We know mostly what papers we need to bring you to prepare our business books. But we want to be more careful; what papers do small businesses often forget to bring?
Papers you often forget to deliver to us
In doing your bookkeeping, we find the papers often missed are; deposit slips, bills — especially those in small amounts — and government correspondence – especially Notices of Assessment. This hurts you in different ways.
These days most deposits are made on the Automatic Telling Machines (ATMs). The receipts generated by ATMs are referred to as deposit slips. Some people are throwing these slips away. In the absence of deposit slips, we have to spend more time reconciling bank deposits with sales.
Missing bills may increase your HST, income taxes, audit costs and the additional taxes resulting from audits. Bills often missed are the ones in small amounts and/or those paid by hard cash. Try not to pay any bill over ten dollars by hard cash. You can always use a credit card instead. You should also provide us even the bills you are not sure will be deductible, and we will check that for you.
Also if you do not provide us all the correspondence received from government, we will have to spend more time reconciling your tax account ledger amounts with those on government statements. We need to reconcile tax accounts, among other ones, to prepare year end adjustments. We also use the correspondence to ensure that you have not overpaid. We have found many times, our customers have paid too much or into wrong accounts.
Some customers are providing us certain unnecessary papers. Experience shows that small amount bills for Meals and Entertainment are often not deductible. If you are a corporation and have an office at home, you need not provide the home expense bills. In any case we always give you back all your papers in packs separated as unnecessary and unnecessary ones. Keep the necessary papers around for at least 6 years.