• Drop shipping (also referred to as e-commerce) is a retail fulfillment where an enterprise does not store the goods it sells in stock. Instead, when the company sells a product they buy from a third party and that third party ships it directly to the customer. Consequently, the enterprise rarely see or handle the goods. It simply acts as an intermediary
• The largest difference between drop shipping and retail is that the drop shippers do not stock or own inventory, whereas retailers tend to store inventory. Instead, the drop shipper buys inventory as needed from a third party, most often times a wholesaler, to fulfill orders.

Benefits

• Less capital is required
  • It is possible to launch an e-commerce store without investing tens of thousands of dollars in inventory up front. In contrast, retailers often have to invest thousands of dollars to purchase and store inventory.
  • Drop-shippers do not need to buy inventory until they have already made the sale and have been paid by the customer. Without major up front investment
• Easy to get started.
  • Drop-shippers do not need to worry about:
    • Managing or paying for a warehouse
    • Packing and shipping your orders
    • Tracking inventory for accounting reasons
    • Handling returns and inbound shipments
    • Continually ordering products and managing stock level
• Low Overhead
  • Do not have to deal with purchasing inventory or buying a warehouse, thus overhead expenses are very low.
  • Many successful drop-shipping businesses are actually run from a home office with simply a laptop.
• Flexible Location
  • Drop-shipping can be run from anywhere with an internet connection. As long as you can communicate with suppliers and customers, they are going to be able to successfully manage their business.
• Wide Selection of Products
  • Because you don’t have to pre-purchase products you sell, it is possible to offer a wide selection of products to your potential customers. If suppliers stock an item, you can list it for sale on your website at no additional cost
• Easy to Scale
  • Traditional businesses usually have to do three times the amount of work to get three times the amount of business
  • For dropshipping, most of the work to process additional orders will be borne by the suppliers, allowing you to expand with fewer growing pains and ultimately less incremental work.

Disadvantages

• Low margins
  • Low margins exist as many entrepreneurs will start drop shipping and sell items at very low prices with an intent to grow revenue fast. This is because they’ve invested so little in getting the business going so they can afford to operate on very small margins.
  • Further, customers are constantly comparing prices which can lead to cutthroat competition among dropshippers with already low margins. As you can probably guess, profit margins on dropshipped products can be eliminated fairly fast.
• Inventory Issues
  • Traditional retailers can keep track of items which are in and out of stock, as they have the items in their warehouses. However, it becomes more difficult for dropshippers as they are often sourcing orders from thousands of different merchants who are also filling orders from other merchants. It is often very difficult, often impossible, for dropshippers to fully sync their inventory with their suppliers who many times are not willing to support the technology needed.
• Shipping Complexities
  • Dropshippers often work with many different suppliers therefore products listed on the website are often sourced through many different shippers. This complicate shipping costs.
  • A customer makes an order for three different items which are sourced from three different suppliers. The dropshipper will be forced to incur shipping charges for sending each item to the customer, but it’s probably not wise to pass this charge along to the customer, as they’ll think you’re grossly overcharging for shipping! And even if you did want to pass these charges along, automating these calculations can be difficult.
• Supplier Errors
  • Even the best dropshipping suppliers make mistakes fulfilling orders – mistakes for which you have to take responsibility and apologize. And mediocre and low-quality suppliers will cause endless frustration with missing items, botched shipments and low-quality packing, which can damage your business’s reputation.

Small businesses are the lifeblood of the economy and face a multitude of challenges in the line of business. Navigating through the accounting and tax landscape can be difficult and an unnecessary hassle while you are trying to manage your daily business operations and plan out your long term strategy.

Our team can help you to handle and understand the financial side of your business, so that you are always in control of your bottom line. We have experience with a variety of businesses types including gas stations, convenience stores, restaurants, and construction companies. SDG Chartered Professional Accountant can handle the intricacies of your payroll, inventory systems, and monthly bookkeeping, so that you can focus on your core business competencies.

