Preventing Tax Audits: A How-To Guide

TORONTO - Oct. 26, 2023 - PRLog -- Running a small business can keep an owner very busy. In this situation, the last thing a business owner would want is getting audited because of their taxes. Knowing the rules and regulations of the Canada Revenue Agency (CRA) and following a few simple recommendations will help people avoid dealing with this situation.

Keep Detailed Records

Small business owners must be detail oriented and keep all the data from previous transactions. Records are vital to keeping every business organized and thorough. All sources of income and all the business related expenses must be recorded in order to be able to maintain accurate records for your tax forms. Business owners can keeps business records with a commercial software program or with a spreadsheet such as MS Excel based on the volume of the transactions.

Owners or their accountants should  record and maintain the books at least monthly and more often when necessary to keep records up-to-date. If the owner chooses to use a spreadsheet for record keeping it should include columns for income and for each type of expenditure such as...

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