September is almost here and kids are getting ready to go back to school and hit the books. Even if you don’t have children, the first of September always seems to signify a change: the end of Summer.
The first day of Fall is only a few weeks away and the lazy days of Summer are coming to an end.
It’s harvest season for many farmers. This can also be a time for small business owners to get more focused.
If you’re a landscaper or roofer or other outdoor tradesperson you may have gotten behind in your bookkeeping and your next tax instalment (September 15) may not be top of mind, so now may be the time for you also to think about hitting the books.
A good solution is to keep a pocket file folder in your work truck to file all your receipts. Different pockets can be used for different expenses.
You can then take the folder into your office once a week and enter the receipts into your bookkeeping software so you don’t get behind.
Or if you use an online bookkeeping solution there may be a mobile app you can use to enter receipts from your truck each day and even generate invoices after each job so you receive prompt payment.
If you use a bookkeeper you could have one folder for each month and drop the folder off with your bookkeeper at the end of each month.
Whether you’re putting gas in the truck, paying association dues or filing a receipt after getting a medical exam, having all your receipts organized will ensure you don’t miss any deductions when it comes time to prepare your small business taxes.
Don’t forget to also keep a mileage log to ensure you don’t miss out on deductions.
September is only a week away. You may not be heading back to school, but it may be a good time for you to refocus and hit the books (or at least your bookkeeping).
Just like you strived for an A while in school, your goal now is likely to strive for earning the most amount of money and paying the least amount of tax.
Keeping clean, organized books is going to help with that goal.
It’s going to ensure you have a clearer view of the financial health of your business, and, should CRA ever choose you for an audit, organized books with all your supporting receipts easily accessible is going to help defend your tax return and make the process go a lot smoother.