How to Set Up Your Nonprofit’s Access to the CRA Through Represent A Client

Having access to your online CRA My Business Account is useful at all times, not just during the current health crisis — but, in order to receive your organization’s government benefits quickly and securely during COVID-19, you need a Canada Revenue Agency (CRA) My Business Account and you must be signed up for direct deposit. 

It’s time to move your CRA relationship to the cloud.

This tipsheet is written with the nonprofit and charitable sector in mind. We will help you navigate CRA’s requirements for setting up access for your representatives (staff, board, accountant, bookkeeper, etc.) through Represent a Client.

Need help? Contact us at info@youngassociates.ca. 

For those who’d rather DIY, here’s how. 

What is a CRA My Business Account?

My Business Account is the CRA’s secure online portal for organizations. Like a bank account, your CRA My Business Account already exists online, but you need a login to access it. 

My Business Account gives you online access to all of your tax accounts (payroll, HST, charities and more). The CRA has made a lengthy list of services available online, including filing returns, retrieving account history, making certain types of payments, and setting up direct deposit.

CRA offers a parallel account for individuals, called My Account. It provides online access to personal income tax and individual benefits. 

You’ll find complete details on My Business Account here, with a special page for registered charities here.  

What’s special for charities and nonprofits?

It’s straightforward for a commercial business to sign up for CRA online access, because the owner de facto is authorized to act on the business’ behalf with CRA.

Charities and nonprofits are not owned by anyone. Rather, they are governed by a volunteer board of directors. Thus, individuals need to be granted authorization to the organization’s account — either by the law (in the case of directors) or by the board of directors (in the case of staff, external bookkeepers and accountants).

Personnel change over time, meaning that CRA access must be updated when individuals or board members leave the organization, or new people join. Organizations often realize that their CRA representatives are out of date at critical moments — such as waiting for COVID-19 benefits!

What is Represent A Client?

Represent a Client is a service that provides representatives with secure and controlled online access to CRA account information on behalf of individuals and organizations. 

Individuals need to prove their identity with CRA by setting up their My Account access. With their credentials established, individuals can then be attached to an organization's account.

(Note that the same process is used for tax preparers, accountants, etc., who act as agents for individuals and businesses.)

Representatives can be assigned to one of the following three levels of account access:

• Level 1: View information only

• Level 2: Update and view information 

• Level 3: Delegate authority, update, and view information

Members of the boards of directors of nonprofits and charities automatically have Level 3 access. 

The ability to delegate authority means the power to give others access to a CRA account. Boards of directors may decide that they want their Executive Director to hold Level 3 access as a matter of operational convenience: the ED can then create access for (say) the auditor and the bookkeeper. 

Please note that Level 3 access is required to set up direct deposit, as outlined in this tipsheet. 

The significance of your board list

Because your board members automatically have Level 3 access, it is very important to make sure CRA has a current list. 

You can update your board list through My Business Account by following the instructions here. Put a note in your calendar to do this after every Annual General Meeting. 

Setting up services with CRA

This handy page contains links to explanations on how to access all CRA services.

Step one: set up My Account access

First step: your representatives — board members, staff, third-party bookkeepers and accountants — must all set up their own My Account with CRA. Instructions can be found here. 

You need to be aware of one thing: you need a security code from CRA to complete the process. During My Account setup, CRA will send you your security code via either mail or email. You must enter this code to confirm your identity. 

Therefore, the process may take some time. The email option is the fastest way to make this happen.

Step two: register with Represent A Client account

Visit the Rep A Client page here. Using your My Account login, generate a RepID (representative’s identification number). This is your unique identifier with CRA as an individual who’s authorized to to access an organization’s CRA account.

The RepID is personal to you. Bookkeepers and accountants use their RepID for all their clients.

Step three: associate your Rep ID with the organizations you need to access

There are multiple ways to make this happen. You’ll find all of the options here. 

Let’s assume that the organization hasn’t set up My Business Account, and that no one can log in with Level 3 access. (Remember, even though members of your board of directors legally have Level 3 access, they still need to establish it online in order to access your account.)

