes and it makes perfect sense, says Jason.26.06: Jason advises everyone that do not deal with generous lawyers. Deal with specialist lawyers who do or handle the expert cases all the time. 3 Key Points:Jeff explains how exit planning is for the most cases is no different than business planning.Jeff talks about the gap analysis that he conducts and how he explains to business owners what it takes to go from the two to the 4X multiple and how they assess those gaps.Jeff answers how many people in Canada take well to the fact they are telling their baby is not pretty if baby is business?Tweetable Quotes:"Everybody exits at some point. You can either do it vertically or horizontally, it's your call." – Jason"Being in control, getting the outcome you want and not having to compromise significantly can be defined as a success." – Jeff"There are any number of times where professionals will outgrow the advisors that they are dealing with, whether it be financial advisor or account boy." – JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInJeff Cullen – WebsiteTranscript Hosted on Acast. See acast.com/privacy for more information.

Jason Pereira talks to Jason Watt. He recently was part of the sale of his family business. Today they will discuss the tales of what it's like to sell a family business. They will also discuss the ups and downs and unexpected turns that may be included in that. Episode Highlights:1.06: Watt trains financial planners and he was never a financial planner previously. He was in the military till 2006 then he entered the family business.1.58: Watt says that they had a pretty good transition as far as family businesses go and in 2018, he became CEO of family business. There was no friction back and forth about control from the elder generation to the younger generation or any of that kind of stuff.4.33: The due diligence process must have alerted Jason Watt to issues and deficiencies that he had and that he needed to get cleaned up prior to any kind of sale, says Jason.7.15: There was a very short meeting in January 2020 with local company Yardstick and Jason Watt talked price a little bit just to kind of get a feel for whether it would be enough money for them to consider a deal seriously and whether the price would be right for the buyer to make a deal work. 12.37: The working capital is important to business as any talent they have or any equipment they have acquired because it is also a part of the factory process.15.36: Jason Watt talks about the negotiation of the deal. What is the methodology of price negotiation, its timeline and how that goes?18.38: Jason Watt doesn't have a big product liability concern or anything like that and in fact there was a sort of pro buyer reason for the share sale because there are a bunch of regulatory approvals that go along with business.20.10: Jason Watt shares after the negotiations stage, how long does it take to come to the final contract. 23.01: It took six and half months from negotiation to final conclusion and Jason Watt thinks that is a reasonable time frame. It should have closed a month earlier than that if they hadn't had that sort of shareholder reorg snag.31.20: Jason Watt faced some complicated tax issues where his accountant helped him to resolve the issue. 32.59: The due diligence process is a two way as much as you should be, you know going through and providing a lot of information about your business, you should be learning about the business that's acquiring you, says Jason Watt.3 Key Points:If the parents are deeply entrenched within the business operation or the value relative to cash flow is not something that's going to work out over a reasonable amount of time then you do have to consider a third party, says Jason. Working capital adjustment, shareholder loans and all similar things were things that Jason Watt wasn't as prepared to deal with because they were pretty good about sort of operational metrics.Deal with specialist lawyers and people who have been there and understand the process well before.Tweetable Quotes:"When it came time to talk about their retirement meaningfully, we really had to look at a third-party acquirer." – Jason Watt"You wouldn't sign the letter of intent if you are not seriously intending to proceed." - Jason Watt"As long as you are earning income going forward at a reasonable level, you actually get that credit back." - Jason PereiraResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInFull Transcript Our GDPR privacy policy was updated on August 8, 2022. Visit acast.com/privacy for more information.

