Here are some suggestions on taking papers to the accountant for your business accounting. The advice is based on our experience. Some of our customers are delivering us papers not quite in the way we advise. Sorting papers before delivering can improve the quality of your accounting and reduce your costs. Here are some tasks that may help most, if not all, of our customers.
Firstly, you should sort all bills by payees. For example, make separate stacks for bills from Esso, Canadian Tire, Consumers Gas, etc. You need not sort bills by account (e.g. automobile maintenance, rent, etc.). There is also no need to sort bills by month, as long as all months are in the same fiscal period/year.
Secondly, you should sequence all canceled checks in the order in which they appear on the corresponding bank statement.
All charges on the statement that are not supported by canceled checks, should be identified (e.g. with \'x\' marks). For better understanding of above suggestions, please look at one of our audit trails reports.
Thirdly, each deposit on the bank statement that are your own funds but not receipts from your customers, should be marked with a code C for capital. Fourthly, you should separate all government/compliance papers (e.g. for RST, HST, WSIB and payroll, etc.) in a separate stack. This way we can get to your compliance work as soon as you deliver the papers. Compliance work is urgent, because delays are subject to penalties.
Fifthly, mark on each bill a code for method of payment, e.g. Ch, Cr or Ca for check, credit card and cash respectively. Any payment not made by check or credit card exclusively used for business be deemed paid cash, e.g. payment by personal check or credit card of another family member. Preferably mark all codes in red. You may start by using only some of the 5 suggestions we have made.
Firstly, you should sort all bills by payees. For example, make separate stacks for bills from Esso, Canadian Tire, Consumers Gas, etc. You need not sort bills by account (e.g. automobile maintenance, rent, etc.). There is also no need to sort bills by month, as long as all months are in the same fiscal period/year.
Secondly, you should sequence all canceled checks in the order in which they appear on the corresponding bank statement.
All charges on the statement that are not supported by canceled checks, should be identified (e.g. with \'x\' marks). For better understanding of above suggestions, please look at one of our audit trails reports.
Thirdly, each deposit on the bank statement that are your own funds but not receipts from your customers, should be marked with a code C for capital. Fourthly, you should separate all government/compliance papers (e.g. for RST, HST, WSIB and payroll, etc.) in a separate stack. This way we can get to your compliance work as soon as you deliver the papers. Compliance work is urgent, because delays are subject to penalties.
Fifthly, mark on each bill a code for method of payment, e.g. Ch, Cr or Ca for check, credit card and cash respectively. Any payment not made by check or credit card exclusively used for business be deemed paid cash, e.g. payment by personal check or credit card of another family member. Preferably mark all codes in red. You may start by using only some of the 5 suggestions we have made.
