By Lisa Patrick on
2/2/2012 12:00 AM
Why proper record keeping is so valuable to your business!
Record keeping is considered by many entrepreneurs as one of the "least important" part of operating a business (unless you are an accountant). However, good record keeping is essential to your financial survival. It also provides you the information paper trail tool to navigate through your records to uncover where the possibility of fraud is occurring or has occurred.
If you have a business in Canada, The Income Tax Act requires you to keep records so that you can prepare complete and accurate tax returns. Keeping careful records of all your financial transactions is also in your own best interest for the following reasons:
· Good records help you to identify from whom you received your income. You may receive cash or property from many different places. Unless you have records showing sources of your income, you may be UNABLE to prove that some are non-business or non-taxable.
· Well kept records...