If you’re running a business and need bookkeeping services in Halifax, there are one or two things you should know when you outsource.
Bookkeeping can be complicated and stressful if you try to do it yourself. If you make a mistake, it can quickly become expensive trying to correct it after incurring penalties, not to mention time intensive. Naturally, outsourcing your bookkeeping is a very attractive option as it can relieve a lot of pressure.
However, just because you’ve handed over this arduous task to someone capable like Kevin Martin Accounting, it doesn’t mean that you don’t have to keep some key responsibilities in mind.
You still need to stay tuned in to trends and developments in your industry. Moreover, you need to conduct regular bookkeeping reviews with your bookkeeper to better understand what is required and strategize more effectively for the future betterment of your business.
Remain Aware of Record-Keeping Requirements
Record keeping can be a pain, but it has to be done. Your bookkeeper can only work with the documents they’re provided. If records are missing, your books will be incomplete, which could lead to penalties – some of which could prove to be quite serious.
You should ensure that you’re well apprised of the unique record-keeping requirements specific to your industry.
In Canada, the rule of thumb is to keep all your financial records for six years past the tax year they relate to. This might vary depending on a few specifics, but it generally holds true.
Accurate record-keeping can help ensure that your tax obligations are accurately calculated, thereby ensuring you avoid penalties. If you’re ever audited, your impeccable records will save you a lot of stress and keep you out of trouble with the law. Moreover, your accurate records can be the key to you claiming tax returns and saving money.
Document Your Expenses Properly
In the day-to-day running of your business, you’ll need to spend money to make money. Despite handing off the accounting job to your bookkeeper, you should remain keenly aware and informed of what expenses you need to keep a record of and what details those records should contain if you’re going to report them as tax deductibles and thereby reduce your tax obligation.
If these expenses aren’t properly documented, you will pay more tax than you should, and no bookkeeper in the world can change that.
If you’re unsure how to proceed with your accounts, speak to Kevin Martin Accounting to get the best bookkeeping services in Halifax and all the advice you could ever need. Contact us now!