Alberta versus BC

Many clients tell us they plan to move BC because of the warmer weather but there are some things that they should keep in mind. Although Alberta and BC have equal small business corporate tax rates of 12%,  Alberta is still the rational choice for your headquarters.

Alberta’s differences over BC:

  1. Higher GDP with an economy size comparable to Finland vs. BC’s economy which is comparable to Romania. In 2017 Alberta grew at twice the rate of BC
  2. More than twice the exports as BC
  3. Alberta is less dependant on oil (a real resource) than BC is dependent on real estate (over-valued)
  4. Higher incomes
  5. No provincial sales tax, no provincial health-care premiums (BC’s monthly premium rate), least expensive motor vehicle licenses and permits, which all mean that in addition to higher incomes and lower cost of living, Albertans have more disposable income to spend on your business.
  6. Personal tax advantages to earning non-eligible dividends at $60,000 in a family.
  7. Alberta has no probate fee. However, in BC, where the gross value of all your real and personal property in BC subject to probate doesn’t exceed $25,000, there is no probate fee and where the gross value DOES exceed $25,000, the probate fees are:

    0.6% of the portion of gross value over $25,000 up to $50,000 and 1.4% for the portion of gross value over $50,000 (Example: $8,900 total probate fees if your gross value is $650,000)

  8. There is a property transfer tax (PTT) in BC. You are charged this transfer tax when you make changes to a property’s title. This tax is based on the fair market value of the land and improvements the tax is: 1% on the first $200,000, 2% from $200,000 up to $2,000,000 and 3% on the value greater than $2,000,000.  (Example: Fair market value of $650,000 property = $11,000 PTT payable)

Edmonton’s advantages over Calgary

  1. While there is money to made from the bigger population of BC, it isn’t worth the headache compared to dealing with a demographic with higher disposable incomes.
  2. Edmonton has a well-balanced economy: Petrochemical industries (reserves second only to Saudi Arabia), technology sectors -AI, nanotech, financial centre (Canadian Western Bank, ATB, Servus, TD, Manulife), retail: The Brick, Katz Group, AutoCanada, Boston Pizza, Pizza 73, Liquor Stores GP, Shaw Communications, Booster Juice, Earl’s, Fountain Tire
  3. Edmonton’s University of Alberta tops the schools in Calgary, so this will always help Edmonton’s real estate.


The Most Efficient Way to Run a Business


Our new office hours are Monday to Friday 8am to 1pm. If it is inconvenient for you to drop by during our office hours you can also arrange a time for someone to pick-up your documents after 1pm. (Edmonton area only)

Background and Framework for Efficiency

  1. Focused 5 hour work day: We had the focused 5 hour work day from 2010-2013 and started it again with one employee in March 2017. We have seen first hand that our focused 5 hour work day reduces absences, stress and increases efficiency. Shifts under 5 hours, employees are not entitled to any breaks.  Lunch and breaks during the typical workday are not used to re-energize or restore attention.  In our office’s case, they are spent eating lunch late at our desks in front of the computer, while other workplaces time is lost strolling in late after getting caught in line at Tim Hortons. Back in 2010-2013, as owners, we worked 10+ hour days and we were much more efficient running two employees on separate 5-hour shifts (8am-1pm and the second person from 1pm-5pm).
  2. Unless you are financially independent, you should be working rather than hiring out the work. No one will ever do a better job than you, and no one will ever care about your big picture as well as you. Only farm out things that can be completed more efficiently through unique skills and economies of scale (Accounting, bookkeeping vs. doing it yourself). Due to minimum efficient scale, the cost/technology would not make sense for an individual to specialize in something that is not directly related to their ability to generate revenue.
  3. The most sustainable payroll solution is that if you pay someone $20 per hour, the employee should also “pay you” at least $40 per hour (giving you $20/hour as their contribution to overhead). You have to account for the payouts you are responsible when you have staff: statutory holidays, 4% vacation and eventually termination pay.  Profit per employee is an important metric that our 3rd iteration of SwissBooks will measure and report to you.
  4. Consider converting any full-time staff you have to focused 5-hour shifts. If you are open longer you could consider running back-to-back 5-hour shifts as we did 2010-2013.
  5. Bring efficiency and focus into your life is efficiently articulated in this appropriately titled book: Efficiency: Get Rich Without Giving Up Your Life.  It will also tell you how to start an online business or make money with affiliate marketing.

