Receipts are required if your small business is audited by the Canada Revenue Agency
Small businesses must keep their receipts for up to 6 years to be compliant with Canadian tax requirements. Businesses are required to provide evidence of their expenses if the CRA requests it or in case if you get audited, so it is important the receipts are organized and complete. A full CRA audit will have CRA staff visiting your office, going through your receipts, requesting additional support documents, and interviewing you and your staff with lots of questions.
Receipts help keep financial information accurate
Keeping on top of your receipts ensures that financial records are accurate, hence allowing the business to make better business decisions. The receipts also ensure that the sales tax is calculated correctly, which then ensures sales tax input tax credits are correct.
Digital receipts make this easier
We use Hubdoc (a Collection and Management Software) which organizes your digital receipts. Hubdoc integrates with QuickBooks Online (QBO) to ensure each transaction has a digital receipt attached to it. If your small business gets audited by CRA, we can efficiently respond to the audit request without (in many cases) an auditor need to visit your business premises. Digital Receipts also assist you in saving money by keeping track of receipts and eliminating manual data entry. Your information is secure, user error is avoided, and time is saved.
Receipt best practices
Receipts should always be added to Hubdoc on a timely basis by email, dragging files to upload, or uploading a photo through the Hubdoc app.
If you are behind on your receipts and need assistance, please contact us. We are experts in dealing with messy financials and setting up a great receipt process so you can stay on top of your financial transactions and you can have peace of mind that it is being handled correctly.
JANUARY 18, 2021 BY STILLCPA