Sole Proprietor Bookkeeping Tips
Hi, I’m Michael from Tax Services Toronto and I am going to speak about useful bookkeeping tips.
Remember there are only 3 ways to pay for business expenses which are:
1.Bank
2.Credit Card
3. OrCash
Bank statements
Normally these will be recorded in a bookkeeping program either by the owner or a third party accountant such as ourselves. The cheque will indicate the name of the supplier which may not give an indication as what the payment is for.If that is the case, it is always good to indicate what it is for in the memo section of the cheque.
Credit Card
We highly recommend that a business credit card is used which is exclusively for the business expenses. All personal expenses should be put through a personal credit card.
It is highly recommended that you look through the credit card statements to classify each expense into the appropriate category if not readily apparent. Some examples of expense categories include vehicle, meals & entertainment, office supplies, and many more. All personal expenses should be indicated as such.
The major advantage of organizing your documents is that you will save your accountant a lot of time and will also save money.
Cash Expenses
Sometimes clients will have 100’s of small cash receipts which can be cumbersome to organise. We recommend that that these receipts be sorted into various categories like gas, meals, office and then stapled together and added on an adding machine with the adding machine receipt attached to the bundle of receipts.
Organising documents and receipts can be done quickly and easily if you have asystem.
You can count on Tax Services Torontoto take care of your bookkeeping needs and get you organised and reduce your level of stress. This will also ensure that government remittances are always filed on time to avoid unnecessary penalties and interest.
We can be contacted at www.taxservicestoronto.com or Tel 416 626 2727
We look forward to hearing from you.
