Emil Alphonsus
Emil Alphonsus CA CGA CPA(MI) - Chartered Accountant - Cell (647) 998 6705
Alphonsus & Associates (416) 493 8220 www.alphonsusca.com
Coordinating Canada Revenue Agency Business Tax Audit, Reassessment & Compliance; Provincial Sales Tax Audit; GST and Payroll Audit, Compliance & Remittance; Business Startup Assistance including Provincial & Federal Business Registration, Provincial & Federal Business Incorporation and Sole Proprietorship & Partnership Business Registration; and Financial Statement & Business Plan.
GTA Square - 2nd Floor (Middlefield & Finch)
5215 Finch Avenue East Toronto M1S0C2
Adequate surface & underground parking available
Serving business owners in Greater Toronto area including Ajax, Aurora, Brampton, Etobicoke, Markham, Mississauga, Newmarket, North York, Oshawa, Pickering, Richmond Hill, Scarborough, Stouffville, Toronto, Vaughan, Whitby and Woodbridge.

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Smart business owners never settle for persons who think accounting and business tax filing are nothing more than adding and subtracting. Few business owners try to save money by relying on inexperienced personnel and performing accounting and tax filing shortcuts. Several bookkeeping functions are best handled by an experienced professional accountant. Make sure your accounting and tax returns are handled by a professional accountant with years of experience - This is the cost effective way of doing business.

A bookkeeper records the numbers. A professional experienced accountant analyzes the numbers to save the business owner’s tax, prepare tax return and guide the business owner towards a successful operation. Also a professional experienced accountant can make intelligent decisions that will enable a business to become more successful.

Emil Alphonsus offers a wide range of services to his individual and business clientele including sole proprietors, business entrepreneurs and corporate business partners & shareholders. His clients benefit from personalized, quality service that is beyond comparison. Emil Alphonsus view his role in the financial reporting process as an opportunity to provide constructive solutions for maximizing his client's profitability and efficiency. Emil Alphonsus provides financial reporting on all three levels of assurance:
Audit - an intensive examination with the highest level of assurance.
Review - some analytical procedures conducted with limited assurance.
Compilation - based upon client information provided and used primarily for internal use.

Emil Alphonsus can provide comprehensive, flexible financial & taxation strategies that address the issues affecting your business.

Emil Alphonsus can identify key tax planning opportunities that minimize both your current and future provincial & federal tax liabilities. He provides his clients with the taxation expertise and knowledge that they deserve throughout the year. His tax services offered include, but are not limited to:
Individual tax planning, business tax planning
Personal Tax return, Business tax return, Tax return for estate and trust, Tax return for not for profit organization
Provincial sales tax PST and federal goods and services tax GST commodity tax planning and compliance
Tax considerations in matrimonial settlements
Tax effects and consequences of buying/selling a business
Tax effective retirement and estate planning

Emil Alphonsus has more than 15 years of experience in obtaining waivers of withholding taxes for non residents (pursuant to Regulation 105 of the Income Tax Act of Canada) who provide services in Canada with no permanent establishment here.

Forecasting is a necessity when trying to effectively manage and lead a business to profitability. From simple projections to complex financial modeling, Emil Alphonsus can assist you in achieving your company's financial goals.

A profitable business can still run into trouble due to cash flow issues. Emil Alphonsus can help your business in forecasting and evaluating your company's financial condition, estimate financing requirements, and track cash-flow sources and uses. All business owners know the importance of cashflow.
Many businesses manage short-term cashflow crises without proper actions. Any business that manages cash flow problems with ad hoc responses will put more pressure on its long-term sustainability. The only way to assess cashflow is to understand the balance sheet, and how much cash it has absorbed or released into the business. Working capital is one of the most significant measures of a business’ ability to support day to-day operations. Businesses which focus on working capital efficiency reduce their dependence on external funding, and may gain a competitive advantage. The three components of working capital that drive cashflow are: account receivable, inventory, and accounts payable. These absorb and release cash to fund business operations. It is great to make a profit, but how much cash profit is left as surplus after its partial absorption onto the balance sheet?
To improve your cashflow management:
Turn your Profit and Loss Budget into a Cashflow Budget.
• Factor in seasonality and determine breakeven points.
• Test cashflow by performing best and worst case analysis.
• If you are planning for growth, can funding be based on historical cashflow drivers?
Understand your accounts receivable
• Make this a key performance indicator  as part of monthly management reporting.
• Evaluate the historical accounts receivable days and set new targets.
• Review individual customers and exposure. Renegotiate credit terms.
• Tough times mean higher bad debt risks.
Understand inventory levels and days. Excess inventory is an overlooked source of cash.
• Review inventory levels by line. If there is stock build up, this may indicate falling demand. Implement strategies to reduce stock levels and release cash.
• Review raw materials and optimum stock levels. Can the supply chain be reduced?
• Review supplier ordering procedures.
Accounts Payables
Do you pay early and collect cash later? If your accounts receivables days are 70 days and your accounts payable days are 30 days, you have a gap of 40 days in which the balance sheet is absorbing cash.
External Funding
• Understand the covenants you agreed to when you raised the debt.
• Implement a system so these are reported as part of performance management.
• If you foresee problems, tell your lenders. Know where you stand so you can review your options before a crisis.
• If you are seeking extra funding, use tools which can analyse your business from a banker’s perspective.

