Bookkeeping is an essential part of a business. To maintain records, every company has a professional accountant. The records and books you maintain are helpful in running a profitable business. It is also a vital tool to understand how you spend your company funds.
In Canada, to calculate the taxes properly, the CRA advises everyone to keep a well-maintained book of accounts and records. As a professional provider of income tax services in Toronto, we understand the need for it. So, we are here to list a few things that you need to file taxes like a pro.
For Proprietorship
If you are self-employed, then you must have all the books and records mentioned below to file tax accurately:
1. Accounts ledger containing year-to-year transaction entries.
2. Special documents if necessary to understand the entries of the accounts book.
It is vital that you keep the ledger until at least six years after the tax year.
For Corporations
We recommend opting for professional income tax services in Toronto when filing taxes for corporations. The following are the things you need:
1. Records concerning ownership, shares, and transfers.
2. General accounts ledger containing year-to-year transactions.
3. Special documents that help understand the entries made in the ledger.
For corporations, you need to keep these records and books safe up to two years after the corporation gets dissolved.
Finally…
Even as an individual, you should maintain a clean record of all your transactions. It helps you during the tax filing season and makes the whole process faster. Furthermore, it can also help you be safe from legal claims during a CRA audit. A professional tax accountant would know that and this is why it is always the right choice to hire a dedicated team for your business accounting.
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