October 1, 2020

EDITION 1 OF 2

TIPS AND TRICKS FOR

HEALTHY BUSINESS MANAGEMENT

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The gradual resumption of economic activities prompts you to question the tasks that need to be done daily but are always postponed? To facilitate the effective continuation of your business activities, we suggest a list of tasks to be completed before the end of this lull.


Employer-employee relations

Regarding employer-employee relations, you would benefit from taking this opportunity to update all your policies, including those required by law and those aimed at facilitating business management. In particular, since January 1, 2019, Quebec businesses must implement an anti-harassment policy at work.

Also, it seems essential for every company to have a policy regarding the use of social media and other technological means. This usage can be essential in certain business areas but detrimental to employee productivity or the reputation of your company in other jobs. Depending on your needs, it would often be useful to include in your internal policies:

  • The prohibition of publishing any content related to the employer or its partners without their prior approval;
  • The authorized use of social networks, mobile phones, or tablets in the workplace;
  • The non-exhaustive listing of possible sanctions in case of violation of company policies.

Now is also an opportune time to review all employment contracts of your employees and their performance in terms of:

  • The description of their tasks may have changed;
  • A performance evaluation will measure their productivity and identify tools to improve their efficiency.


Administrative and organizational management.

Effective administrative and organizational management requires periodic review of practices, contracts, and procedures. That’s why we suggest, during the gradual resumption of your business activities, focusing on the following tasks: Regarding insurance policies:

• Check overdue accounts. Indeed, the law provides a three-year limitation period for rights related to the recovery of a debt, after which the statute of limitations can be raised against the company if it still initiates legal action. Consequently, it is necessary to file a statement of claim with the court within this period, as referring the matter to a collection agency does not suspend the limitation period! Most legal fees incurred are deductible, so rest assured.

Moreover, if you intend to claim a deduction for a bad debt in the calculation of the company’s income (whether an individual or a corporation), note that there are specific criteria governing eligibility for this deduction. Failure to meet these criteria could result in the deduction being denied. Generally, you must be able to demonstrate reasonable efforts to collect the amounts owed to the company, including through actual collection attempts (sending a demand letter, engaging a collection agency, etc.) that have been unsuccessful.

• Review your tax planning. If your operations are suspended or slowed down and you have dormant income in bank accounts, it may be time to consider the best use for it. Is it relevant to maintain a high balance? Is it advantageous to use it for investments? Is it the right time to purchase assets (equipment, vehicles, etc.)?

Some entrepreneurs may be tempted to invest these amounts in a sector unrelated to the business, such as real estate. However, this type of investment also has tax consequences that you will need to take into account.

Finally, if retirement is on the horizon, this could be the perfect time to proceed with a reorganization to integrate the next generation while protecting the value accumulated in the business through your hard work.