Annual reports are a big undertaking for many organizations. They involve a variety of departments and regularly are more than a statement on how the year shaped up financially. They also include information about special projects, staff and other aspects of an organization. While an organization's staff usually takes the lead on preparing the annual report, an accounting firm is often contracted to lend additional credibility to the financial statements within the report and prepare what is known as the "auditor's statement."
Not every business is required to put together an annual report as part of their financial statements, but if your organization is, you'll want a firm on your side experienced with understanding the nuances of this sometimes complex document.
The team at Invictus comes with a diverse background when it comes to preparing annual reports. From client-side to firm-side, we've seen and worked on all kinds of annual reports in industries ranging from public and private sectors, small businesses to large corporations and resource based organizations to real estate and property management firms. Because of that scope of experience, our team knows when to jump in and help put the report together, or when to provide the basic requirements.
Annual reports are generally prepared to coincide with annual general meetings. If you have an AGM and annual report coming up and want advice or want someone who can get involved immediately, let us know; our team would be pleased to lend a hand with one of the most important documents your organization produces.
The flexibility of working from home or running a contractor-based business can be a wonderful option for workers, but both employers and the people they hire, need to be conscious of what makes up an employee relationship and what defines a contractor relationship.
A few months ago, we heard from an employer who was confused as to whether their worker was a contractor or an employee. The worker had come to them stating they were a contractor and for the employer, that seemed like a solid answer. After all, the individual had their own business number, company name and billing process. They had an office within their residence and occasionally worked there.
Unfortunately, to the CRA, there is more to the definition of employee or contractor. In Canada there is a Four-Point Test that allows workers and employers to define the nature of their relationship. Flexibility in working arrangements is commonplace and no longer does having a home office define a contractor like it once did, even having a business name and number isn’t enough. Categories like control over the work and how it is done, ownership of tools, chance of profit or risk of loss and integration are all aspects that must be addressed.
When the Four-Point Test was applied to the case of the employer who came to us, we found that for a number of reasons, the worker they had hired was in fact a contractor. The worker made decisions on where and how to perform the work and used their own tools to do so in addition to other aspects.
Before making the decision of who is an employee and who is a contractor, be sure to check the CRA’s guidelines to avoid concerns down the road.