With no access to My Business Account and no Level 3 access, your first steps to gaining access are setting up My Account and getting your RepID.

Then, using Represent a Client, you must submit a business authorization request by navigating to “Authorization Request” in the sidebar menu. Complete the authorization request form. Once the correct information is entered:

• A board member must sign the certification page.

• You must submit the signed certification page using "Submit documents" in Represent a Client.

• The CRA will review, validate, and process the electronic authorization request and certification page, within five business days.

This method will add you to your organization’s account, but it involves some paperwork — and some time. Note the five-day turnaround. 

Demands on the CRA are extremely high during the pandemic: reasonably, you may expect to wait longer than this.

Here’s the fastest route, for reference. Assuming that a board member or the ED already has Level 3 access to My Business Account, they can login to My Business Account, input your RepID, immediately authorize you and give you instant access to the organization’s CRA account. 

How Young Associates can assist

A consultation with us may make all the difference to your comfort level and confidence that your accounting system is up to the challenge of the pandemic. 

We can help you find the correct information to set up your CRA cloud access and walk you through the process to minimize frustration and ensure that your account and direct deposit arrangements are properly completed.

We’d also be happy to give you a quote for full-service bookkeeping. 

We work on the basis of fixed price agreements, so you’ll know going in how much our work will cost — and we always offer a money-back guarantee: if you’re not completely delighted with our service, we will, at your option, either refund the price, or accept a portion of said price that reflects your level of satisfaction. 

Contact us: info@youngassociates.ca

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This tip sheet was created by the Young Associates team based on the best information available to us as of the date of posting.

Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet. 

Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.

Setting up Direct Deposit with the CRA

Using direct deposit is the fastest and most secure way to receive funds from the Canada Revenue Agency (CRA). Use it to conveniently and easily get any CRA refund — and to receive your COVID-19 federal support. The CRA provides an FAQ here addressing common questions about security, and how the system works.

Note that some COVID-19 benefit programs require that you have direct deposit. This tipsheet will help you receive your money! We will orient you to CRA online accounts and help you move your CRA relationship to the cloud. 

Individuals, businesses, nonprofits and charities will find step by step instructions below.

Need help? Contact us at info@youngassociates.ca. 

For those who’d rather DIY, here’s how. 

CRA accounts for individuals and organizations

It’s helpful to understand how CRA has organized access to its various tax programs.

If you’re an individual, it’s to your advantage to set up My Account. This gives you access to your personal income tax account and individual benefit programs such as the GST/HST Credit. COVID-19 benefits such as the Canadian Emergency Response Benefit can be direct-deposited to individuals through My Account. Individuals have the choice of setting up the benefit by phone and receiving a cheque in the mail.

Organizations need My Business Account. It provides access to payroll accounts, HST, T3010s, corporation income tax, and other CRA programs related to businesses, nonprofits and charities. COVID-19 benefits such as the Canadian Emergency Wage Subsidy will be direct-deposited to your bank using the information provided to the CRA through My Business Account.

Setting up direct deposit on your CRA accounts

You can gain access to the accounts that you own. Just like setting up online banking, accessing your CRA account involves security procedures to keep your data and your money safe.

Individuals can set up access for their CRA My Account. Individuals may appoint a tax preparer or accountant to act on their behalf — but only the individual who owns the account can set up direct deposit.

Business owners can set up access for their CRA My Business Account. Businesses may appoint a bookkeeper, accountant or auditor to act on their behalf — but only the business owner can set up direct deposit.

Nonprofits and charities are a special case, because there are no owners. Rather, these organizations are governed by boards of directors. Therefore, individuals who have authority to deal with the account need to set up access to the organization’s My Business Account through Represent A Client. Only individuals with top-level access (Level 3) can set up direct deposit. 

We explain the process of accessing a nonprofit’s or charity’s CRA account, step by step, in plain language, here. 

For information about how to set up all of these account types, please see this page on the Government of Canada website.