On today's episode of FPCBO we have brought back Cato Pastoll from Loop. This time he has got a new product that he is basically working with that solves a very simple problem - Opening of bank accounts for Canadian businesses in the US. Episode Highlights:1.19: Cato says that early this year, they launched Loop card which is a multi-currency card that allows users to spend in different currencies. Then more recently they launched the loop accounts product which allows users to open accounts in different currencies so a user can do business more seamlessly around the world.5.48: If you get paid in the US dollars with bank account in Canada, bank will convert the money at that point, and they will often add markup as much as 3% on every dollar that you earn. 6.33: We do a digital onboarding process like many other Fintech products. We collect information on the company, fill online application forms, and have business names and address. We collect information on any directors of the business as well, explains Cato.7.12: When you fill some information on the form, and we say you are approved and then once you are approved and once you have the ability to access an account with us you can then go and click on a button and get access to international account details all through platform, says Cato.7.35: Loop card is a multi-currency card that allows you to spend money in different currencies, and one of those currencies is the US dollar.8.10: We allow you collect your money in the US dollars that you can keep as US dollar revenue in USD and then you can use your loop cards to go and spend those US dollars for your expenses in USD, says Cato.9.32: When people encounter the problem, they can go to go to your website, set up an account, get a card and deal with all their American currency build business needs on one end of the border and then bring it back over whatever is left over.11.38: The four products we have are multicurrency accounts product, multicurrency card product, our payments product and then we also have capital product, says Cato.3 Key Points:In the pandemic companies were thinking to go into local bank branch to get them to open a US account but bank told them, we have a branch in the US however, to open up this account, you are going to need to drive to our nearest branch in the US, says Cato.Cato talks about a multicurrency card. He explains how that works and how it ties into your account. We call ourselves kind of a bundle banking platform and the reason we use that terminology is we kind of try to do everything in one place. We try to make all the different products and services that a company needs available to them through Loop, says Cato.Tweetable Quotes:“Canadian companies do not set up to get their domestic branches to basically be foreign branches of American banks.” – Jason“We allow you to collect through US dollar revenue and if you need to make $50,000 wire payment, we can convert the money to RMB for you and allow you to wire that money to anywhere in the world.” - CatoResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInCato Pastoll – LinkedIn | WebsiteFull Transcript See acast.com/privacy for privacy and opt-out information.

Today we have Terry Ritchie. He is Jason's go-to guru on all things for American Canadian cross border, and also a friend. Terry is a vice president and partner at Cardinal Point Capital and Cardinal Point Wealth Management, a cross-border or ICPM firm specializing in the cross-border space.Episode Highlights:1.41: Terry's responsibility as one of the private wealth managers is to work with typically private clients and individuals with cross-border issues.4.29: In Canada, if you die and do not leave things to your spouse, you must pay all reliable due taxes. Whereas in the US, it's not the same.5.08: In the US, most of the folks who in prior years would have been exposed to the significant estate tax are now off the rules because the tax exemptions have crept up over the years.13.51: Whenever you are over the $60,000 threshold, that's your barometer in the US to determine whether you are filing a requirement. There may not be a state tax at the end of the day, but there may be a requirement to file, says Terry.15.37: The closest counterpart to the tax-free savings account in Canada from the US perspective would be a Roth IRA.16.13: If you do anything like an American in Canada, like setting up a bank account or tax-free saving account, additional compliance requirements must be dealt with on the US side, says Terry.21.03: Framing taxes as a cost-benefit is a way to get around where the breaking point is or where the client wants to make the call for assets, says Jason.26.43: If you are an American Canadian and you have got some property, and if there may be some tactics closure on the US side or you remotely cell it, it's good to keep track of any improvements and receipts when you did it.32.09: We need to think from the IRS and CRA perspective that there is going to be withholding tax requirement that could come into play here when a Canadian ultimately sells their property, and that process can be very, very timely, says Terry.3 Key Points:If nothing changes on the gift and state rules and other tax rules that were put into play here, from the end of 2025 to the beginning of 2026, the estate and gift tax exemptions and income tax rates will go back to what they were ten years ago, says Terry.Terry talks about the fact that Canadian citizens who never have been American could also find themselves on the subject of the US estate tax.Some people decide to go to Florida, Arizona, or wherever and want to buy a place. Terry explains what should they be concerned about, and what are the best practices to do that?Tweetable Quotes:“Snowbirds or non-residents in the United States have a non-resident state tax imposed on them if they own certain kinds of defined as a US set of assets.” – Terry“People don't realize that assets are not just stock. It can also be Canadian-based mutual funds and ETFs that qualify as US assets.” – Jason“Sometimes, it may make sense to hold assets on a joint base and then have transferred death deeds after that.” – TerryResources MentionedFacebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInTerry Ritchie - terry@cardinalpointwealth.comFull Transcript See acast.com/privacy for privacy and opt-out information.

