COMPANY X

SEIZING AN OPPORTUNITY

John had originally set up a holding company called Company X for his stock portfolio as well as a bunch of rental properties he owned in the Niagara region. He saw an opportunity within the past 5 years to take advantage of the Canadian housing market’s rapid appreciation.

He is now sitting on a ton of gains in his real estate portfolio but that is not why John wanted to sit down and meet. His accounting system that he uses to keep track of his gains and losses as well as his rental property business just wasn’t cutting it. He knew he needed to update his accounting support systems to give him better real time data so he could make meaningful decisions about his business. He also knew that proper guidance and direction was essential if he wanted to raise other funds as well.

John came into the office and we asked him all sorts of questions:  What current accounting system are you using? What did you want to do with your money? Is it eventually for retirement? Will you leave any behind to your children? Do you plan to use some for an income every year? How much money is your company currently making? Are you paying any out in a salary currently? We needed to know what everything about what’s done up to this point in time in order to provide the best advice we could and help the transition if he needed to update his accounting systems.

After the meeting, we proposed transitioning to an up to date accounting system that will help keep track of all the business’ expenses and income. This will allow him to see monthly how his rental properties and investments are performing. John gave us the green light and we got to work immediately.