YOUR BEST SMALL BUSINESS TIPS

1.- Remember that your accountant's time is your MONEY.

2.- Do not throw away your cancelled cheques (cheques returned to your bank account)

3.- File your copy of your sales invoice either numerically or by customer. Your invoices must follow a sequence order and any missing invoice number must be explained (keep a copy of void invoices/cancelled/no charge etc..)

4.- Keep all invoices issued and bills paid. Bills paid shall be filed by "how it was paid"

5.-Perform a bank reconciliation each month.

6.-Periodically throught the year, and particularly at YEAR END, count the inventory (if any) you have on hand.  This procedure will validate the Cost of Sales calculation.

7.-Review your Accounts Receivable at year end and analyze those aged +90 days overdue to assess your Bad debt provision.

8.-Register for HST if in any 12 consecutive months your Gross sales are $30,000. It may be beneficial to register at the start of your business operation.

9.-Discuss your Financial Statements with your accountant.

10.-Your business expenditures must be separate from your personal expenses. Personal expenses are after tax money.

11.-Try to avoid using cash to pay for business expenses, rather use cheques or debit.

12.-Keep a Copy of your Deposit details.

13.-Consult your accountant regarding :

-Employee vs self-employed definition

-Requirement to register for WSIB

-Rules regarding directors/shareholders as employees of the corporation

-Employment standards


14.-The best way to AVOID audits is by filing ON TIME and by REPORTING credible information.