What you’ll need before enrolling for direct deposit

Individuals will need:

• A bank account with a Canadian financial institution

• A void cheque that indicates:

  • the name of your financial institution

  • your bank account number

  • the branch number (also called the "transit number" — 5 digits) 

  • the institution number of your financial institution (3 digits)

Nonprofits, charities and businesses will require all of the above items, as well as:

• Your 9-digit CRA business number

• The proper authority to modify the account: usually an owner, partner, director or an individual with Level 3 access

What if I don’t have a cheque?

If you do not have access to a void cheque, you can find your account information through your online banking account. If neither of those is accessible to you, please call your bank directly. 

How to Complete your Direct Deposit Setup:

Individuals can phone the CRA to arrange for direct deposit, or log into My Account. In the “related services” section, navigate to “Arrange my direct deposit” and follow the instructions.

Business owners cannot set up direct deposit by phone. The only way is to log into My Business Account. In the “related services” section, navigate to “Arrange my direct deposit” and follow the instructions.

Charities and nonprofits need an individual with Level 3 access to complete the process online through their CRA Rep A Client account. To do so:

• Log into CRA Rep A Client

• Enter the Business Number (BN) of the account you’d like to access

  • If you get an error message, make sure you are set up as a representative for your organization using these step by step instructions.

• Find the organization’s “Business Profile” link and click to view and edit information

• Under the direct deposit section, edit and follow the steps to set up direct deposit using your bank account information

How Young Associates can assist

A consultation with us may make all the difference to your comfort level and confidence that your accounting system is up to the challenge of the pandemic. 

We can help you find the correct information to set up your CRA cloud access and walk you through the process to minimize frustration and ensure that your account and direct deposit arrangements are properly completed.

We’d also be happy to give you a quote for full-service bookkeeping. 

We work on the basis of fixed price agreements, so you’ll know going in how much our work will cost — and we always offer a money-back guarantee: if you’re not completely delighted with our service, we will, at your option, either refund the price or accept a portion of said price that reflects your level of satisfaction. 

Contact us: info@youngassociates.ca.

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This tip sheet was created by the Young Associates team based on the best information available to us as of the date of posting.

Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet. 

Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.

How to Apply for the Canada Emergency Response Benefit

UPDATE - April 16: Effective immediately, you will now qualify for the CERB if you expect to receive $1,000 or less (before taxes) from employment and self-employment income for the 4-week qualifying period for which you're applying. The qualifying period dates are outlined in the chart below.

You may also want to repay or return the CERB if you’ve received the Benefit but realize you're no longer eligible for that period. For example, you might be returning to work earlier than expected or receive the money and later realize you did not qualify. The CERB repayment instructions are outlined here.  

4-week period cycle	Period dates
1	March 15, 2020 to April 11, 2020
2	April 12, 2020 to May 9, 2020
3	May 10, 2020 to June 6, 2020
4	June 7, 2020 to July 4, 2020
5	July 5, 2020 to August 1, 2020
6	August 2, 2020 to August 29, 2020
7	August 30, 2020 to September 26, 2020

On March 24, the Canadian government passed Bill C-13 to enact the Canada Emergency Response Benefit (CERB) to help individuals who are no longer earning income due to COVID-19. The program actually started receiving applicants on April 6, but questions remain to be answered.

Please find below information Young Associates has validated from government sources. We also discuss some of the questions we are receiving, for which we don’t believe clear, categorical answers yet exist. We hope to be able to update this tipsheet with additional information as it becomes available.

As always — independent research should be done if you are looking into applying for this benefit yourself.

This benefit is geared to individuals. We are directing this tipsheet to employers, too, who are receiving questions from laid-off staff members and from freelancers who have lost their gigs.

What is the CERB?

The Canada Emergency Response Benefit (“CERB”) is an income support payment payable to eligible workers for up to four (4) months within the period falling between March 15, 2020 and October 3, 2020 for workers who have ceased work and are not receiving income as a result of COVID-19. It will be paid out to qualifying individuals monthly at $2000/month for a maximum of 16 weeks. Individuals will be required to apply to the program each month to affirm their lack of income. 

