Easy Ways to Prepare Tax Records for Your Accountant
If your method of sending files at tax time involves a bankers box and prayer, please read this article on how to prepare tax records for your accountant.
Hiring an accountant to prepare your taxes can save you time, money, and a major headache, so you can focus your time on what you really want: your business! The question is, what do you need to do in order to get your files ready to send over to your accountant to start the process?
But isn’t it your accountant’s job to do all of that paperwork stuff? In some ways, yes. But having files properly organized and maintained means your accountant has more time to focus on your business and less time chasing after individual bits of paper.
Her are some common business records your accountant will need in order to do the job right:
- Profit-Loss Statements, Income Statements, Balance Sheets, and Cash Flow Statements
- Payroll Information
- Business Expenses: Travel Expenses, Advertising Expenses, Rent, Utilities, Office Supplies, Maintenance, and Shipping Costs
- Motor Vehicle Expenses
- Asset Additions or Reductions
- Last Year’s Notice of Assesment or Tax Return
- T4 Slips
- T4A Commission and Self Employed
- RRSP Contribution Slips
- Charitable Donations
- Medical and Dental Receipts
- Child Care Information
It’s important to have this information as organized as possible. Try to have all your paperwork marked clearly so your tax accountant can differentiate between all the material. As tempting it may be, don’t mix business receipts with your medical receipts, or asset additions with motor vehicle expenses. Mixing up paperwork will extend the amount of time your tax return will take to be processed and completed. Here are some tips you can use to organize your tax records:
- Sort all your information by type
- Organize your receipts, invoices, and expense receipts daily to avoid any last minute headaches
- If you have several businesses, separate revenue and expense statements for each individual business
- Label all of your files and documents before you hand them in
- Talk to your accountant beforehand to double check that you have the all the required paperwork
Remember, your tax accountant is here to help you streamline this rigorous process and make your life easier. If you have any questions about deductions, expenses, or how to maximize your tax credits, ask! If you have any questions or would like to more information, contact us.
- Corporate Gifts - November 26, 2022
- Boost your business digital strategy with the Canada Digital Adoption Program - October 28, 2022
- Best Practices When Forming a Business Partnership in Ontario - April 26, 2022