TAXFlash News from IncomeTaxCanada.net

Jim Maroney

:: Kiss business bank fees goodbye with bizSmart, offered through Staples

:: If you’re a small business owner you’ve probably become somewhat resigned to paying monthly bank charges for this, that and the other. Now you may have become accustomed to business bank charges but I’d lay a hard-earned loonie on the line that you haven’t accepted such charges.

Knowing that the bank pays you nothing, or virtually nothing, on any cash balance in your business account yet charges you a hefty interest rate when you need to use their money, it’s understandable if bank charges are a gnawing concern.

As a small business owner fed up with monthly bank charges, are you aware that an option exists that may enable you to kiss such fees goodbye?

I generally try to avoid using this space to shamelessly promote specific products but every now and then something truly unique comes along that begs to be mentioned. In this case, the product is known as bizSmart and it’s available through none other than Staples Business Depot.

The key benefit offered by bizSmart is no-fee daily banking – yes, you read correctly – no bank fees. Fair enough you say but where does one find a bizSmart bank. Well don’t bother looking for any bricks and mortar branches because there aren’t any.

In place of the traditional banking experience, business transactions are conducted via the internet 24/7, over the phone from 7am to 1am (EST) or by using any of approximately 4,200 bank machines across the country. You say you’ve never seen a bizSmart bank machine – that’s because bizSmart makes use of the CIBC bank machine system. While you can’t do your business banking at CIBC branches you can conduct transactions such as deposits and withdrawals using their bank machines – all without charge.

And the savings don’t stop at bank charges either. bizSmart members can take advantage of certain discount buying opportunities at, of course, Staples and then there’s FedEx to name a few of the participating businesses.

Management services are also available through bizSmart including the computerized payroll services offered by Ceridian, on-line discount incorporation by e-incorp, credit check services by Equifax Canada Inc. and discount accounting software by QuickBooks.

The bizSmart website includes a nifty savings calculator that can be used to give business owners some inkling of the potential savings that can be achieved by using bizSmart for their daily business banking needs.

Not surprisingly, accessing the benefits of bizSmart requires business owners to take out a “membership”. Membership is only open to Canadian business owners who are legal-age residents of Canada operating a business that does not require multiple signatures when cheques are signed.

Eligible business structures include proprietorships, partnerships (50/50 ownership only) and incorporated companies where one individual owns 50% or greater, or in the case of more than one owner, where two individuals each own 34% or greater.

Application for membership can be done via the internet, over the phone or by visiting a bizSmart Centre inside select Staples. Just so you know, the Staples on the border of Pitt Meadows and Maple Ridge does not have a bizSmart Centre – our closest bizSmart Centres are located at Coquitlam, Langley and Abbotsford.

If you choose to apply using the internet or over the phone you’ll still have to personally visit a bizSmart Centre to complete the registration process. That being the case, I’d forego the internet/phone option and go with the physical-visit alternative since you’re going to have to do so regardless.

During your physical visit to a bizSmart Centre you’ll need to bring the following information to finalize your registration:

• business registration and franchise agreement for sole proprietors and partnerships;

• articles of incorporation, articles of amendment, trade name registration and franchise agreement for incorporated businesses;

• 2 proofs of identification for each applicable owner and signing officer, and possibly

• Notice of Assessment if you are applying for more than $7,500 in total credit.

Finally, bizSmart is not for every small business. If, for example, your business involves retailing and a lot of coinage bizSmart may not suit your needs since you cannot deposit coin through bank machines and bizSmart doesn’t have physical bank branches. This program is really designed for businesses that do not transact heavily in cash (bills and coins). Nevertheless, there are many businesses that will be able to take advantage of the savings offered by this program. If you think you might be one of them, be sure to check it out.

...for more Canadian Tax Information

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Free Tax Advice Article Submitted to Income Tax Canada.net exclusively by Jim Maroney
CA Canadian Chartered Accountant with Brown, Andrews & Maroney in Maple Ridge, BC, Canada

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