Fujitsu

A New Standard in Financial Processing – Fujitsu’s ScanSnap and HubDoc Accounting Software

 

A New Standard in Financial Processing

When technology and (GAAP) – (Generally Accepted Accounting Principles) work together in harmony, it is indeed a beautiful thing. Fujitsu continues to show a commitment to evolve each year and that is exemplified by their industry leading status of having the number one global image scanner market share for nearly a decade.

Working in the cloud creates more time to manage resources efficiently and increases workflow productivity. Deviceless scanning is even possible with Fujitsu’s ScanSnap Cloud, as it delivers scanned data directly from the ScanSnap iX1500 to your favorite cloud services, without a computer or mobile device. ScanSnap Cloud automatically classifies your scanned images as documents, receipts, business cards or photos, and sends them to the appropriate cloud service based on your pre-set profile, all while reducing paperwork.

Enter Hubdoc, a software company that helps accountants save time, scale their practice, and build deeper relationships with the businesses they serve by automating document collection and management. Hubdoc’s ever-growing partnership with Fujitsu pays dividends to both technology users and financial software end users. This new software is based on basic accounting rules that turn “shoe box accounting” into a digital workflow that is both intuitive and user-friendly. Simply put – Hubdoc enables businesses to easily and securely scan and submit financial documents to their accountant or bookkeeper from anywhere using the cloud.

Hubdoc allows you to collect, sort, and file all your physical documents onto the cloud in a secured “digital filing cabinet” that is easy to access and search. No more chasing documents or conducting manual data entry. Hubdoc makes it easy for the finance and accounting departments to access their small and large business clients’ financial documents. It automatically collects bank statements, bills, receipts, and invoices from hundreds of suppliers and financial institutions. Clients can also upload documents via Hubdoc’s mobile app, desktop, and email.

With the integration between Hubdoc and Fujitsu’s ScanSnap, going completely paperless is painless. Ultimately, the ScanSnap iX1500 helps you save time and money without ever compromising on the quality of your work.

The convergence is here. Fujitsu and Hubdoc now share a partnership designed for accountants in need of a better, more efficient way to service their clients.

With Hubdoc’s intuitive software integration with Fujitsu’s user- friendly hardware, the usual setbacks are a thing of the past. To learn more about Hubdoc’s accounting software benefits, please visit: www.hubdoc.com. To learn more about Fujitsu’s ScanSnap iX1500, please visit: www.fujitsu.ca

Check out the full article in the next issue of Money Magazine or online at  www.MONEY.CA/fujitsu

 

 

Dying isn’t free (no good deed goes unpunished!)

I know this sounds a bit irreverent or flippant however it is meant to stimulate some hard thinking about the real costs of dying. Sure, there are lots of lists around, but I haven’t found 1 yet that covers everything I have seen in nearly 43-years in this industry. Is this list perfect? Absolutely not – but it will get you thinking about your own and your family’s situation. Remember, not all of these will apply to you – but some will – and the costs range widely.

* Probate Fees * Legal Fees * Copying and certifying fees * Paid searches for titles, etc. * Legal notifications to family * Legal notifications to creditors * Asset Transfer fees * Estate Accounting Fees * Terminal Tax Return Fees * Estate Tax Return Fees * Rights and Things Tax Return Fees * Ongoing Tax Return Fees if estate not settled within 12 months * Testamentary Trust Tax Return Fees *Preparing and filing tax election fees (estate and personal) * Executor and Trustee Fees (annually until Estate and all trusts closed) * Executor and Trustee disbursements – copying, telephone, faxing, certifications, mileage, parking, travel expenses * Valuation fees – real estate, listed personal property, personal property, real estate and other capital and/or depreciable property * Transfer costs for title transfer to Executor and/or Trustee and eventually to residual beneficiaries * Commissions paid for asset sales – real estate, estate sales, sale of listed personal assets, if necessary * Commissions paid to investment advisors for selling stocks and bonds not held in managed-money accounts *Income taxes payable – terminal tax return, estate tax return(s), Rights and Things tax return, Trust tax return(s) * Tax due on transfer of pensions and registered assets to other than spouse * Shrinkage of realisable asset value due to urgency of sale – tax paid on FMV not $ received – must replace lost $ * Account closing fees on nominee accounts and self-directed investment accounts
* Court fees – Probate and other as necessary if Will contested * Court costs if you die intestate * Banking Fees – estate bank accounts, trust bank accounts * Rental Fees – safety deposit box or other secure location *Funeral, memorial and related costs – cultural, faith-based, community or family expectations. Wake or similar * Costs of collecting promissory notes owed to deceased – loans to family members and businesses * Terminal care costs not covered by Government, group or personal plans * Legal costs to defend Will from challenges * Payment of all legally enforceable debts – including ones you guaranteed or co-signed * Perpetual pet care * Costs of care for children and other dependents (maybe your parents!) * Cost to close your social media accounts * Payment for ongoing business management until it is sold * Short-term emergency funds for survivors * Ongoing income for survivors including education costs * Cash Bequests * Murphy is alive and well – expect a visit along with family discord! * Your guess: ______________________________

