Inadequate financial record-keeping wastes time and money and causes a whole lot of stress. So here are 5 Steps to avoid that:
1. Use a Separate Bank Account and Credit Card Account for the Business. This eliminates a lot of confusion, and many banks and credit card companies offer benefits to Business Owners.
2. Be sure to register with the Taxing Authorities, so you have the proper Tax ID numbers. Keep a file with the numbers, as well as any payments made during the year.
3. Maintain Records of all Major Purchases. You will need the total purchase price. If these purchases are paid by installments – you will need the breakdown of principal and interest paid through the year
4. Maintain a Log of Business Mileage. A simple log would consist of: The Date, the Mileage traveled, and the Business purpose. You can include more details if it helps for your business – but making it too complicated creates a reason NOT to do it.
5. The last and often the part that causes the most confusion:You need to be able to produce The Total Business Income for the year and total of all Business Expenditures.
Setting up a Bookkeeping System and keeping your records current will be a Lifesaver when you get to Tax Season. Lalia Cpa offers the best business Accounting in Mississauga, Ontario. We assist companies across Canada in all areas and at every level of business growth. We offer small to medium businesses of all types the chance to cherry-pick from a flexible range of services, including Accountant and Bookkeeping, GST, Payroll, Personal and Corporate Taxation, general office services, and many more.
Lalia Cpa offers more than 40 years of experience and pure expertise in streamlining systems and making substantial savings for all types of businesses. For a free consultation, call Lalia Cpa at 647-532-1413.