Here are some simple guidelines that our clients find useful:
- Keep all original receipts. Don’t keep just the debit or the credit card slip because this is not sufficient proof for the government. You must have THE ORIGINAL RECEIPT.
- Calculate your home use expenses on a different spreadsheet because for your income tax you need the total paid for the year, not just the business portion.
- Use a different bank or credit card account for your business. Even though you are a self-employed and your income tax is on the same form, you should use a different account for your business. It shows the government that you are mindful of keeping personal and business expenses separate.
- Keep your receipts month by month. Create a file for each month, so when you get home at the end of the day you can simply put all your receipts in that file. This makes recording and locating information much easier in the long run.
- Keep a mileage log. If you use your personal vehicle for business, you must keep a log. It is very important that you record the mileage that you do for the business otherwise the government may not accept your vehicle expenses. Record the date, the mileage and the client.
- A proper invoice must include:
- Invoice number
- GST and/or PST number if applicable
- A date
- Name and address of both vendor and customer.
1 comments:
There is an exciting new business tool provided by www.MileageLogger.com that will not only help you accurately keep track of the business mileage but best of all is automatic. All the records are sent automatically from you vehicle to a secure online account where you can edit, label and export the mileage records for your CPA.You might want to check it out.
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