1. Organization - It is a good idea, if you have not already been doing ,so to get your records together, organize by month, and, if you feel so inclined, get them entered into a computerized accounting program or at least an excel spreadsheet.
2. Save Money - Complete your bank reconciliations, get all of the invoices and returned cheques and staple them to the back of your bank statement. If you do not have an accounting program you can still complete this task. YOUR ACCOUNTANT WILL LOVE YOU!
3. Don't Throw Anything Out - Keep all receipts, your accountant will instruct you on the receipts that can work as an expense. One good practice is to write on your receipt what the purchase was for or who you took out for that meal.
4. Business Use of Personal Vehicle - As at January 1, 2009, a mileage log needs to be maintained a minimum of one month out of the year and may be requested by CRA in an audit. You are required to complete a milieage log for one month and then it will be averaged for the year. You must keep this information for SEVEN YEARS! You can also claim the business portion of the following: fuel; leasing or financing costs; repairs and maintenance; license and registration; and parking.
5. Home Office - Make sure that you gather the following information: rent; mortgage interest -- not the principal portion; property taxes; utilities; telephone; and home insurance. There are other less obvious expenses you should be claiming -- YOUR ACCOUNTANT WILL TELL YOU!
With all this knowledge you should be able to feel a bit more in control when you set up that meeting with your accountant.
TO YOUR SUCCESS!
THE ACCOUNTESS
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