As a small business, I understand that you are looking to keep your costs down. The easiest way to keep your accounting costs to a minimum is to be organized and not use your accountant as a bookkeeper. Here are some simple tips to get you started.
Get a good bookkeeper (or at a minimum take a bookkeeping course)
If you want to do the bookkeeping yourself, consider moving to the cloud. If you run a small business check out www.kashoo.com or www.waveaccounting.com. However, before you do this, check out my post regarding online accounting systems.
Both of these sites offer ‘free’ online bookkeeping options for small businesses.
If you are more comfortable working off of your desktop QuickBooks Pro is the way to go.
Keep all your documents, and keep them organized !
CRA requires a minimum of 7 years. For more information on CRA’s retention polices click here .
- Organize your information by type (ie: Bank statements, fuel expenses, CRA statements etc)
- Further refine by month or quarter if you have a lot of expenses)
- Mark on your invoices and bills how they were paid (ie: chq #, company visa, personal debit) and when.
- If not showing on bill or invoice indicate what was purchased.
- Keep a travel log of your business travel if you use the same vehicle for both personal and business.
- Mark on your business lunch receipts who you took for lunch and why.
- Make sure the receipt is in your business name.
Whatever you do, don’t put your receipts in a box or bag and drop them off to your accountant. Your fees will definitely go up and you might just be looking for a new accountant next year!
Want to go Paperless? Check out my post that discusses how to be organized in a paperless setting.