Accounting tips for small business Canada by Accountant Oakville and Mississauga

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Accounting tips for small business Canada by
Accountant Oakville and Mississauga
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Always keep your business finances separate from
your personal finances.
Don't give the tax auditor a reason to audit
both. Learn to pay yourself first and run your
business on the remaining cash.
This means setup an automatic payment to your
personal account twice a month (1st 15th or
10th 25th) like a regular pay cheque.
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File all your tax compliance reports on time
File all your tax compliance reports on time to
avoid penalties, even if you can't pay the amount
owing. 
However if you begin the habit of putting money
aside in a separate account to pay your taxes,
you will never have this problem. Start today.
Put 15 of all cash received by your business
into a separate account.
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Keep Organized
Develop a method for handling all your paperwork .
Entering your bookkeeping data in batches .
Actively managing your cash flow .
Review your bank statement and financial reports
monthly.
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Audit proof your records.
Keep all your receipts, no matter how small the
amount and make sure they are legible. Receipts
you must keep include debit receipts and credit
card receipts.
Deposit all your business cash flowing into the
business ... so you can prove what was income
(taxable) and what was contributions or loan
proceeds (not taxable).
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 Whenever possible, don't go into debt to run
your business.
Run your business on your existing cash flow. Not
enough cash flow to cover expenses? Figure out
where to cut your expenses and consider not
offering credit to your customers because you are
not a bank.
Keep a business journal to diarize your logic for
your business ventures. It will help show you
incurred the expenses with the expectation of
profit.
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