Tips and Tricks for Financial and Tax Planning
BEFORE ALL DEDUCTIONS, SAVING AT LEAST 10% OF YOUR INCOME… First and foremost, pay yourself! The Wealthy Barber, authored by David Chilton, is a fantastic book to read. David is a terrific man and an entrepreneur through and through, as you may have seen him on a section of Dragon’s Den. PAY YOURSELF 10% OF YOUR GROSS INCOME, whether it’s a paycheck or a check from a contractor as an Owner Operator, 10% OF YOUR GROSS INCOME.
Are you looking to hire a Business Financial Consultant? There are some decent ones and some highly nasty ones out there. How do you know? It’ll be challenging, but let’s give it our best shot. To begin with, anyone who can assist you in transitioning from a spender to a saver is worth considering.
Second, make them take their financial trousers down and show you what they’ve put their money into! If they refuse or give you an excuse that it is against corporate policy, pack your belongings and departed as a Financial Planner. Engage the services of a financial planner.
Yes. It would be beneficial to have someone you trust who is both a successful entrepreneur and a millionaire. They could also be a non-financial planner, such as fellow truckers or farmers. Both are persons who are salt of the soil. Select a fantastic mentor for business accounting and bookkeeping services.
KEEP ACCURATE records in a system that works for you, whether you’re online or offline. Keep your invoices and receipts in a briefcase or accordion file while on the road if you’re offline, and move all paperwork from the road to your home filing system. You can keep a functional system, such as one that uses the alphabet to store papers by the last name, or you can use a file system that is set up to provide detail for each Account, such as Fuel or Repairs, that matches the total in each general ledger account. You can also file per month in the current tax year, putting all revenue and cost documents in each month’s filing.
Remember that the system must function properly for your accountant to complete and verify your annual and interim tax returns to both CRA and HST. The bookkeeping system you employ must be usable by both you and your accountant; otherwise, it will become costly to sort out the intricacies each year.
With a proper filing system and an ordered accounting procedure of capturing your information and details, AUDITS or requests for information from the CRA become considerably easier. We’ve just discovered a third potential user of our data and records, the Canada Revenue Agency. You won’t have to be concerned if you keep a well-organized bookkeeping and accounting system. To stay in compliance with CRA rules and regulations, you must keep good records in the case of an audit.