I can promise a few things about this list: a) your estate will have at least one cost not included here; b) you will be very unpleasantly surprised at the total amount of money (and time) involved; c) your estate will be cash-poor – not enough cash in the bank to pay these costs which means that; d) the net value of your estate, without proper planning and a source of replacement tax-free cash, could even be bankrupt which means your family and heirs would get zero. Do you and your family need assistance?

Investing Is Tough Stuff

By: Don Shaughnessy

Profit is a poor proxy for success and investors should not rely on the number without considering other facts.
Strangely a business can become bankrupt while it is profitable. This profit ambiguity causes problems for business owners, managers, policy makers and investors.
What do you mean by profit?
Suppose an incorporated business earns $1,000,000 using the tax rules and generally accepted accounting principles (GAAP) In Ontario, the tax bill would be $220,000 leaving $780,000 to invest. Clearly profitable!
BUT, only within the system of GAAP and taxation. In the real world, the result might well be very different.
Suppose the business must invest $1,500,000 to remain competitive in its industry, (same market share and same technology as the leaders in the industry.) Did it really make a profit or did it really lose $720,000?
The economic answer is it lost $720,000, and even that is not simple.
By investing the profits and borrowing, the business continues to exist and possibly a weak entrant in the industry will become weaker still and succumb. So the true long-term economic loss is actually somewhat smaller. Maybe a lot smaller and possibly not a loss at all. Some of the cash loss is an investment in future market share.
Management faces the task of deciding if they will survive long enough to benefit. Especially true if the government bails out the weak ones.
For those looking at profit alone, other expenses matter too. Marketing, advertising, R&D, employee training and more, pay off over long periods but have immediate cost. Good for tax expense but hard for the analysts to validate. Some other expenses, like pensions, have a visible price today but an unknowable future cost.
In both accounting and taxation, profit is not the result of facts but rather is the result of rules and opinions. Things like depreciation rate, inventory and product obsolescence, bad debts, investment rate to be earned on the pension fund, future technology effects and more.
As an investor, is there anything at all to be gleaned from the financial statements?
Maybe.
In most cases, it makes sense to pay attention to the management letter. I know a high performance fund manager who looks for the words challenge or challenging in that letter. If he sees either he throws the statement away. In his words, “I have only limited resources, so why would I invest with people who have challenges?”
When looking for an investment, use commons sense first. I like the product, I like management, I like the industry and so on. Then look at the numbers.
• “Cash is real, profit is opinion.” Or at least cash is more likely to be real because you go to jail if you fool with it. Not so much with profit.
• Look for dividends. They impose a discipline on management and the cash paid out reduces the homeless dollar problem. When management finds that problem, some pretty dodgy projects get funded.
• When things go wrong, quit quick. Holding losers and waiting for recovery is a losing tactic. The price of tulip bulbs, which peaked in Holland in February 1637, has, as yet, not returned to that high.
Good look!
Don Shaughnessy is a retired partner in an international accounting firm and is presently with The Protectors Group, a large personal insurance, employee benefits and investment agency in Peterborough Ontario.  don.s@protectorsgroup.com