Insider Secret #1: Get Organized!
Do you consider yourself an organized business owner? Do you know how to organize your month-end paperwork and data for accurate reporting? Keeping accurate financial records is one of the ways you can find an edge in business. It is easy to hand over cash receipts and paperwork to your bookkeeper at the end of the month or quarter, but knowing what’s important and essential in keeping your books up to date will help you understand how to maintain a healthy business and leverage your edge!
Here are 7 “Keep-ers”:
- Keep cash receipts. Separate personal expenses from business expenses. Sure, you can throw your receipts in a shoebox or file them away, but only you know what is a personal and what is business related.
- Keep receipts/ invoices for large business expenses, such as computers, office equipment, or office furniture. These will be amortized by your bookkeeper.
- Keep deposit slips and receipts.
- Keep monthly bank/credit card statements. Avoid using business bank accounts for personal purchases. Keep personal items separate.
- Keep Canada Revenue Agency (CRA) tax forms (HST, Source Deductions, and Corporate Tax).
- Keep a separate bank account for HST liabilities and make monthly installment payments to alleviate any anxiety around HST due dates.
- Keep a calendar/reminder list for important dates such as, monthly source deductions, HST filings, or fiscal year end.
Organizing and managing your financial records will help save time, energy and sleepless nights, if at any time your business is audited by CRA. Keeping track of your all receipts, invoices, and statements will allow your bookkeeper to accurately track and compare past and present financial positions, which in turn will help you look ahead and not behind in your business.
Contact us today for more information on how we can help you stay organized and help you run your business efficiently.
Next Month: Insider Secret #2: Selecting and Reviewing Financial Reports