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Keeping Your Receipts Organized: Tips for Small Businesses

Tips for Small Businesses

Running a business perhaps couldn’t get any more mundane than keeping your receipts organized. However, as tedious and time-consuming as the task is, if you fail to stay on top of it, you’ll potentially be looking at years of financial stress. By keeping your receipts in order, you’ll be able to claim every expense so you aren’t compelled to pay more than your fair share in taxes.

In this piece, we’ll go over some crucial reasons why small businesses need to keep their receipts organized, and will also provide tips on how they can make the process easier.

 

Having Receipts on Hand for an Audit

 

To run a legitimate business in Canada, you need to comply with tax laws. The Canada Revenue Agency (CRA) requests businesses to provide proof of their expenses, so you will need to keep your receipts in order.

In case the CRA decides to audit your business, you will need to have all your receipts on hand and organized. If you fail to keep them organized, you will be scrambling to get mountains of paperwork in order and spending huge amounts in accounting fees to meet their requirements.

Tips for Small Businesses

 

Keeping Your Finances in Order

 

Unresolved receipts mean unresolved items. If you’re not regularly submitting all your receipts to your bookkeepers, you’ll have more unresolved items, which, of course, means inaccurate financial information.

You won’t have an accurate picture of your business’s cash flow, and the odds are that you’ll end up making the wrong decisions based on a lack of information.

 

Making Receipt Organization Easier

 

Now that you understand the importance of keeping your receipts organized, how exactly do you go about doing it? Here are some of the best business practices we recommend for getting all those slips of paper in order:

· You don’t need them to be slips of paper at all. Keep your receipts in a digital format.

· Digital receipts are fantastic because when it comes to providing evidence of expenses, they can be attached to transactions directly within software.

· To keep your receipts digitally, take photos of them as soon as you receive them.

· If you misplace or lose a receipt, let your bookkeeper know the amount (if you remember it) and the purpose of the transaction, before asking your vendor for a different copy.

 

As a premium Edmonton-based full-service accounting firm that offers professional small business tax accounting and bookkeeping services, we are committed to helping our clients achieve their business goals by streamlining their day-to-day finances.

Contact us to learn more about our full-cycle accounting services.

 

DPC-Chartered Professional Accountant.

 

Your Local Accountant in Edmonton.

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