Today, we have Shane Slater, Corporate Currency Specialist from FirmaFX. He talks about foreign exchanges, how it impacts business owners and how you can do better than just taking what the bank or your credit card will give you.Episode Highlights:1.15: Shane is a corporate currency specialist which means he helps SMEs who get exposed to international business and FX dealings on a regular daily business.1.44: We are reducing the margins that the big banks are typically known for and providing services or advising when the rates may go in the company's favour and when there is an opportune time to do an exchange, says Shane.4.09: The exchange which is in labor intensive and there is no material cost is quite excessive. You can get well under 1% depending on your volume and its better ease and convenience type situation, explains Shane.4.26: The exchange rate is what it is, but if you are losing 3.5% on hundreds of thousands or millions of dollars each way from your profit that should be going to your pocket to reinvest in your business is not good.5.33: On the minimum about $10,000 per transaction is a point where you are going to start saving 2 to $3 per transaction using a broker from FirmaFX, says Shane.06.00: Shane talks about the challenge for business owners in international wire transfers and how he helps them with that. 10.12: The currency hedging is the idea to guarantee you price point for at least some of your exchange so that you have the peace of mind of knowing exactly what you're going to pay or exactly what you're going to receive. 15.24: Jason explains that you don't have to be able to calculate all the stuff in hedging transactions because in principle the contracts are very straightforward for people.3 Key Points:Shane talks about the costs associated to the consumer or the business owner when making a currency exchange.Hedging is basically a process where you eliminate risks. Shane talks about what can be done to mitigate the risk of fluctuation of currency when you have business in one country, and you are delivering stuff in another country.Hedging strategies change depending on every single client's position and need like what are your potential waters or what is your actual margins. If you're a tight margin business, Shane recommends hedging a good portion of your FX.Tweetable Quotes:"We are able to save companies not just money, but time also that they can then put back into their business and doing what they do best and help them grill in a multiple of ways." - Shane"Some businesses consider hedging like gambling, but it's the exact opposite. But the general concept is you are exposing yourself to sometimes millions of dollars throughout years on a FX rate and they are budgeting this FX rate for your currency exchange." - Shane Resources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInShane Slater – LinkedIn | Website Full Transcript See acast.com/privacy for privacy and opt-out information.

Today's the 5th part of a series on understanding financial statements. Episode Highlights:01:10: Different provinces have different amounts. Today, on top of that, anywhere from zero to 4%, depending on what province. One will actually apply that zero percent rate up to 600,000, but for all intents and purposes, the half $1,000,000 mark represents a small business's income. 03:40: $500,000 is a business limit or exemption. So, for the first $500,000 you get to pay the lower rate, but if you have more than $50,000 investment income. They start taking back the amount they start, reducing the 500,000 at a rate of $5 for every $1 earned in passive income.08:14: The first national account is the general rate income pool. You may realize that there are actually 2 different tax rates payable on dividends in Canada.08:33: There are three depending on where they came from. The third one is that foreign dividends that are not considered eligible for dividend tax credits. So, they are basically taxed as income.09:58: The general rate income pool is a calculation of the money that you pay tax on or the income that you pay tax on at the general rate. So, anything that wasn't the small business rate is the pool of money that you can distribute as an eligible dividend. 11:53: Any insurance proceeds from the death of an individual above and beyond the adjusted cost basis are considered a game. They flow into the CDA. Why does the CDA matter? Because the CDA is an amount that the individual can draw tax-free from the corporation. 19:05: RDTOH allows you to take money out at a tax preference because you've already paid some of the tax and get some tax refund.21:19: Why does this number matter? This number matters if you have a corporate structure in place. If you have two corporations, one corporation owning another, and you want to transfer money between these corporations, you can transfer by way of intercorporate dividends.3 Key Points:In 2018, there is a tax change that happened that basically will change your tax rates corporately for passive income. Total passive income or what's known as aggregate investment income exceeds $50,000 and it will increase. You will pay an increase straight up until about $150,000, which will go back to normal.Why would the government allow you to take money tax for you to be a corporation? Let's look at investment capital gains. Half of it is tax free, there is no real difference there. It's going to result in you paying the same tax that you would otherwise. So, if you take a capital gain and pay 100% of the proceeds out and you end up paying at most 26%, Insurance is different.The purpose of RDTOH is to extract the corporation of the companies, the government, extracting more income from you corporately now than they would if you paid to yourself personally. If you pay it to yourself personally then they refund you the difference.Tweetable Quotes:"The eligible dividend is basically the dividend paid after tax income that paid the general rate that paid the higher the two. So, if I pay a higher rate corporately, I pay a lower rate personally, if I pay a lower rate corporately, I pay a higher rate personally." – Jason"Insurance is different because the CDA is a mechanism for flowing out the gains tax-free to the shareholders." – JasonResources Mentioned:Facebook – Jason'sLinkedIn – Jason'sFull Transcript See acast.com/privacy for privacy and opt-out information.

