In Canada, the tax filing deadline for self-employed individuals and their spouse is June 15 (but taxes payable are due April 30th). The biggest reason I get for clients deferring to the last minute to file (or filing late) is the lack of organization of their receipts. Here are some tips to get you organized and tracking your finances regularly:
1 – Choose how you’re going to track your financial transactions (ledger book, spreadsheet, MINT, Money Tracker, WAVE accounting, Quickbooks, SAGE or other bookkeeping software) – I personally use a combination of WAVE (for personal), Quickbooks (for my business) and Excel (for cash flow planning)
2 – Depending on the method of tracking, download an app to your phone to scan receipts (I have WAVE Receipts for my personal expenses and HUBDOC for business receipts that links to QB)
3 – Make a date with yourself every single week, for an hour, to scan your receipts and update your finances, balance your checkbook if you will.
4 – Keep receipts and invoices organized either in electronic folders by transaction type, stapled/matched to your credit card/bank statement or in paper format in a tabbed binder.
If you follow these 4 steps alone, even if you don’t understand the numbers, at least everything will be complete an organized for your accountant come tax time, and you won’t have to wait for the last week of the filing deadline, nor incur costly late-filing penalties due to disorganization. Hey, you may even file early and knock one more thing off your list to stress about!
If you need help getting organized with your finances, I can help or connect you with someone else who can. Send me an email Linda@visionspire.ca
[author] [author_image timthumb=’on’]http://220.127.116.11/wp-content/uploads/2017/12/IMG_0012-resize-square.jpg[/author_image] [author_info]Linda Spencer is a CPA, CA, Canadian Tax Specialist, Business Planning Consultant and Money Mindfulness Coach. Her mission is to eliminate the stress and anxiety you experience around money and taxes, by empowering you with the know-how and mindsets to improve your business success and financial wellness, so you can have more harmony, joy and abundance in your life. [/author_info] [/author]