New Year New Shoebox

By Tiffany Keeping

It’s a brand new year, so let’s make an impact and start this year out right. This is the year you get your accounting and finances in order and I‘m going to give you a few tips and tricks from a pro to help you do just that.

First, let’s talk about what you need to keep for your tax return and/or personal business bookkeeping for 2020.

Mark your calendars, the due date for filing your income tax return and paying any related tax balance due is April 30, 2021. If you are self-employed or have a spouse or common-law partner who is self-employed, you both have to file a return by June 15, 2021, however, any balance owed is due by April 30, 2021. I have a detailed list of personal slips and business receipt information that you need to keep here in the new client forms section.

Second, you need to pick an organization system.

There are many organization systems for filing but I find the following to be the most useful and easiest to pass along to your accounting professional:

1. Organize everything in a monthly system from January – December. Every category that you need to do your monthly bookkeeping goes into the appropriate monthly file folder.

2. Organize everything in alphabetical order for each category. Separate by accounts receivable, accounts payable, payroll, bank statements and credit cards. *This one is my favourite.

3. If you are a colour coder, then you can pick a different colour for AR, AP, Bank Statements, etc.

4. Also, if you have any personal tax slips such as a T4A have them in a separate file.

The most important organizing tip I can give you is pick a system that works for you. If it doesn’t work for you; then it won’t work at all.

Third, if you want to make sure you get the most of the tax credits available to you then I suggest you hire a tax professional like myself.

Tax professionals help you take advantage of all the available credits and ensure that you have everything filed appropriately. I have some worksheets available on my website that I use with my clients to help them organize their numbers.

Fourth, let’s talk about getting ahead of your tax preparation and bookkeeping for 2021.

The following are a few of the tips I give my clients to help them get set for a stellar new year:

I recommend recreating the bookkeeping organization system that you used for 2020. Provided it worked for you last year. If your filing/organizing system didn’t work for you please try another one or recommit to tracking your number and organizing your paperwork.

Commit to organizing your invoices, receipts and bank statements at least once a month. This is a habit that you need to form and just like every habit it takes practice, commitment and time. Be patient with yourself if you fall off the train a couple times or if you aren’t used to filing everything once a month.

As I said in my previous article, it’s so important to know your business numbers, so I recommend you start tracking your numbers monthly. There are various apps you can use to track your revenues, expenses and kilometres. If you would like some guidance on how best to track your monthly revenues and expenses please reach out to me at the contact information below.

Are you ready to start your year off right with a brand new shoe box? One that works for you and that is less stress and costly than last year. Call me today at (780) 264-0860 or book a consultation HERE and let’s see how I can help you recreate your shoebox for good!

Tiffany Keeping

Awen Bookkeeping Connect with me here (780) 264-0860