The CERB pays slightly less than the maximum EI amount, giving out $500 per week ($2,000 per month).

If you’re eligible for EI (which has different qualifying requirements from CERB), you have to apply for EI first. Note that EI pays out 55% of your earnings. If that works out to more than $500 per week, EI is your best bet.

Otherwise, the CERB is best for you.

Eligibility

You are eligible for the CERB if you meet the following requirements:

• Resident of Canada with a valid Social Insurance Number

• Are at least 15 years old

• Who have stopped working for any of the following reasons:

  • You have been let go from your job or your hours have been reduced to zero

  • You are in quarantine or sick due to COVID-19

  • You are taking care of others because they are in quarantine or sick due to COVID-19

  • You are away from work to take care of children or other dependents whose care facility is closed due to COVID-19

  • You cannot quit your job voluntarily

• Earned at least $5,000 in 2019 or in the 12 months prior to the date of your application by any of the following means:

  • Employment; self-employment; maternity and parental benefits under the Employment Insurance program, and/or similar benefits paid in Quebec under the Quebec Parental Insurance Plan

• You are or expect to be without employment or self-employment income for at least 14 consecutive days in the initial four-week period (March 15 - April 11). For subsequent benefit periods, you expect to have no employment income.

  • NOTE: it is unclear right now how the government intends earnings to be reported. There are two options. You might count earnings based on when you receive the money. That’s the normal basis for income tax reporting for individuals. Or, you might count earnings based on when you did the work (i.e. typically before you receive the money.) That’s the normal basis for business accounting.

How to Apply

There are two ways to apply:

• Online using CRA’s My Account

• By phone using an automated toll-free line at 1-800-959-2019.  Phone applicants will need to provide their social insurance number and postal code for security purposes.

Both services are available 21 hours/day, 7 days/week from 6AM to 3AM.

There is one application portal for both EI and CERB. You will be asked to answer a number of questions that direct you to one benefit or the other.

When applying, you will need to provide your personal contact information and Social Insurance Number, and confirm that you meet the eligibility requirements outlined above. The government’s current priority is to get this money to the people who need it, but they will be verifying eligibility at a future date when you may be asked to provide additional documentation.

In order to not overwhelm the system, please obey the following chart to determine when to apply. This schedule will not affect the payment schedule.

If you were born in the month of:	Apply for CERB on	Your best days to apply
January, February or March	Mondays	April 6, 13
April, May, or June	Tuesdays	April 7, 14
July, August, or September	Wednesdays	April 8, 15
October, November, or December	Thursdays	April 9, 16
Any month	Fridays, Saturdays and Sundays

How it will be paid out

The Benefit, in the amount of $2,000, will be paid in blocks of four weeks. This is equivalent to $500 per week. A maximum of 16 weeks of benefits can be paid.

The Benefit is taxable although tax will not be deducted at source. You will be expected to report the Benefit as income when you file your income tax for the 2020 tax year.

Benefits will start within 10 days of you submitting an application. There is no waiting period.

Payments will be made through direct deposit or by cheque. You will be paid more quickly if you choose direct deposit through your CRA My Account. Your payments will be retroactive to your eligibility date.

Open questions

Because this is a new program, and because it has been rolled out rapidly, we are aware of unresolved questions. Be careful of what you hear, even from CRA’s phone services! You can trust info that the government has put in writing.

Does the government want us to report earnings based on when we did the work or when we got the money?

Will the 14 day period of no income be calculated based on the date when you receive your pay, or the date when the work was completed? We have seen posts from individuals who appear to have received conflicting advice from CRA.

Will there be any consideration for workers who are still working, but on a much-reduced schedule? We have heard discussion of support for individuals working fewer than a certain number of hours per week.

Will there be any consideration for categories of workers who may not meet the CERB eligibility criteria, but who still need assistance?

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This tip sheet was created by Heather Young CPB and the Young Associates team based on the best information available to us as of the date of posting.

Young Associates works for nonprofit organizations. We do not do personal income tax.

Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet. 

Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.

Sources: 

https://www.canada.ca/en/services/benefits/ei/cerb-application.html

https://mathewsdinsdale.com/federal-government-provides-new-details-related-to-75-wage-subsidy-and-canada-emergency-response-benefit-cerb-in-response-to-covid19/

https://www.canada.ca/en/revenue-agency/services/benefits/apply-for-cerb-with-cra.html

https://payroll.ca/Late-Breaking-Payroll-News

https://www.canada.ca/en/services/benefits/ei/cerb-application/questions.html

Payroll Tips on Accessing the 10% Temporary Wage Subsidy for Employers

UPDATE: As of April 8, you can find information about the 10% wage subsidy on this Government of Canada webpage.

On March 18, the federal government announced a wage subsidy. The details of that program are now much clearer. This tip sheet will help you claim the amount to which your organization is entitled.

Need help? Contact us at payroll@youngassociates.ca. 

For those who’d rather DIY, here’s how. 

Who qualifies?

Charities, nonprofits and small businesses. If you are a small business owner, you will find the eligibility details here. 

You must have a payroll account (as of March 18), and you must be paying employees.

How much can I get?

Here’s the government’s language:

“The subsidy is equal to 10% of the remuneration you pay between March 18, 2020, and June 20, 2020, up to $1,375 per employee and to a maximum of $25,000 total per employer.”

Many small organizations will not reach this maximum.

How do I calculate this?

1. Make a list of your employees, and their gross pay for this pay period. 

2. Total the gross pay. 

3. Calculate 10% of this amount.

Say your organization employs the following three people, and they’re paid bi-weekly. The subsidy for one pay period would be calculated as follows:

Employee	Annual Gross Salary	Gross Salary This Pay Period
Sarah	65,000	2,500.00
Raj	48,500	1,865.38
Alice	42,500	1,634.62
Total Gross Pay		6,000.00
10% Federal Wage Subsidy		600.00

To calculate your subsidy for the three months of the program, make a list of paydays that fall between March 18 and June 20. Multiply the per-pay-period amount by the number of pay cycles.

This organization would claim a subsidy for the following pay periods:

Mar 20, Apr 3, Apr 17, May 1, May 15, May 29 and June 12

Read on - there’s a risk of over-calculation! We will cover that below.

How do I claim it?

Reduce your source deductions remittance by the amount of the subsidy.

If you make your remittance on the 15th of the following month, you will accrue the month’s payroll liabilities exactly as you normally would. When you make your remittance, you will reduce it by the amount of the subsidy.

If you use a payroll service, likely your remittance amount is withdrawn with each pay cycle. Your payroll service provider will manage the subsidy for you. They should be able to confirm how this will work for your organization.

Be careful - there’s a risk of over-deducting! We will cover that below.

How are my employees affected by this?

They aren’t. The subsidy goes to the employer. The intent is to give employers more resources in the hopes that this will stabilize organizations and their ability to retain staff during this crisis.

You will calculate your employees’ net pay exactly as you usually do. Their remuneration does not change, and their net pay does not change.

What if I haven’t started to claim it yet?

Don’t panic! You have until the end of 2020 to claim the subsidy.  In fact, you can claim it as part of your 2020 filing and have the credit transferred to 2021.

What if my organization is currently closed?

You can only claim the subsidy for amounts people are earning now, between March 18 and June 20. You cannot claim the subsidy on what you would have been paying - just on what you actually are paying during the three months of the subsidy.

Risk of claiming too much subsidy

Let’s look more closely at the $1,375 maximum per person. Remember, that’s $1,375 of subsidy for a three-month period. That equates to someone earning an annual salary of $55,000. 

You need to monitor your claims per person.

In the example above, Sarah’s annual pay exceeds $55,000. You can only claim $1,375 for her. (If you took 10% of her gross pay for three months, you’d be claiming $1,625.)

Risk of reducing your remittance by the wrong amount

You cannot touch EI or CPP! You must remit the full amount of EI and CPP with every pay period. (That’s the employee deductions plus the matching employer contributions.)

