How Organized is Your ‘Shoebox’?

A couple months ago, I did a presentation on records management for small business. More specifically, I talked about how some business owners have become experts at ‘shoebox’ bookkeeping, and how those owners can manage their records in a better way.

The CRA has guidelines around what supporting documents you need to keep, so having a good records management system can definitely save time and reduce stress at year-end or in the event you are audited. I have attached the CRA’s guide on keeping records here.

Some other benefits of keeping records are:

  • Helps identify sources of income
  • Reminds you of expenses you can deduct and tax credits you can claim
  • Makes it easier for you to determine your taxes owing
  • Provides you with information on the past and present financial positions of your business or other organization
  • Helps you make good business decisions
  • Assists you in getting loans from banks and other lenders

One very simple step you can take to move away from using a ‘shoebox’ for your records is to purchase an expanding file folder labeled with months. That way, whenever you have receipts or invoices come in, just stick them in the file folder under the appropriate month. It’s as easy as that!

I’m Colleen from Security House Accounting Services. Give us your books – take back your life!

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