We came upon some tax time tips that we thought we’d share. Hopefully these help make your tax time a little less stressful!
- Keep your personal and business expenses separate.
- Make sure you have sufficient documentation for all your business expenses. Ask for a receipt no matter how small the purchase. Note what the receipt is for and where it was from if this information is not on the receipt. Cancelled cheques or credit card statements are not accepted as adequate documentation by Canada Revenue Agency for expenses where a receipt or invoice would usually be issued.
- Use a separate chequing bank account for your business. Note what the expense is for on the memo line of your cheque.
- Use a separate credit card for your business expenses.
- Keep a mileage log if you use your vehicle for business travel. Make note of the odometer reading at the start of each year and record, by date, the mileage each time you use your vehicle for business purposes.
- Keep your business records for each tax year together and in one place.
- For tax purposes, keep your business records for a minimum of seven years.