Books and records you need to start a business

by in Calgary Tax Saving for Business
For tax purposes, all business owners are required to keep books of accounts and records.  These books and records are necessary to calculate the business’ taxes payable and should be supported by invoices for purchases and sales, deposit slips, cheques or contracts.  These books and records are also used to prepare financial statements of the business. 

Many of the books, records and source documents have to be retained for a minimum of six years after the end of the last tax year to which they relate to.  For capital purchase records, these should be retained until six years after the end of the tax year in which the capital property was sold.

Some books and records must be kept until six years after the tax year in which the business ceased.  These include:

  1. the general ledger or other book of final entry containing summaries of the year-to-year transactions of the business

  2. any special contracts or agreements necessary to an understanding of the entries in the general ledger or other book of final entry. 


Some records must be retained until two years after the day the corporation is dissolved.  These include:

  1. minutes of the meetings of directors of the corporation

  2. minutes of meetings of the shareholders of the corporation

  3. any record of the corporation containing details with respect to the ownership of the shares of the capital stock of the corporation and any transfers thereof

  4. the general ledger or other book of final entry containing the summaries of the year-to-year transactions of the corporation

  5. any special contracts of agreements necessary to an understanding of the entries in the general ledger or other book of final entry


With the permission of the Minister, the books and records of a business can be destroyed earlier.  The CRA provides the Request for Destruction of Books and Records form for this purpose.

For a more detailed discussion, please visit the CRA website or taxtips.ca.
Rate this blog entry:
0
KD PROFESSIONAL is a group of interconnected companies offering a wide range of financial, accounting and tax services to individuals and businesses across Canada. Through our experienced staff and strategic alliances, we provide exemplary service and solutions to maximize your cash flow, while preserving Wealth.

Comments

  • No comments made yet. Be the first to submit a comment

Leave your comment

Guest
Guest Friday, 20 October 2017
Subscribe

If you have a question about one of our products or services, please do not hesitate to contact us!
Please Enter Your Name
Please Enter A Valid Email
Please Enter Your Phone Number
Please select your preferred method of contact.
Refresh Please letters shown!

KD Professional Services
Monday-Friday 9am- 5pm
102, 221 18th Street SE
Calgary, AB, T2E 6J5

403-219-0602
403-219-0603

Read our Tweets