Dear valued SwissBooks clients,

We would like to inform you of a billing change effective September 1st, 2017.

Since launching THUT Accounting in 2006, our constant improvements equip you with the most innovative accounting solution, which is why this billing change will also support the ongoing development of new value for your business.

The all-inclusive flat fees including GST are as follows:

$8,800    Industry: Annual expenses over $1 million
$7,100    Enterprise: Annual expenses between $450k and $1m
$5,600    Venture: Annual expenses between $200k and $450k
$4,700    Boutique: Annual expenses between $100k and $200k
$3,900    Micro: Annual expenses less than $100k
$3,200    Startup: No payroll & revenue below $380k

Save 1 free month of bookkeeping for every new client you refer to us.  Your referral will also get 1 free month of bookkeeping and you’ll receive a thank-you for introducing them to a service that at a cost of 1% or less, legitimately reduces costs by 3-30%. 

If you do not report at least $90,000 of annual net income and have at least 20% pre-tax margins, then SwissBooks is not helpful and it is not fair to recommend a product that is not going to be tailored to your needs. It may be in your best interests to dissolve your corporation and save yourself unnecessary accounting fees by filing as a proprietor.  Alternatively, the easiest ways to turn it around are either through focusing on either recurring revenue or big ticket item sales. 

We want to thank you for your continued business and we are committed to working with you to help save you money, and help you net $20,000+ a month after-tax in your business.

Christian Thut
Präsident, THUT of Switzerland


Kính gửi khách hàng SwissBooks,

Chúng tôi muốn thông báo cho bạn về thay đổi thanh toán có hiệu lực từ ngày 1 tháng 9 năm 2017.

Kể từ khi mở công ty THUT vào năm 2006, những cải tiến liên tục của chúng tôi mang lại cho bạn giải pháp kế toán sáng tạo nhất, đó là lý do tại sao thay đổi thanh toán này cũng sẽ hỗ trợ sự phát triển liên tục của value mới cho doanh nghiệp của bạn.

Các khoản phí cố định bao gồm GST:

$ 8,800 Industry-Thu nhập lên đến 6 triệu đồng dollar
$ 7,100  Enterprise -Thu nhập lên đến 6 triệu đồng dollar
$ 5,600 Venture -Thu nhập lên đến 1.5 triệu đồng dollar
$ 4,700  Boutique -Thu nhập lên đến $ 880 nghìn
$ 3,900 Micro -Thu nhập lên đến   $ 380 nghìn
$3,200  Startup: No payroll & revenue below $380k

Free 1 tháng lệ phí kế toán cho mỗi khách hàng mới mà bạn giới thiệu cho chúng tôi. Người giới thiệu của bạn cũng sẽ nhận được free 1 tháng lệ phí kế toán và bạn sẽ nhận được lời cảm ơn vì đã giới thiệu họ với dịch vụ với chi phí 1% hoặc ít hơn, mà giảm chi phí hợp lý xuống 3-30%.

Nếu bạn không báo cáo ít nhất 190.000 đô la doanh thu hàng năm và có ít nhất 20% lợi nhuận trước thuế, vậy thì SwissBooks không hữu ích và không công bằng khi đề nghị một dịch vụ
không được phù hợp với nhu cầu của bạn. Có thể là vì lợi ích tốt nhất của bạn để giải thể công ty của bạn và tiết kiệm cho bạn các khoản phí kế toán không cần thiết bằng cách nộp đơn proprietor. Ngoài ra, cách đơn giản nhất để xoay quanh nó là thông qua tập trung vào doanh thu định kỳ hoặc doanh thu bán hàng lớn.

