Welcome back to our blog series on business valuations. In each post we explore a fundamental valuation topic to help you better understand the steps we take to appraise your business. Most professionals will mention using an “EDBITDA multiplier” as a tool for determining the value of a business. Let’s break that down. EBITDA is…

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In May, the Canada Revenue Agency (CRA) transitioned to online mail as the default method of delivering most business correspondence. The CRA’s implementation will proceed as follows: • May 12, 2025 – All new businesses and program account registrations • June 16, 2025 – Existing businesses registered with My Business Account or those that have…

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For those of you who have spent any time within the walls of Pinnacle, you have probably heard us drop the “value” word. Often this is in the context of our billing practices as we apply a value-based model, rather than the tired billable hour. And other times, we are in front of a whiteboard…

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Introduction: In the small owner-managed business environment, the question of compensation is a recurring theme that often leaves entrepreneurs pondering the best compensation strategy. Clients frequently approach us with questions like, “How should I pay myself?” or “How should I compensate my employees?” While a conventional response might consider the tax aspects of dividends versus…

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Self-employment offers a sense of freedom and autonomy unmatched by the standard employee-employer relationship. But this can come with the sacrifice of financial stability, especially at the start-up phase. Ineligibility for Employment Insurance (EI) coverage is one of those trade offs. Certain shareholders and proprietors fall outside the scope of insured individuals in the Federal…

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When an individual runs a business in a corporation, they have the choice whether to pay themselves through wages or dividends. There are several considerations that factor into this decision, one of them being contributions to the Canada Pension Plan, or CPP. What’s the difference? When a shareholder is remunerated by wages, the process is…

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The COVID-19 pandemic thrust many employers into uncharted territory – requiring rapid adoption of remote working technology and development of guidelines to maintain productivity while still preserving some sort of positive work culture amongst employees. Many businesses were quite successful in this transition and their employees may now have the ability to perform 100% of…

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Business succession planning is a critical process for business owners in Canada. The process involves planning for the transfer of ownership and leadership of a business to another person or group of people, either within or outside the family. According to a study conducted by the Business Development Bank of Canada, 60% of small and…

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We are often asked by our clients how they should treat the carrying costs of vacant or undeveloped land for tax purposes. We are hopeful this blog will assist people to understand the appropriate treatment. Background Owners of vacant land incur carrying costs associated with ownership. Examples of such costs include property taxes, general maintenance…

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If you have an employee that is valuable to your company, you may want to give them a gift for a special occasion, such as their birthday or the birth of a child. But at what point does it become taxable to them? Cash gifts All cash gifts to employees are taxable no matter the…

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