You have likely been told over and over to “save your receipts” for tax season. As the saying goes “Every drop makes an ocean.”
Saving your receipts throughout the year could save you a lot in taxes at the year end. It is an added bonus if you organize them as you go and sort them by category. If this doesn’t work for you…don’t worry…find a safe place (shoe box, file folder, etc) and let your bookkeeper sort them out for you at the end of the year. Having someone sort them for you will cost you a little more, however, the tax savings can be quite significant. So it’s well worth it!
Often times people are left owing more than they should to CRA at the end of each year. Many tax benefits and deductions are missed simply because people do not keep their receipts, (ie: receipts for public transit passes)
It is very helpful if you write the on the receipt how the purchase is business related. (ie: back of Restaurant receipt: “Dinner with Joe and Jean – Discussed marketing collateral”) . This simple step takes just a few seconds but will erase any question of the validity of the receipt when claiming in as a “meals and entertainment” expense.
No matter which system you choose, whether it be DIY or hiring someone you should keep all your receipts. Paying Less Tax and receiving a healthy refund or credit at tax time, makes tax season something to look forward instead of dreading!
Keep your Receipts
Leave a Comment: