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Easily Pay Vendors and Employees with Electronic Funds Transfers (EFT)

Over the years we have heard many stories from clients who have experienced the downfalls of paying with cheques; the biggest being fraud, theft/loss, and high costs.

Some of our clients have had cheques copied, others have had cheques that simply never made it to their destination. One client even had a Canada Post mailbox at their building vandalized and all their outgoing cheques stolen!

And really take a minute to think about all the costs of cheques: cheque stock (when did that get so expensive!?), envelopes, stamps, wages for processing and signing cheques, stuffing envelopes and getting them to the mailbox.

For those of you that have vendors that hold your orders until the cheque clears the bank, depositing the payment directly in your vendor’s bank account can completely eliminate that waiting period.

Cheques have been a cornerstone payment method in business for decades. But like most things in society these days, technology has given us a better way to pay.  EFT payments are not only faster and more convenient, they are more secure and will save you money. If you want to see proof, just try this cost calculator to compare.

Let’s talk about how EFT works:

You are probably familiar with using online banking to send single etransfers or pay individual bills. Those are great but they represent manual Electronic Funds Transfers. Imagine processing multiple payments to multiple employees or vendors at once in your accounting software and then simply uploading a single file to your bank that does all the work on their end while your system emails remittance advice to your vendors and employees.

Let’s say that again, process payments in your accounting software, which emails your vendors and employees their advice, upload the EFT file to your bank and you’re done!

Please contact us directly to discuss your EFT needs so we can help ensure you’re getting the right solution for you. But in the meantime, read more about the detailed features EFT Processing can provide you based on your current accounting software:

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Margin and Markup Formulas

Here are some common formulas we use in our line of work, when writing custom reports , creating custom databases, and when discussing concepts in training.

Depending on what values you start with, some formulas will be more useful to you than others. Remember, Margin and Markup are two completely different things. Margin represents your profitability as a percentage of your Selling Price. Markup represents your profitability based on your Cost. And of course, as you can see, the formulas for each are completely different.

Profit = Selling Price – Cost

Margin = Profit / Selling Price

Selling Price = Cost / (1 – Margin)

Cost = Selling Price – (Selling Price * Margin)

Profit = Selling Price * Margin

Markup = Profit / Cost

Selling Price = Cost * (1 + Markup)



Selling Price $300 – Cost $205 = Profit $95

Profit $95 / Selling Price $300 = Margin .31667  (31.667%)

Cost $205 / (1 – Margin .31667) =  Selling Price $300

Selling Price $300 – (Selling Price $300 * Margin .31667) = Cost $205

Selling Price $300 * Margin .31667 = Profit $95

Profit $95 / Cost $205 = Markup .46341

Cost $205 * (1 + Markup .46341) = Selling Price $300


Using these sample numbers, you are making 31.667 % Margin on your Selling Price of $300. And, you have Marked Up your cost by 46.341%.

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Be Prepared for Ransomware

It’s been a difficult day for one of our clients that was hit with a ransomware virus. This type of virus encrypts your files (makes them unreadable) and installs instructions on your system for paying ransom to the criminals that encrypted your files. If you decide to pay the ransom, and you’re lucky enough to be dealing with an ‘honest’ criminal, they’ll send you a decryption key, making your files usable again. But wouldn’t it be great if you have a great backup plan in place so you don’t feel the need to pay?!


If you have a good backup system, you might be able to recover your files (or most of them anyway) without having to pay the ransom.

Please, please, please discuss your backup with your IT company and make sure that you’ve got a solid strategy in place. Have them periodically do a test restore to make sure the backup is truly working.

In an ideal world, you would have multiple backups on multiple devices. This helps protect you if you don’t notice the virus right away. Imagine if you were backing up to a couple of USB keys or portable hard drives, swapping them out every day or two, and you were only keeping one backup per device. This means you only have a couple days worth of backups. What if your system was actually infected a week ago? Pay up!

Now, imagine you have a backup device for every day of the week (and two for alternating every other Monday), and three more for rotating month-end backups, and even a few for year-end backups. That might sound like a lot of devices but this is insurance for your data. It’s so important!! If you had this kind of insurance, you’re much more likely to be able to recover quickly, and with as little expense and extra effort as possible.

Ransomware fees typically start at $3,000 – $5,000 and the longer you wait to pay, the higher it goes.

If you don’t have time to discuss this with our IT company today, we strongly recommend that you set an appointment in your calendar to remind yourself to do this as soon as possible.

Hard Copies

It used to be that people would print their General Ledger Transaction Journal, their customer invoices, and other vital documents, every day because they were nervous about having everything stored on the computer, with no physical copy. But, as people started to trust computers more and more, they stopped printing in favour of saving some trees, saving on physical storage space, saving time and reducing the expense of paper and toner. One has to wonder if there’s an argument for picking up this habit. Or, perhaps you just pdf these reports daily and email them to the owner’s gmail account. But are you comfortable with emailing this information?

I’m sure there are lots of different approaches one could take to protect your data. I hope this has helped you to understand that we’re all at risk so please think about the precautions you want to take and start putting them in place.