TDMP Cash Management
TDMP's Cash Management Group will help you complete your initial setup, optimize your cash flows, buffer the Tax Clearing Account and manage the ongoing monthly maintenance of your TDMP Plan.
Responsibilities:
Initial TDMP Setup
Optimize Cash Flows
Buffer Clearing Accounts
Monthly Account Maintenance
Click here to view a complete list of TDMP's Cash Management Services.
Why is Cash Management Important?
The timing of cash flow movements on a monthly cycle is critically important, especially if the bank accounts are not appropriately “buffered” with enough cash to handle a missed payment. Under TDMP, the monthly cash flow cycle is managed on behalf of the client with their appropriate written pre-authorization - and the mortgage lender will process the regular mortgage payments and monthly prepayments/re-advances on a pre-determined schedule.
Homeowners who execute this financial strategy themselves (i.e. not using TDMP or a similar professional accounting service) typically find that setting up and processing the monthly cash flows is a tedious and onerous monthly task.
Therefore, the most significant advantage of using a professional service like TDMP, is that their principal business lies in processing thousands of payments every month on behalf of homeowners for the purpose of Cash Damming – and the combination of technology and volume processing allows for highly efficient and effective cash flow management -usually at a reasonable monthly fee (e.g. some Accountants charge approximately $100 per month). TDMP offers full service at $39.95 per month.
How does TDMP Create an Audit Trail?
Every TDMP customer is required to open a new chequing account ("TDMP Clearing Account") which is used exclusively for Cash Damming. Under TDMP, the cash flow process is fully managed through automation -requiring no input from the homeowner, but it is important to know that the monthly cash flows will be structured such that non-tax deductible cash flows (e.g. mortgage payments and extra pre-payments) are made from the homeowners regular bank account and tax deductible cash flows (e.g. line of credit re-advances, carrying charges and investments) are processed through the TDMP Clearing Account, which only handles tax deductible cash flows.
This provides a bullet proof audit trail for CRA and guarantees the homeowner perpetual entitlement to their mortgage tax refunds -as long as the investments qualify under ITA rules and funds are never co-mingled by the homeowner.