The subsidy can only be used to reduce income tax payable. 

If your income tax remittances are lower than your subsidy, that’s ok — CRA has provided a method of handling this. You can reduce your tax payable down to zero for the three months to June 20 — and then continue to reduce future source deduction remittances until you have claimed the entire subsidy due to you.

Record Keeping

To ensure that you are meeting CRA record retention requirements please ensure that you are keeping detailed records of amounts paid, subsidy calculations and remittances.

How Young Associates can assist

If you’re finding this overwhelming, we can assist! Our expert payroll department would be happy to work with you to guarantee that you claim the full amount of your federal wage subsidy entitlement. 

We’d be happy to do a short consult to review the rules, make some calculations and get you started — or to work with you on your payroll for the next three months to ensure your remittances are accurate.

We’d also be happy to give you a quote for full-service bookkeeping. 

We work on the basis of fixed price agreements, so you’ll know going in how much our work will cost — and we always offer a money-back guarantee: if you’re not completely delighted with our service, we will, at your option, either refund the price, or accept a portion of said price that reflects your level of satisfaction. 

Contact us: payroll@youngassociates.ca

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This tip sheet was created by Alicia McGuire PCP and the Young Associates team based on the best information available to us as of the date of posting. We are happy to receive your comments at payroll@youngassociates.ca. 

Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet. 

Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.

Tips for Working Remotely: Accounting Processes & Documentation

So… you and your team are now working from home, but your filing cabinet is still at the office. That poses a challenge for sure. We can’t fix that, but we can make some practical go-forward suggestions about adapting your accounting system to the “new normal.”

Need help? Contact us at info@youngassociates.ca. 

For those who’d rather DIY, here’s how. 

Online Banking

If you haven’t yet set up online access to your bank account, don’t delay!

Through online access, depending on your bank and your authorization structure, you can view your account, initiate transactions (including online payments) and retrieve past statements. Bear in mind that appropriate authorization is still required. More on that in our tip sheet on adopting online payments.

Consider giving your bookkeeper online, view-only access so that you retain control of your banking activities, while your bookkeeper can manage your records efficiently. 

If you’re using cloud accounting, make sure you’ve got the bank feed set up. It downloads transactions directly to your cloud accounting app, expediting processing and reconciliation.

Online Accounts

The first one that springs to mind – we’re a bookkeeping firm, after all – is the Canada Revenue Agency. Now’s the time to set up My Account for your personal taxes, and My Business Account for your company (small business, nonprofit or charity).

Consider asking your bookkeeper to set up Represent A Client with CRA so that they can check your account balances, file HST and T3010s, respond to notices and receive statements.

CRA gives you handy access to all of your tax-related documentation, going back years.

Utilities, credit cards, major retailers, associations and other suppliers with whom you have an ongoing relationship may offer online access to your account, allowing you to make online payments  (being mindful of authorizations) and to retrieve invoice and statement copies.

Email

Now’s the time to sign up for emailed invoices and statements from your bank, your credit card company, “big box” suppliers (major retailers, utilities, etc.). Many of these organizations are actively encouraging customers to move to digital, and you’ll find a sign-up on their website.

Even smaller suppliers have gone digital – or are scrambling to make that happen now. 

What about you? Are you invoicing your customers, members, sponsors, registrants online?

They are having the same challenges you are, dealing with snail mail. Now’s the time to get your paperwork right to their desktop.

Any reasonably current accounting software has an email button close to the print button. Clicking it will open a dialog box that lets you send invoices and statements directly. Most apps retain email addresses, and allow you to memorize standard messages.

Snail Mail and Digitization

As of this writing, Canada Post deliveries are uninterrupted, so you will have to consider how to deal with hard-copy items that arrive at your workplace.

Now’s the time to close the filing cabinet forever, convert those hard copies to digital images, and store them online. It’s the way of the future; you won’t regret it.

No kidding: in the Young Associates office, and our tech-savvy clients’ offices, snail mail goes straight from the scanner to the shredder. 

