Archive for Taxes

How do I avoid getting Audited by CRA!?

This is a question that keeps coming up and the answer we give is never the one that everyone is looking for. Although we cannot promise you will not be audited by CRA there are ways to minimize the stress an audit can cause.

It is very important to have clean books and records with supporting documentation for your expenses. All expenses should have supporting invoices and/or receipts to be able to justify them as legitimate deductions. One of the most scrutinized category of expenses are entertainment expenses. Ensure that on the receipts you record who you are entertaining and the business purpose. You don’t need to write a book – just a couple of words that can remind you several years down the road.  Although it sounds tedious, you usually have to sign the bottom of the receipt after charging the meal to your credit card, so just quickly write the details on the receipt immediately after.

With proper records and supporting documentation, an auditor will quickly see that the books are in good order and that they wont be able to find much if they continue looking! Take the fear and stress out of an audit by preparing for the eventuality!

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Failing to Tax Plan = Planning to Fail

Maximizing after tax income is one of the more important functions a professional accountant can provide. It certainly doesn’t help if they are forced to put a blindfold on!

The relationship between a professional accountant and a client should be one where it is not limited to one or two visits a year for the annual filing. It should be a dynamic relationship where both the client and professional are looking forward together. Discussing, planning and executing strategies that encompass the possible situations that could arise in the short and long-runs.

There is little one can do to change the past and you cannot predict the future, but you can plan for it.

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