Chúng tôi muốn cảm ơn bạn về công việc kinh doanh tiếp theo của bạn và chúng tôi cam kết làm việc với bạn để giúp bạn tiết kiệm tiền và giúp bạn 20.000+ đô la một tháng sau khi đóng thuế trong doanh nghiệp của bạn.

Trân trọng,
Christian Thut
Präsident, THUT of Switzerland

How Other Accountants Decrease Your Taxes

Willkommen to the second article on our series on terrible accountants and what you need to watch out for before they waste your money and time.
The aim is not to harm this Chartered Professional Accountant, this post is only there to give some background information on why clients make the upgrade to SwissBooks and wonder why they have to pay corporate income taxes for the FIRST time after more than 5 years in business. This should also save some unsuspecting business owners the same grief.

 Each time we discuss these details with the clients, they have no idea where his numbers come from.
1. A successful Edmonton Tint Shop The accountant wrote off more than $115, 000 of vehicle expenses in the year the client purchased a brand new Mercedes Benz ML63 for over $100,000. (If you have assets of a business (buildings, equipment, vehicles, etc.), you can ONLY claim a yearly deduction on the depreciation on the cost of these assets, also known as Capital Cost Allowance (CCA).  – As this is a vehicle, the rate is 30% and the first year rule applies = $100, 000 / 2 = $50,000 x 30% = $15,000 versus the $100,000+ that the accountant claimed)
2. A successful Edmonton Nail Salon – 
  • Strangely in the preceding year, the accountant reported sales which are $100,000 less than the debit/credit card terminal payments deposited in the bank.
  • There was also an unexplained $12,437 of vehicle expenses vs. our itemized $1,412 of vehicle expenses 
3. A corporation running 2 Award Winning Restaurants – 
  • Strangely there is nearly $50,000 of unexplained interest expense in the first preceding year, as well as abnormally high and unexplainable amounts in the second and third preceding tax years.
  • Same story with the repairs & maintenance account: we have nearly $11,000 of itemized entries mostly paid by the client credit card. In the 3 preceding years, the other accountant claimed there was more than $36,000, $38,000 and nearly $50,000 of repairs and maintenance.  
  • For EACH of the years in question, nearly $18,000 + $12,000 +$9,000 were claimed as professional fees when the ACTUAL amount paid for the 3 years is less than the accountant’s claim in 1 year
  • The accountant claimed GST on ALL of the food purchases for the restaurant when most foods do not have GST
  • This client pays for his restaurant’s expenses with his Mastercard but the accountant double claimed expenses by recording the expense off of receipts AND THEN also recorded the expense again by claiming the payment to the Mastercard as food purchases.

We have documented every time we tried to get working papers or the accounting ledger.  We look forward to the day he corrects his ways and takes his profession more seriously otherwise we will work with his professional accounting board to make sure he is punished.  (We have already successfully worked with CGA to score a fine against a different Edmonton CGA who was taking client’s cheques written to CRA and making them out to herself)

Make no mistake, these people are cowards and unsophisticated criminals, cheating their customers and the federal and provincial governments. Their designation means nothing when the client signs all this paperwork that they take whole responsibility of the reported numbers.

This is what we call inflating expenses to “minimize” your taxes: fake accomplishment will bite you in the end. Putting your customers at risk by reporting bogus numbers should put you in prison.

We feel sorry for this CPA (and his victims) but need to leave his name here to save time (so we do not have to explain the taxes his former clients need to pay and for his current and potential victims). It is truly a meaningless life when you charge material amounts of money and give nothing to the client in return other than a fake accomplishment, stealing from the government and eventually hurting the client when this catches up to them.  We fired one unsuccessful client who wanted us to help her cheat, only to get a professional courtesy letter from this same CPA, birds of the same feather flock together.

