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Consequences – Not provoding us all bills and receipts

For ideal accounting of business expenses, information should be taken from all bills and receipts (B&Rs) to support your income and expense amounts. However, if most payments are made by check or credit cards, we account for expenses using only bank or credit card statements. For accuracy, we make certain adjustments to amounts at the end of the fiscal year. A simple system like this costs much less and is still quite accurate. This does not mean that you need not save bills and receipts if we are using this system for your accounting. We will have to show B&Rs to your Canada Revenue Agency auditor if he/she decides to look at these before allowing you the corresponding deductions. Therefore, if we are doing your bookkeeping, you must include all of your B&Rs in the papers delivered to us. We would include these in the audit trails we set up for defense if an audit takes place.

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