Keeping Business Records: 4 types of business records
As mentioned in our previous blog, there are 4 types of business records you must keep.
Income records: Income records must support all of the income that your business earns. Your income records must include the date, amount and source of income. It should also show if the income was received as cash, property or services. Your business income must be supported by original documents such as sales invoices, cash register tapes, receipts, bank deposit slips, fee statements and contracts.
Expense records: When you buy something for your business, you must always get receipts or other vouchers. The receipts must show the date of purchase, the name and address of the seller, the name and address of the buyer, full description of the goods or services and the vendor’s business number if they are a GST/HST registrant.
Assets: Records that need to be kept for assets include purchase invoices and documents relating to the purchase. When assets are sold good records must also be kept.
Liabilities: Statements that clearly show principle paid, interest paid and the balances of all liabilities must be kept.