Bookkeeping Tips

Bookkeeping is one of the main challenges that businesses face. You may not enjoy struggling through the process of keeping your books, you may not be familiar with the proper procedures, or you simply don't have the time. Whether you have a bookkeeper or you're hiring a bookkeeper, here are some tips to save you time and money.

  • Weekly, set aside 20 minutes to file your receipts. Having your receipts in one location makes it harder to lose them. Keep an envelope or file pouch in your vehicle for receipts. Place your receipts in the holder as soon as you get them, so they won't be misplaced.
  • Any time you spend money, you should ask yourself: "Does this receipt relate to my business?" If it does, then make sure to keep it and make sure you write on them what they are for.
  • If you use your personal vehicle for business it is vital to log the number of kilometres you used for business daily. You must be able to prove to the CRA what portion of your vehicle was used for business or they will disallow your deduction.
  • Be sure to know when your remittance deadlines are. This includes GST, PST, WSIB, Source Deductions, and Taxes. These forms must be submitted and must be on time, even if your remittance amount is zero.
  • Make a tax plan. You should be working towards your tax payment throughout the year. A good plan is to open a secondary bank account and transfer your tax payments to savings as you receive them.
  • Get a bank statement with a month-end cutoff. This is another basic tip that can reap big rewards. Synchronizing your bank statement with other monthly records will make it much easier to reconcile your statement and track expenses.
  • Use a computer. Computer bookkeeping software is absolutely essential for all but the smallest businesses. These applications make it easy to track income and expenses, prepare tax documents, summarize your company's financial activities and back up records for safekeeping.

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