Today's the 4th part of a series on understanding financial statements. Today, Jason focuses on cash management and working capital because cash is your lifeblood of a business.Episode Highlights:03:16: Profits are priority, not the leftovers. You have to have your expenses controlled such that you hit your target profit because all too often most businesses look at profits. They wonder why it doesn't grow, it doesn't grow because you are now focusing on growing the revenue and shrinking the expenses relative to that. 04:09: Jason suggests you should be pulling money into four other accounts that are earmarked for money that is not actually yours. What are those four counts? The first is profit. It is your money down the road. But what they are saying is whether it's once a month or twice a month. Whenever you get paid, you get to move over whatever percentage of profit you're trying to make into that. 05:43: Something is broken with your revenue model, something is broken with your operating with your expenses, but your product, you are going to hit the target profit. You have to make that work. This is a methodology that is also investing called reverse budgeting. You are taking all the savings and investing. In this case the profit off the table. We're also taking it off the fixed expenses.07:31: Jason gives his insights on how much cash needs to be invested in the business in order to make sure you can operate? How do we answer that question? How do we move, modify working capital? Start off with the current assets, consider what's there, Cash is the goal. So short term investments in deposit accounts, financial savings accounts, money market funds, whatever else it is in order to basically help you meet those needs, that's ordered a little bit of interest. That's fine inventory.11:08: Your current portion of your long-term debt and interest payable, is the money that is due in the next 12 months. You can work to minimize that by reducing. You can't work to minimize that by potentially refinancing. If you can stretch out the loans that you were taking out, you can basically reduce that which reduces your need for cash, and you need cash investment.3 Key Points:Jason explains what basic accounting tells you. It tells you that your revenue minus your expenses equal your profit. Working capital or net working capital is the difference between your current assets and your current liabilities list, it's a measure of the company's quality and operational efficiency as well.Accounts receivable is the money that's owed to you. The shorter the payment terms on accounts receivable, the faster that money converted to cash, the longer the slower.Tweetable Quotes:"You should have your payroll account. Have a separate bank account just for payroll. You make sure you move the amount for payroll over there every month." - Jason "You don't want a lot of good sitting around. You can make sales, but not so much that you are taking six months to sell it all if it's something small. If it's something big, you may not have a choice, but optimize inventory accounts receivable." – JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInFull Transcript See acast.com/privacy for privacy and opt-out information.

