Holy shiz guys how is it already December?! Legit when did that happen? It’s confusing because we’re still wearing our leather jackets outside instead of our parkas. Better not complain and jinx it though!
Anyway, you know what happens in December?
Besides Christmas and Hanukkah and Kwanza and shopping and stuff.
What happens is PREPARATION AND ORGANIZATION.
With the end of the Gregorian calendar year also comes the end of the fiscal year for many small businesses, freelancers and sole proprietors.
That means it’s time to crawl under your bed, grab the shoebox, open it and organize receipts!
It doesn’t have to be complicated, but it does have to be clear enough to satisfy the tax-man.
Here are a few basic ways to help you organize receipts:
1. Double-check you’re not missing receipts.
Have you checked your car? Your email? Check out the CRA’s list of business expenses to ensure you’re not forgetting something you can write off.
2. Create a spreadsheet
It doesn’t have to be anything fancy, but it should include at least 4 columns: the item, a description of why it was needed for your business if it’s not obvious, the price and the HST.
3. Go digital
Scan or take a photo of your receipts, otherwise they may fade or you may spill coffee on them. Stop being so clumsy! Not technically necessary for the CRA, but it’s best practice to have a back-up. It may also make it easier to find your receipt should you need it in the future (thank you command+f)! Likewise, print out a copy of emailed receipts.
4. File your paper receipts
Even if you’ve gone digital, you don’t want to throw out the originals. A simple dollar store accordion folder will do. And then don’t forget to write off the accordion folder under office supplies!
5. Resolve to do better next year!
Don’t worry, life is a journey. To avoid last-minute panic next year, take our online course TRACK THAT SHIZ and make tax time a total breeze!
When you take this course you will:
•Understand CRA record keeping
•Get your biz finances organized – separating business from personal life
•Know how to track your rev and expenses so tax time is a breeze
•Understand how to prepare for quarterly instalments
•Avoid CRA late penalties and interest!
•Sleep at night