Bookkeeping is essential for maintaining accurate financial records for your business. Here’s a general guideline on the information you should provide and keep:
Business Transactions:
Record all financial transactions related to your business. This includes sales, purchases, expenses, and any other financial activities.
Sales Records:
Keep detailed records of all sales transactions. This includes invoices issued to customers, sales receipts, and records of payments received.
Purchase Records:
Maintain records of all purchases made for your business. This includes invoices from suppliers, receipts for purchases, and records of payments made.
Expense Records:
Keep track of all business expenses. This includes receipts for expenses such as rent, utilities, office supplies, travel, meals, and entertainment.
Bank Statements:
Keep copies of your business bank statements. These statements provide a record of all deposits, withdrawals, and other transactions related to your business bank accounts.
Payroll Records:
If you have employees, maintain payroll records, including records of wages, salaries, bonuses, deductions, and payroll taxes.
Tax Records:
Keep copies of all tax-related documents, including tax returns, notices of assessment, and correspondence with tax authorities.
Asset and Inventory Records:
Maintain records of your business assets, including purchases, depreciation, and disposals. Keep track of inventory levels and values if your business sells products.
Financial Statements:
Prepare and keep financial statements, including balance sheets, income statements, and cash flow statements. These statements provide an overview of your business’s financial performance.
Documentation of Business Structure and Registrations:
Keep copies of documents related to your business structure, such as articles of incorporation, partnership agreements, and business registrations.
Insurance Records:
Maintain records of your business insurance policies, including coverage details and premium payments.
Contracts and Agreements:
Keep copies of contracts and agreements related to your business, such as lease agreements, vendor contracts, and customer agreements.
It’s important to organize and store these records securely, either in physical or digital format. Proper record-keeping not only helps you track your business’s financial health but also ensures compliance with tax and regulatory requirements in Canada. Consider consulting with a professional accountant or bookkeeper to help set up and maintain your business’s bookkeeping system.
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