Today is the third part of a series that Jason is doing on understanding financial statements. Today, is about accounting ratios. Accounting ratios are used to analyze your business in several different ways. First, it's helpful to track the performance of your business in multiple different facets, from its solvency to its profitability to its efficiency. It also is a valuable tool if you can combine comparing the help of your business with another business.Episode Highlights:1.58: Liquidity ratios measure how effectively the company can repay both short- and long-term obligations. The most important ones tend to focus on current long-term liabilities.3.22: When you sell a product from inventory, you sell out a profit that is not reflected on the balance sheet.4.23: The cash ratio carves all current assets except for cash and cash equivalents compared and devised by current liabilities.5.45: The leverage ratios measure the amount of capital that comes in the form of debt. It's basically how much leverage you are employing in the business relative to some other important metrics.8.28: The debt service coverage ratio looks at your operating income, but it looks like your total debt service, not just the interest but also the principal payments.11.45: Accounts receivable turnover measures how effective you are at collecting your receivables. The bigger the credit sales number and the smaller the average means that you have a very effective means of collecting money as fast as possible.15.00: The EBT margin tells us how much our profit margins were before taxation, which is the metric for how your business will deal.15.48: The net income divided by shareholder's equity is the return on equity ratio. It is valuable because this tells you what your actual ROI is on the investment made in the business and not given.17.46: The book value per share ratio takes the shareholder's equity minus preferred equity. This may not apply to private businesses, but in public, it does.19.24: The earnings per share ratio is truly a metric of how much of the business's profitability belongs to each shareholder. You take the net earnings or net income and divide that by total shares.3 Key Points:Instead of looking at current liabilities from the lens of your current assets, the operating cash flow ratio looks at operations. It takes your operating cash flow and the cash generated from operations. The interest coverage ratio measures your interest obligations on all your debt, like your operating income divided by your interest expenses. The interest coverage ratio is an important one in the short run.The gross margin is your gross profit divided by your net sales. Gross profit margin is looking at the direct cost of unit sale like the cost of goods sold, cost of services rendered, whatever that related specifically to that sale.Tweetable Quotes:“The current ratio looks at current assets and divides them by current liabilities. It tells you that you have enough cash and convertible assets in cash.” - Jason“The debt-equity ratio is taken from your total liabilities and divided by your shareholder's equity. This is a metric of how you finance your business essentially.” - Jason“In many cases, businesses can rely upon lines of credit that do not require anything much more than interest payments at least every month.” - JasonResources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedIn See acast.com/privacy for privacy and opt-out information.

Today is the second part of the continuation of a series that Jason is doing on understanding financial statements and some of the data. Today, Jason will move on to a couple of other less common reports and is going to look for the cash flow statement; this is not required for tax purposes, but every accounting software should be able to produce one of these. Episode Highlights:01:25 A cash flow statement gives you an understanding of what happened to your company's cash and how you got from the starting position at the beginning of the year to the end position at the end of the year.01:39 There are three different categories or changes within the business that will impact your cash. 02:28 The first area that the cash flow statement looks at is operating cash flow. It is simply a change in your income statement and balance sheet that came from operations. 03:43 If your accounts payable went down, it means you have converted more of your accounts payable to cash. Therefore, you increase your cash and vice versa.04:04 Jason: Any expenses that count payable are positive to your net cash and any reduction is negative, leading to the change in current liability.07:11 If you issue any new debt, that new debt increases the cash on hand that you pay off in long-term debt and the reduction results in a lower amount of cash.09:31 Cash is important because it is the lifeblood of a business. You can be totally profitable with cash being the lifeblood, but you can have negative cash flow. 15:01 You have to be careful with your inventory because if you carry too much, it's just money waiting to be converted that could be in your pocket, and if you carry too little, you could lose it on sales.16.49 The current liability, like loan payments, you don't have much control over things. But, again, this is not an area that you are going to be able to reduce because if you have a loan, and you typically have scheduled payments.18:28 COVID has taught us that you need to access the cash when everything goes wrong, but there's a difference between having cash in the bank and accessing the capital.19.06 If you don't maintain enough working capital when you sell the business, it will impact your valuation. Working capital is an asset of the business. Too much of it, you can clear that out. Too little of it, you need to invest.3 Key Points:Cash flow from investing activities reflects any investments you made in your business, specifically your business's fixed asset component or balance sheet. Investment in general matters because that investment can either be used for working capital or other business needs, or personal consumption of the business owners.If you could increase the duration of your pay and turn your short-term liabilities into long-term liabilities, you would reduce the need for working capital.Tweetable Quotes:“When you total up all aspects of cash flow, the difference should equal the change in value in your cash balance over the year.” – Jason“Having a healthy amount of working capital is vital because you need to keep your business afloat, and there are ways you can optimize around this.” - Jason“If we can reduce your pay, current assets, and inventory, you can reduce the need for working capital.” – Jason Resources Mentioned:Facebook – Jason Pereira's FacebookLinkedIn – Jason Pereira's LinkedInTranscript See acast.com/privacy for privacy and opt-out information.