Small business tax returns can be confusing to navigate depending on many factors, such as the nature of your business and what type of business you have set up (Sole-proprietorship, partnership, or corporation. Our firm can cut the stress and confusion by leveraging our expertise to make sure that your business take advantage of all taxable expenses and tax credits.

Accounting & reporting for the automobile industry including but not limited clients to: dealerships, importing, exporting and parts.

Evaluating the nature of the business and identifying key regulatory and tax constraints. Identifying cash flow and tax liability related issues.

Resolving HST audits by liaising with the CRA to understand the case file and primary objectives of the audit. Listing and organizing purchase invoices and bill of sales. Accumulating input tax credits to generate HST return.

At SDG Accountant our team of experts can tailor an Accounting and Tax approach for your business needs. Whether your projects last only several weeks, they span over the course of several years, or you have a combination of short-term and long-term projects, we can tailor your accounting methods to help meet your goals.

For clients that are looking to defer their revenues to the period where the contract is finished, we can perform
your accounting using the Completed Contract Method. Alternatively, you are looking to smooth out the recognition of your revenues, we can account for your revenues using the Percentage of Completion method to take into consideration the portion of projects completed during the year.

Long-term projects face additional financing and cash-flow concerns. Our professional accounting reports and
analysis can assist you in analyzing your current finances to determine your long-term needs. In addition, our team can ensure proper recording of your long-term financing under professional accounting standards through the capitalization of your borrowing costs under IFRS.

Depending on your cash flow needs, optimization of your taxes payable, financial reporting needs, and other options, our team will work directly with you to customize your business reporting and tax strategies, to help meet your long-term goals.

Book a consultation with our accountants to determine how we can tailor our services for your needs.

Our team has worked with a wide variety of legal professionals including: Sole Practitioners, Multiple Partner Firms (LLPs), and Professional Corporations. Many lawyers face financial management difficulties associated with a high-volume practice, niche industry practices, insurance litigation practices faced with cash flow issues of working files that may take years to close, and immigration law professionals who also offer their services in foreign countries outside of Canada. Outsource the financial side and focus on what you do best for your clients by letting us handle your accounting, bookkeeping, taxation matters, in accordance with LSUC standards.

Our firm is familiar with different practice management software that tie in with your financial reporting system such as: PC Law & Firm Central. We can help you set up advantageous tax planning for your law firm to ensure tax compliance while minimizing your tax obligation.

We have assisted numerous Toronto clients with the LSUC’s Financial Spot Audit and Practice Management Audit. We enjoy working with the entrepreneurial spirit that comes from small and medium sized practices in the Toronto area. We are particularly proud of the value we can add to newly formed legal practices who want to organically grow their firms.

The most common inquiries from clients in Medical Practioners and Dental Office industries are Bookkeeping Services and HST Remittance & Tax Planning.

• Bookkeeping and Accounting Service & HST Remittance

Medical Practioners and Dental Officer usually has good work-life balance. It is your decision to make whether enjoying the family time after work by outsourcing your bookkeeping work to us or you can work as a bookkeeper for yourself. Despite the differences in lifestyle and priorities, neither of our client has regret to let us help with their accounting records. As Chartered Professional Accountant firm, we are licensed, experienced, and effective in solving difficulties in accounting and taxation field just like yours.

• Tax Planning

With more clarity on the Tax Reform Proposal which targeted wealthy small business owners, Medical Professionals and Dental Officer are facing stricter requirement on both profit-sharing and holding passive investment portfolio within corporation. Failure in tax planning or disclosure will lead to higher tax liability or even trigger CRA penalty and interest.

Property managers for both residential and commercial real estate are always busy, assisting their tenants with all kinds of work inquires and overseeing all aspects of concerns. Property managers need not only maintain a constant safe and comfort environment, but also address any potential risks in the property. We possess sufficient experience and professional knowledge in the industry and we can answer your questions with regards to Accounting & Bookkeeping, Tax Planning, HST Remittance, and Best practices.

