Tax Lady Online - Bookkeeping Tips

Things you can do to save yourself time and money....

RECEIPTS / EXPENSES:

Keep your original receipts. In an assessment or audit situation, CRA will only allow expenses if original receipt was obtained.

If you have a receipt printed on "thermal paper" it is likely to fade quickly. It is a good idea to photocopy these and attach the original to the photocopy.

Indicate on receipt what it is for (auto? gas?). If it involves meals, indicate who it was for (example: Bob from Anyday Crafts, Jim of Jim's Hardware, etc.)

Keep your receipts organized in date order.

BANK RECONCILIATIONS:
Have your bank statements with returned cheques available.
Have your cheque book with cheque stubs (or duplicate cheques) handy.

SALES INVOICES:
Keep the 'paid invoices' separate from the 'unpaid' or 'outstanding' invoices.
On Paid Invoices indicate - date deposited, cheque number, amount paid if not paid in full.

BILLS / INVOICES YOU NEED TO PAY:
Indicate on the invoice the amount if not in full or the reason why not paid in full. Don't forget to also indicate date paid and cheque number.

CREDIT CARD BILLS:
Treat the same as expenses indicating which are personal (if applicable) or which business account it should be allocated.

BACK UP YOUR DATA:
It is very important to back up your computerized bookkeeping figures. A safe way to do this would be to use alternate either SD cards, thumb drives, CDs or back up hard drives. Should your computer crash or information get contaminated, you would only loose one day of input.

FOR BEGINNERS.....

** When you are making deposits by bank machine, try to separate cheques rather than one large deposit representing 2-3 client payments. This will make it easier to match your bank statement to your accounts receivable invoices.

**If you are a very small business, a simple way to begin your filing system is to acquire an accordian-type filing folder. Some are of cardboard and others are a little fancier made of coloured plastic, etc. Make sure you have at least 12 pockets so you can label one pocket for each month. All bills, statements, etc., are placed in the appropriate month. This may not sound like a very sophisticated filing system, but for those who hate to file, this may be the answer.

DID YOU KNOW...

The better organized your books are, the more successful you will be in the case of an audit?

CRA is paying more attention to smaller business expenses.

We have experience in successfully assisting clients with CRA audits. As such, we know how CRA prefers the records to be organized, ensuring a faster, more favorable outcome for you.