Make sure your system is backed up! Indeed, redundant backups are essential to secure management of your documents.

Scanning

Make sure you’ve got the right tools for the job. Now’s the time to acquire an affordable scanner, or a printer with built-in scanning.

In a networked environment, you should be able to make the printer send the scanned image to the folder you identify – so you can set up your digital filing cabinet starting now.

Cloud-based Transaction Capture and Documentation

The next wave of accounting document management is AI-powered apps that read a scanned image, extract accounting details (supplier name, date, amount, HST, etc.) and seamlessly integrate to your accounting software. This doesn’t eliminate the human element: your bookkeeper still needs to review the coding before pushing the entry into your accounting software. 

Besides improving bookkeeping efficiency, these apps can act as your digital filing cabinet, sorting invoices by supplier and date, and pushing invoice images into your accounting software, so that documentation is attached to each entry.

To take advantage of these apps, you need cloud-based accounting software. Document capture front-runners include (logos are linked to company sites):

How Young Associates can assist

A consultation with us may make all the difference to your comfort level and confidence that your accounting system is up to the challenge of the pandemic. 

We can help you set up online banking and other accounts, advise on process and best practices, and advise on cloud computing and related apps.

We’d also be happy to give you a quote for full-service bookkeeping. 

We work on the basis of fixed price agreements, so you’ll know upfront how much our work will cost – and we always offer a money-back guarantee: if you’re not completely delighted with our service, we will, at your option, either refund the price, or accept a portion of said price that reflects your level of satisfaction. 

Contact us: info@youngassociates.ca 

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This tip sheet was created by Heather Young CPB and the Young Associates team based on the best information available to us as of the date of posting.

Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet. 

Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.

Tips for Working Remotely: Increase Efficiency, Adopt Digital Payments

When you and your staff and board members should be staying safe at home, the last thing you want is to be dodging germs on the streets to get cheques signed. That goes for your courier company’s staff too!

It’s time to move your payments to the cloud.

Need help? Contact us at info@youngassociates.ca

For those who’d rather DIY, here’s how. 

Authorization, control

Working remotely does not mean compromising proper accounting controls.

For small businesses, the owner may be the sole authority. Larger commercial concerns and nonprofit organizations typically require multiple authorizations on payments to control spending and ensure adherence to budgets.

You may find great comfort in those two signature lines on a cheque, and the in-person requirement for getting someone’s signature. But, that’s far from the only way to do it.

Banks and other third-party payment processors have designed protocols to support remote authorization by multiple parties, where each signer approves independently of the others. 

Organizations can implement their own internal protocols to ensure that the designated staff or board members approve payments. For instance, an invoice can be scanned and circulated by email, with the bookkeeper instructed to pay only after the appropriate people have given their okay. 

Alternately, you can investigate options for gathering digital signatures.

Getting started right away

Using options like Interac, credit card payment and supplier payment portals, you can immediately convert some of your payables stream to online payment. The table below provides some options.

Dealing with your cheques

Make sure your cheques are safe. Cheque fraud is on the rise. Blank cheques should always be kept out of sight, in a locked place. 

Do not ask signers to pre-sign cheques. This negates the value of the authorization process! If you’ve already disobeyed this important rule, you must be doubly sure that your blank cheques are secure.

Service providers

How to choose the right avenue(s) for you? This list will get you started. You may find it useful to canvass your bookkeeper, CPA, and tech-savvy colleagues to learn what they use. You may use multiple service providers, depending on your needs.

This list is not intended to be exhaustive. There are other options for you. Any of the providers below will work for small businesses, nonprofits and charities.

This is a quick overview only. All of these options offer more features than indicated in this summary. Review websites carefully for additional detail.

