Edmonton Business Consultant | Self Employed CERB Benefit

I’m going to explain to you how the Canadian wage subsidy program is actually going to punish growing small businesses who employ 50% of Canada’s workforce, but don’t worry. I’m not going to make this too technical. I’m willing to dumb it down for people. Just in case you are a drama teacher who is say in charge of the country. You don’t know how to do math, or maybe you’re in charge of the finances of a country. And you’re, you’re a rich kid. Who’s inherited a big Edmonton Business Consultant. You don’t really understand how small businesses work. This video is for you. I’m going to make it for you.

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Josh sprawl from us. Burl and associates chartered professional accountants. As always, we are here to help Canadian businesses beat the odds. And I’m going to explain to you how the Canadian wage subsidy program is actually going to punish growing small businesses who employ 50% of Canada’s workforce, but don’t worry. I’m not going to make this too technical. I’m willing to dumb it down for people. Just in case you are a drama teacher who is say in charge of the country. You don’t know how to do math, or maybe you’re in charge of the finances of a country. And you’re, you’re a rich kid. Who’s inherited a big Edmonton Business Consultant. You don’t really understand how small businesses work. This video is for you. I’m going to make it for you. Okay? So the first part we have to understand is there’s a couple of different variables here. There is revenue.

There is wages, there is overhead, and there is income. I’m going to start with the Edmonton Business Consultant that isn’t growing, that isn’t providing more jobs and I’m going to call them no jobs, inc. And we’re going to look at what no jobs inc did in March of 2019, no jobs inc. In March of 2019 had 30,000 in revenue. Okay? They paid out 10,000 in wages say they have two employees at $5,000 each and now they also have $10,000 in overhead. That means no jobs, inc is going to make $10,000 a month in the month of March, 2019 a year ago. Let’s fast forward. Let’s fast forward. Now we have no jobs, inc. No jobs. Ain’t here in February of 2020. So just a month ago, no jobs was still at $30,000. They still only have $10,000 in wages. They haven’t grown their employment for since the beginning of time, you know what I’m talking about? The type of company they had, the same two employees. There, you call up them on the phone. They sound like they’re annoyed that you call them. They got someone in the back. Who’s always late calling in sick. They’re not on time with their projects. You know what I’m talking about? Successful entrepreneurs. This is not you. This is the companies that aren’t growing. Okay? They still had $10,000 in overhead. They’ve been stuck this way probably for a decade. They’re making $10,000 a month. Now we get into Armageddon. COVID-19 no jobs inc.

In March of 2020. Now their revenue, like a lot of small businesses has fallen off a cliff. They’re at $15,000 a month. Now they’re out by 50% of the revenues cut in half. Now the government has come by and said that, Hey, we are going to cover 75% of their wages. So that company, instead of paying $10,000 for those two employees is going to pay $2,500 to those employees. Okay? They are still going to have their $10,000 in overhead. That means this company is actually going to make $2,500. Not great, not terrible. As some other entrepreneurs are suffering out there. Now let’s extrapolate that for cause this program is supposed to carry out through April, may, June. It’s supposed to carry out for three months. So we’ve got three months here. So that company in the three months is going to make $7,500. They’re also going to get a forgivable loan of this $40,000 loan, 10,000 of which is going to be forgivable. So they’re going to come out of this thing with $17,500 in profits, not the 30,000. They would have came out in three months, but not so bad. Okay? Now I’m going to go from no jobs to accompany that I’m going to call jobs, eat the same thing, the same variables that we’re tracking here, revenue, wages, overhead and income.

Okay. So we have jobs inc jobs, inc. In March of 2019, they had $50,000 of revenue. They had created five jobs in this company, $25,000. They had an overhead of $25,000 in March of 2019. They weren’t making anything now, fast forward, fast forward here to jobs inc. In February of 2020, just before the pandemic hit this jobs inc had grown their company from $50,000 a month in revenue to a hundred thousand dollars a month of revenue, Spurling, associate clients. You know what I’m talking about here? This is the company that’s attending the bootcamp. This is the company. That’s 5:00 AM, six days a week. This is the company that is getting content out there. This is the company that is using their no brainer offer to get in front of their ideal and likely buyers. This is the company that is developing value and doing a one sheet so they can communicate their value for the customers.

And this is the company that is doing systems and checklists and they can deliver that product and service at a high value. That’s why they’ve grown into a hundred thousand dollars. Now what they’ve also done is they’ve created jobs. They’ve gone from creating five jobs to 10 jobs. So this company now is that $50,000 a month in salary on 10 employees. Their overhead has grown a little bit. Okay? So their overhead has grown to $35,000. Okay? At this point, rewarding for their hustle. They are now making $15,000 a month. Okay. Jobs inc. Making more money for the owner, creating more jobs, moving from five jobs at 10 jobs and post posted. No one’s job doing two jobs forever. Okay. Fast forward. We have jobs inc.

In March of 2020, their revenue has also fallen off a cliff from a hundred. They’re going back down to 52. They’re doing what they’re can. They’re doing deliveries. You know, if they’re a restaurant they’re trying to teach online fitness classes or their fitness organization, they’re trying to do zoom meetings. If they’re an appointment based Edmonton Business Consultant, they’re doing everything they can. But yet, even though their revenue has fallen off a cliff, it’s been cut in half your government in the incident. Wisdom is going to say they haven’t dropped at all. So instead of covering 75% of their wages, they’re only going to cover 10%. So they are going to have $45,000 in wage expense. Meanwhile, their overhead just like no jobs, inc is still the same. It’s $35,000. Now here they have $80,000 in costs. They go from making $15,000 a month to all of a sudden, now they are losing $30,000 a month.

Okay? Now our government has done less to help this one. The net let’s extrapolate that. What that’s going to mean for this person, that person is going to have to suffer through this for three months, let’s say on the assumption, that’s going to bring them to $90,000 in the hole of this, on this project. And now they’re going to get the same $10,000 amount for the forgivable loan. So let’s add that in there. Thanks very much. So now this person who is creating jobs, they are now going to be $80,000, $80,000 in the hole of this, okay. This is how our government set it up. So let’s review people thinking this is so complicated. There can’t be another option. There is a much better option. Let’s review what the government has set up for us. At this point, there is a 75% wage subsidy. There is a 10% wage subsidy.

There is a $40,000 with $10,000 forgivable. Well then they also have these mystery BDC loans, which I’m going to guess your qualification on that depends on what part of Quebec is based on, uh, you know, how much you’re going to qualify for that. And then the part that they’re not talking about, number five is they’re going to have to create a whole new audit department to try to audit interim financial statements from small businesses from month to month, which is an absolute exercise in futility, creating jobs during the pandemic, Josh wonder where those audit departments are going to be based. Now we’ve got four programs, simple program, every single year businesses file G fours. There’s a T for summary in it. It says, who is he? I exempt the people who are EDI exempt are normally the Edmonton Business Consultant owners. They’re family. They’re not arms like from the business. So we exclude those people. Most we exclude those people. We know how much has been paid to arms length employees, the real employees that we’re trying to protect here, trying to protect the businesses. We’re trying to protect, protect the employees. So what you do is let’s say jobs inc. Here, jobs inc. Last year, maybe they paid out $400,000 of wages. Okay? You send jobs inc.

$200,000, zero interest loan. Okay. That $200,000, zero interest loan, they got operating capital. They can figure things out. Now if job eight pays out $400,000 in wages again, this year, that means jobs inc only has to pay back a hundred K.

Yeah.

This program would not take six weeks to do. It would give businesses the freedom to make good choices because they’re the one that should be making the choices. Anyway, I guarantee you that our prime minister and our fight, the finance minister, they have no idea what’s happening in small Edmonton Business Consultant because I mean, you look at how this happens. We’re talking about one particular period. Small businesses don’t have regular income. I have a good client last year who had a flood in their office at this time, they’re supposed to drop 30% below the time period where they had a flood in their office, big businesses are far different than small businesses, big businesses. Their revenue is relatively predictable over time, small business cause can fluctuate, fluctuate greatly. And anybody who has grown their business since March of 2019, is going to be absolutely punished on this. Get this out to as many MPS as you can because the small business, the wage subsidy that’s been offered in Canada, completely punishes, small business who have grown their business and created jobs for this country.