Tax audit is a way for the Canada Revenue Agency-CRA to monitor and inspect business tax returns, GST, payroll records etc, and to maintain public confidence in the fairness and integrity of Canada’s income tax system. Tax audits by the Canada Revenue Agency can be the bane of any business. As if having to pay the additional sum weren't unpleasant enough, business owners who get audited have to endure the time-consuming and aggravating process of the tax audit itself. The time and expense alone can be a devastating blow. Tax audit is an experience every business owner hopes to avoid. Knowing in advance what can trigger a tax audit and what tax auditors are looking for if you do get audited can help you structure your systems to clearly demonstrate the validity of your business practices. The Canada Revenue Agency-CRA is currently developing plans to increase tax audits. One area of particular focus is individuals with incomes exceeding $100,000, especially business owners, professionals and investors in partnerships. Small businesses are perceived as being major offenders in noncompliance with tax laws because many have cash components which are not well documented and have loose employee record keeping procedures. Most business tax returns are selected for audit review from a list of business tax returns with audit potential. From these lists, Canada Revenue Agency-CRA chooses specific business returns to be audited. Canada Revenue Agency-CRA compares selected financial information for current and previous years of clients engaged in similar businesses or occupations. If there is a significant non compliance within a particular segment of clients, Canada Revenue Agency-CRA audits its members on a local, regional, or national basis. Canada Revenue Agency-CRA conducts a tax audit if they get information from other tax audits, investigations, or outside sources.  Canada Revenue Agency-CRA selects tax files for a tax audit because of their association with other previously selected tax files. If your business is selected for a tax audit by Canada Revenue Agency-CRA the tax audit may include records from previous years. Realistically, though, one would assume that a tax audit would not go back further than six fiscal years, as the Canada Revenue Agency-CRA requires that business records be kept for six years. Ontario Ministry of Finance uses systematic methods and electronic data to evaluate and determine those businesses which are at potential risk for underreporting and/or underpaying Ontario Sales Tax-PST. Emil Alphonsus has coordinated numerous business tax audits and sales tax audits for his clients. Since most of the tax auditors from Canada Revenue Agency-CRA and Ontario MInistry of Finance are professional accountants, as a Chartered Accountant, Certified General Accountant and Certified Public Accountant, Emil Alphonsus deals with tax auditors very well. Emil Alphonsus has an extensive rapport with various Canada Revenue Agency (CRA) tax service offices.

Canada Revenue Agency CRA takes the position that a business which does not have a profit expectation is only a hobby. Make sure you operate your business from day one with expectation of making a profit, even if you subsequently turn a loss for the first few years. If you expect that your new business will show a loss for the first few years before then becoming profitable, it is imperative you drawup a business plan showing in as detail as possible just how you will be eventually profitable. Without such a business plan, and in the event of a Canada Revenue Agency CRA tax audit, you will likely be adjudged by Canada Revenue Agency CRA as indulging in a hobby as opposed to running a bonafide business.

Business owners are often so focused on their day-to-day business activities that they give little thought to who will take over their businesses when they eventually retire or sell. But if you are a business owner contemplating retirement or sale in the next 5-10 years, it is time to start planning your succession now, particularly given the current economic uncertainty. Neglecting to plan for the day you step down from your business may mean you fail to achieve the value and consideration to which you are entitled when you sell or retire. A well designed Succession Plan can make all the difference to the next stage of your life, whether it be retirement or a new venture. An effective plan involves:
• Assessing your business - with professional assistance, business owners need to carefully review their business and its financial performance, both current and forecast, to evaluate their personal position within the business and to identify succession alternatives.
• Establishing your objectives and strategy - an effective Succession Plan will include your personal, financial and business exit objectives, and your strategy and timetable to achieve these.
• Understanding Business Valuation metrics – a key element of any Succession Plan is the valuation methodology. Many business owners set a price for their businesses based on the financial sum they require without understanding the metrics that determine value. It is crucial to seek advice from professionals experienced in valuation so that your exit price is realistic, achievable and not underpriced, let alone overpriced.
• Engaging in the sale process - a professional well-planned sales process will optimise your financial outcome. For a successful sale, it is important to assess the sale alternatives, understand your business’ value and financing, identify potential acquirers, and understand the implications for your taxation and retirement planning.
• Identifying potential acquirers – there are a number of options here. A new business owner may install a new management team. Alternatively, it may be that you have an opportunity to develop new leadership from within your business who can go on to purchase your business with private equity funding.
• Ongoing support - if a new owner takes over management of your business, they may require your ongoing advice and involvement to ensure a smooth transition. Consequently, you may be needed to stay on for an extended period. This may be critical to the success of the sale transaction and the Succession Plan. With internal replacements however, the handover process can begin several years before your exit.
• Planning your retirement - this is a critical element of any good Succession Plan as it links business succession to your retirement funding.
• Transferring ownership - once the sale process is complete, it is essential to deal with all the legal aspects, including the release of all guarantees and any liabilities. Successful succession planning requires time. Starting 5 to 10 years ahead means you can manage and plan your exit gradually, and put yourself in the best position for the next stage of your life.
Once you have a viable Succession Plan in place, it needs to be managed and amended as your circumstances change. Keeping the plan up-to-date reduces the risk of the plan’s failure and risks to your business, and your financial future.