Tips
- Do not throw away your cancelled cheques and bank statements
or any other financial information. For CRA purposes books, records and
their related accounts and source documents must be held for 7 years. Be
safe and keep for 8 years.
- Keep the cancelled cheques with the bank statements they
come with.
- Perform a bank reconciliation each month. If you or your bookkeeper doesn't
know how, contact us to find out.
- File your copy of your sales invoice numerically. Make a second copy of the
sales invoice and file by customer.
- Keep a file of all invoices and bills that are paid, with a copy, or
cheque number attached.
- It is easier to keep track of expenditures if you pay by
cheque.
- It is advisable to make detailed deposit slips that list
each payer and keep a copy for yourself. If cheque stubs indicate which
invoices are paid it is advisable to keep the stub with the deposit slip.
- Set up an accounting system to get monthly income statements
and a balance sheet. Study them for errors. Comparative reports will help
you detect errors and trends.
- Review accounts receivable monthly and make collection
calls.
- Periodically through the year, and particularly at
year-end, count the inventory you have on hand and value it at latest
invoice cost (excluding GST).
- Discuss any concerns or questions about your financial
statements with your accountant.
- Sales are the starting point for business success.
- If you are starting a new business or have an existing
business that is not as profitable as you had hoped, don't be afraid
to ask for help.
- Obtain a business number including GST, corporate tax
and payroll, if applicable. Discuss this with your accountant.
- Generally, payroll deductions at source are due the 15th
of the month following payroll.
- Generally, corporate taxes are due 3 months after your
year-end. The tax returns are due 6 months after your year-end.
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