When it comes to preparing your taxes, or, rather, preparing for your taxes—if you’ve heeded our earlier advice, a small business tax accountant will be doing the grunt work for you—is there ever such a thing as having too much information at your disposal? You’ve kept meticulous records—every invoice and financial statement and nearly every receipt, right down to an impromptu lunch meeting in a food court at O’Hare during a fleeting layover. But do you really need it all?
In short, yes. Sound recordkeeping makes a world of difference in what it’ll cost to prepare your corporate tax return. Fees with tax consulting services begin to escalate with each missing piece. So it’s always closer to the ideal to hand everything over to your accountant and let him or her determine what, if anything, is extraneous.
As to what documentation is essential, for corporations, current and comprehensive records of the following:
- Online business transactions
- Minutes of your board of directors’ meetings
- Minutes of your shareholders’ meetings
- Information about the ownership of the shares of the corporation’s capital stock, including transfers
- The general ledger, or other books of final entry that contain the summaries of the year-to-year transactions
- Special contracts or agreements necessary to understand the entries in the ledger or books of final entr
Returning to our opening point, corporations are also required to keep documents to support their transactions, particularly, according to the Canada Revenue Agency, for those engaged in “international, non-arm’s length transactions.” Those corporations must retain all documents related to their transfer pricing po
For assistance with your accounting and tax preparations, click here for a free (no-obligation) consultation with CA4IT. As one of the most respected accounting networks across Canada over the last quarter-century (and one of the few that’s ISO-registered), we specialize in business accounting services for independent contractors, consultants and entrepreneurs.