Electronically filing your taxes has its benefits. Not only does it cut down on the time it takes for CRA to process your return, you don’t have to worry about sending all that paperwork in.
When you submit with NETFILE, you don’t have to send copies of your expense receipts unless CRA specifically requests them. But you do need to keep your receipts for at least six years just in case CRA requests to see them.
When it comes to keeping track of bills, receipts, and invoices, organization is the key. Trying to track down an old receipt may not be easy in a sea of paperwork.
Here are a few basic ways to help you organize receipts:
1. Collect receipts – Check for any missing receipts, print out a copy of any emailed receipts and then check out the list of business expenses on the CRA’s website to make sure you are not forgetting something you can write off.
2. Go digital – Scan receipts to finance tracking app. It may also make it easier to find your receipt should you need it in the future.
3. File your paper receipts – Even if you’ve gone digital, you don’t want to throw out the originals. You can do this easily with a banker box and some folders. Label each file with the expense and put all receipts in the correct file. Once this is complete put all the files in the box label it with the year and store it away.
With so much paperwork from expenses, invoices, and other day-to-day costs, many small business owners have decided to go digital when it comes to expense tracking.
Check back next week for a full review on the best receipt tracking apps!