Updating your financials with Blue Book Business is very easy.  Contact us today.

Focus on your strengths when operating your business, and allow Blue Book Business to take care of your paperwork. 

Getting all your paperwork in to your accountant, and bookkeeper is important.  They need to file the information on time to lower your fines and fees when submitting GST, Tax returns, payroll remittances, and employment records, T5018s.  Blue Book Business has a great system for business owners to get them to submit their paperwork in a timely fashion.  Contact us today.

Looking to get up to date with your small business financials?  Contact us today.

       Avoid a Tax Audit from the CRA.

1. Be aware that there are different types of audits –  An audit is a review of your business'books and records by the CRA to ensure that your tax return accurately reflects the taxes owed by the business and to ensure the business is meeting all of its filing and payment obligations. 
2.  Understand how the CRA decides who to audit – “The CRA typically uses four ways to select businesses to audit.  It can use a computer-generated list to select financial information of businesses within the same industry or occupation, which is then used to decide who to audit. The CRA also carries out projects targeting particular groups or businesses from time to time, usually when there are indications of significant tax filing non-compliance within the group. The third way is responding to information from other audits, investigations, outside sources or tips. Last, but not least, they select many files because of their association with other files. For example, if your business partner is being audited, your file will likely be triggered for an audit as well.   Audits can also be random or triggered by an unusual tax filing or comparison of information to third-party sources such as tax information slips.
3. Avoid audit triggers –  Audit triggers include consecutive years of losses reported, especially if the business is owned personally and/or has an element of personal enjoyment to it.  High expense claims relative to business revenue and compared to other businesses in your industry can also be a red flag. Unreported or under-reported income is a major audit trigger, as are large charitable donations and transactions with non-arm’s length parties.   The CRA may also audit you if your lifestyle does not match your reported income level, if you claim excessive home office deductions or if you contribute to tax shelters that are being investigated.
4. Keep good records –  Claiming personal expenses as a business deduction is probably the area most attacked by the CRA.  Keep business and personal expenses separate and have separate bank accounts for your business and personal finances. Keep documentation and receipts for expenses you want to claim, and, if there is a personal element, document the business connection on the receipt
5. File and pay your taxes on time – “Late filing or payment may well attract phone calls or appointments with the CRA for audits.    Make sure your returns are accurate and complete
6. Consult a Chartered Accountant –  Your Accountant will help make sure your returns are prepared correctly, with completed records and proper documentation.    If a CRA audit ever arises, your Accountant can perform a review of your returns to ensure transparency and will help you respond to the auditor’s questions.