Ensuring that you keep on top of your finances and tax obligations is one of those much hated, but absolutely necessary tasks for which it is essential to have a system in place, even if you do have an accountant.
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Record Keeping and Organization
Ensuring that you maintain all your documents in an organized fashion is in some ways the most important task that a self-employed/small business owner should do. Have a system (paperless is fine) where you maintain all your invoices, bills, receipts, bank statements and government documents. Filing the documents so that they are easy to locate makes life much easier at tax time. Even if you are not one to organize your documents obsessively, at the very least throw them in a box that is clearly designated for your business. Organizing can then be done when necessary (which is ideally more than two days before your taxes are due)
Having a separate bank account and credit card for your business can be invaluable when trying to figure your financial picture, particularly if you do it once a year. It is also a great way to see your available funds and a quick way to calculate revenues and expenses in the absence of an accounting system. You don’t actually have to set up business accounts; just ensure that they are only used for business deposits and expenses.
Find trusted Accounting, booking and Income tax services in Brooklin www.m2financial.ca
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