Provider	Cost	Accounting Integrations	Commitment / Getting Started	Notes
	Monthly fee includes transaction package; per item fee thereafter	Plugs into Quickbooks and Xero accounting software so you can transmit your payables directly to the app for payment.	You can subscribe month by month. Signing officers must complete authorization procedures.	Young Associates’ choice. Canadian owned. Sleek, intuitive user interface with online chat support. Offers authorization tiers (e.g. up to $500 1 signer only). No need to collect banking info if vendor is set up with Plooto, or vendor can accept email. Pays CRA. Does not pay many “big box” vendors (yet). International payments. Also receives payments.
	Monthly fee plus per item fee	Plugs into Adagio, Connected, Quickbooks, Sage and other accounting apps so you can transmit your payables directly to the app for payment.	Apply for a TelPay ID on their website. Signing officers must complete authorization procedures.	Canadian owned. Founded in 1985; a pioneer in payment processing. Canada’s largest biller list. For other vendors, no need to collect banking info; vendor can be notified by email. Besides supplier payments, it provides payroll direct deposit, government remittances, international payments, transfers funds. Receives payments too.
	Monthly fee for “Pro” package. 2.9% of amounts received. Per item fee.	No integration. Payments via PayPal need to be keyed into your accounting app.	Monthly commitment for “Pro” package.	PayPal’s promotion is geared mostly to receiving payments. Your vendors may already accept payment this way. You will need a method of payment (credit, debit, from your bank account, or using your PayPal balance). You may find PayPal useful for paying international artists: they can send you a PayPal invoice. Note that the recipient pays a % of the transaction.
	Per item fee	No integration. Payments via Interac need to be keyed into your accounting app.	Anyone with a Canadian bank account and an email address can send Interac e-transfers.	Interac is a Canadian interbank network. Your institution probably belongs, and right now you can probably send one-off payments to suppliers able to receive e-transfers.
Bank and credit union platforms	See your bank for details	Banks are typically cautious about linking to third party apps. Check your bank for details. Payment entries may need to be re-keyed into your accounting app.	You need to have an account. See your bank for further details on how to get started.	Features vary by institution
Credit cards	Fees vary by card. Some cards offer benefits such as travel points or cashback.	For initiating payments, no integration to your accounting software. (You may be able to set up a feed to bookkeep completed transactions.)	You need to apply for a card. The company will determine how much credit to extend.	Having a credit card expands your resources – but at a cost. Interest on unpaid balances may be high. Nonprofits and charities may find it difficult to secure a company card.
Supplier online payment portals	Most suppliers are happy to receive your payment at no charge to you.	No integration. Online payments need to be keyed into your accounting app.	Many suppliers are encouraging customers to pay online	You will need a method of payment such as a credit card, debit card, Interac or PayPal.
Supplier pre-authorized payments	Most suppliers are happy to receive your payment at no charge to you.	No integration. Payments need to be keyed into your accounting app.	You authorize the supplier to withdraw directly from your bank account. You can withdraw authorization at your discretion.	You may already be using this method. Landlords, utilities, credit card companies and other monthly billers actively seek pre-authorized payment.

How Young Associates can assist

A consultation with us may make all the difference to your comfort level and confidence that your accounting system is up to the challenge of the pandemic. 

We can respond to your concerns around security, authorization, risk management, privacy and accounting process, and help identify the best online payment options for you.

We’d also be happy to give you a quote for full-service bookkeeping. 

We work on the basis of fixed price agreements, so you’ll know upfront how much our work will cost – and we always offer a money-back guarantee: if you’re not completely delighted with our service, we will, at your option, either refund the price, or accept a portion of said price that reflects your level of satisfaction. 

Contact us: info@youngassociates.ca

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This tip sheet was created by Heather Young CPB and the Young Associates team based on the best information available to us as of the date of posting.

Although every effort has been made to provide complete and accurate information, Young Associates makes no warranties, express or implied, or representations as to the accuracy of content in this tip sheet. Young Associates assumes no liability or responsibility for any error or omissions in the information contained in the tip sheet. 

Founded in 1993, Young Associates provides bookkeeping and financial management services in the charitable sector, with a focus on arts and culture. Young Associates also provides consulting services in the areas of data management, business planning and strategic planning. Heather Young published Finance for the Arts in Canada (2005, 2020), a textbook and self-study guide on accounting and financial management for not-for-profit arts organizations.