Blog posts tagged in business records
There are 3 basic types of business records: Income records, Expense records and Property records. Income records: Income records keep track of the gross income your business earns. Gross income is your total income before you deduct any expenses including those associated with goods sold. Your income records must show the following information with regards to your income: - Amount and date received - Source of the income It is also important that you record the income whether it was received as cash, property or services. Original documents must support all income entries. These documents include sales invoices, cash register tapes,...
As a business owner, you are required by law to keep records of all your transactions to support your income and expenses. Your business records must be reliable and complete, include the information needed to meet your tax obligations and calculate your credits, be supported by documents, be kept in English, French or a combination of these two languages. According to the law, you are responsible, as a business owner for: - Protecting your records; - Making your records and supporting documents available to the CRA when requested; - Making sure that you, your employees or your third party record keeper...
What are records?
Records are accounting and other financial documents that are kept in an organized way.
If you are carrying on a business or engaged in a commercial activity in Canada, you are required to maintain adequate records. These records must provide sufficient details to determine your tax obligations and entitlements. They have to be supported by source documents to verify the information in the records.
What are the legal requirements for keeping records?
All records such as paper documents, as well as those stored in an electronic medium (such as on computer disk), must be kept in Canada...
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...