Our team has experience dealing with property management companies and stressing the importance of budgeting and operating cost reduction. We are aimed to ensure our clients have accurate accounting records with minimized tax liability, which enables you to advance your business development plan and have efficient time to strategize your business toward your goals.

Property holdings further complicate the already tricky landscape of accounting and tax. Not only do property owners need to consider the revenues and expenses pertaining to their tenants, it is important to prudently plan your accounting and tax matters regarding your property holdings. Our firm is experienced in the different options regarding your property, letting you keep the most money in your pockets while keeping an eye on future issues.

As self-employed individuals, real estate agents are constantly on the run, helping their clients through the difficult transition of selling and purchasing their property. Likewise, SDG Chartered Professional Accountant can assist in providing detailed accounting and taxation services for your business activities. We understand that you have a variety of concerns related to your business, including HST remittance; vehicle use for business; and home use for business. Let SDG Chartered Professional Accountant leverage their professional experience to take care of the issues regarding your individualized accounting and taxation needs, so that you can stay focused on your core business.

We provide Bookkeeping, HST filling and all types of accounting and taxation services for mid-to-small retail clients such as convenience stores, online seller, and restaurants.

By leveraging our professional accounting expertise and QuickBooks Online, we are committed to offer excellence and reliable services to our clients at reasonable cost.

With more regulations and uncertainties revealed in the industry, mid-to-small sized manufacturers and distributors are facing various challenges from both day-to-day operation as well as financial needs.

SDG Accountant Team understand the risks and opportunities in the industry. We offers the best value in proactive tax planning, tailored bookkeeping services and management consultation for business owners.

As a driver you are always on the go from drop point to drop point in the course of your work. Along the way you rack up a variety of expenses but it’s important to get in touch with an accountant who can make sure that you are writing-off the right expenses.

Our team has helped other drivers to review their expenses in order to minimize their tax burden, so that they hold onto more of their hard earned money. We can help you arrange and plan your finances and taxes so that you have the most money possible at the end of the year to use in other aspects of your life.

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Restaurant owners are always stressed with taking care of customer, promoting in target segment, dealing with supplier, etc. We are here to share your pressure. The most common inquiries from Restaurant clients are Bookkeeping Services and HST Remittance & Tax Planning.

• Bookkeeping & Accounting Service and HST Remittance

We are tech-efficient and we provide Bookkeeping & Accounting services to our clients through QuickBooks Online. Instead of meeting with us on regular basis and handing over piles of your transactions, we are able to pull over your business records online. Therefore, we will prepare financials and HST remittance for you without distracting your attention from operating your restaurant. We will meet quarterly or whenever you needed to answer your concerns.

By downloading the QuickBooks Online App on your phone, you can see the progress of our bookkeeping. In addition, you can view your income in difference sources as well as various categories of expense, which allows you to understand your financial conditions in greater details.

• Tax Planning

With more clarity on the Tax Reform Proposal which targeted wealthy small-to-mid business owners, most restaurant owners are facing stricter requirements on both profit-sharing and holding passive investment portfolio within corporation. Failure in tax planning will cost your unnecessary tax liability while failure in proper disclosure will result in CRA penalty and interest.

SDG Accountant has expertise in dealing with Convenience Stores & Gas Stations around the Greater Toronto Area. Sami Ghaith’s family has been in the business of operating and managing Gas Stations & Coin operated car washes for the past 30 years.
It is essential to keep good record keeping for your business and managing inventory is also as important. We recommend doing monthly bookkeeping and a month end counts of your inventory in store to match to cost of goods sold, as well as monitoring theft.
For Gas stations, franchisees usually take commission on gas sales. This commission is earned as revenue towards your business, as the business owner essentially at times does not physically own the gas itself. Commission reports are printed and accounted for.
We ensure the proper tax treatment of physical assets in a gas station, such as the depreciation of equipment and building to minimize tax liabilities in accordance with the Income Tax Act. If you are a Gas Station, Carwash or Convenience Store owner and need assistance with bookkeeping, accounting & taxation please contact us for a consultation.