Record Keeping for Businesses
Here are some basic things you need to know when keeping your business records:
- Make sure you keep duplicate deposit slips, bank statements and cancelled cheques.
- Keep separate records for each of your business if you own and operate multiple businesses.
- If you keep computerized records, make sure they are clear and easy to read.
- Do not send out original copies of your records to the CRA with your income tax return. Keep them in case the CRA asks for them.
There are 4 types of business records you must keep – income records, expense records, asset records and liability records. These are pretty much self-explanatory as each name suggests. Basically, these records are supporting documents related to income, expenses, assets and liabilities of the business.
In our next blogs, we’ll take a look at these types of business records so please check back soon!