Welcome to SwissBooks
  1. 1. A full ledger is provided that reconciles to your bank and credit card statements showing each accounting entry in a clean layout.
  2. THUT is committed to further extending its market position.  The basis for this is an outstanding reputation.  Clear virtues and principles determine our daily thoughts and actions.
  3. High performance is the value that represents THUT.
  4. Striving for the highest quality, uncompromising customer service, and continuous further development create the common foundation on which we act when working together.

  5. Our credibility is based on the code.  It sustainably shapes our good name with the public, and therefore also our financial success.

  6. Our promise unequivocally says what we stand for and what we deliver.  We put ourselves in our customer’ shoes.
  7. The THUT tradition of commitment – as strong today as through the 19 generations of our state documented history – continue to place the interest of whom we serve before all other considerations.  Niklaus Thut, a Habsburg overlord and now a revered Swiss hero died defending his home.  Before he was killed, he ate the flag to prevent it falling into enemy hands. We will never dishonor our family reputation which stood for over 630 years for any ill-gotten short-term gains.  We will work with you to minimize your tax obligation, preserve and protect assets for future generations.  Accounting is beautiful a series of debits and credits that must balance.  There is no such thing as bad accounting- only bad accountants.

Like all people with no value, bad CPAs should be avoided at all costs.  Join my personal vendetta against all the bad CPAs in Canada that hide behind their designations or hide behind their high fees. Their customers automatically associate authority based on the high fees they charge. Bad CPAs: please start behaving or I will continue throwing punches as usual.

Upcoming topics for bad accountants:
  1. “Investing” under $500,000 in individual stocks: inefficient waste of time. If you could beat my index fund your time is worth more working on Wall-Street.
  2. Franchises: not worth pursuing unless you are the franchisor.

We can’t be responsible for other accountants irresponsibility.  Our responsibility comes from 10 years of delivery quality, completing files on time, servicing memorably and saving our customers’ far more money in taxes than any small price difference.

Share with someone that could use some advice in this post or save some taxes
For every person, you refer we’ll give you a free month or a gift card equal to 1 month of service of your referral – whatever is bigger! Up to $600!
Anyone you refer gets a free month of bookkeeping!
THUT data capture technology extracts data from bank, credit card, and online statements and allows for automatic bank reconciliation – this renders the CPA obsolete.
THUT uses artificial intelligence to locate and extract line item and tax summary data from receipts and exports it into a CSV file.
Cleansing algorithms allow it to extracts transactional data that is 100% accurate.
Send us your prior financials and we will prove to you how our value is unrivaled in Canada.

Actionable Self-Improvement Books

  1. Efficiency: Get Rich Without Giving Up Your Life

  2. Antifragile: Things that Gain from Disorder – by Nassim Nicholas Taleb

  3. A Guide to Good Life: The Ancient Art of Stoic Joy – by William B Irvine

  4. A Guide To Rational Living

Books for Parenting

  1. How an Economy Grows and Crashes – by Peter D. Schiff

  2. Your Competent Child: Toward a New Paradigm in Parenting and Education – by Jesper Juul

  3. Way of the Warrior Kid: From Wimpy to Warrior the Navy SEAL Way
  4. The Little Prince – by Antoine De Saint-Exupery

  5. The Whole-Brain Child: 12 Revolutionary Strategies to Nurture Your Child’s Developing Mind
  6. The Conscious Parent: Transforming Ourselves, Empowering our Children– by Shefali Tsabary

  7. Out of Control: Why disciplining your child doesn’t work and what will – by Shefali Tsabary

  8. How to Talk so Kids will Listen & Listen so Kids will Talk – by Adele Faber & Elaine Mazlish


(Disclosure: Links to products are affiliate links. If you make a purchase after clicking a link, we may receive a commission. This commission comes at no charge to you. Thanks for supporting SwissBooks & Anja’s Plate to get some good information out to people like you!)