4 Ways We Make A Business Audit Less Daunting
Everyone dreads the moment they receive a business audit letter from the CRA. Let’s face it, unless it’s a letter with a refund amount on it, a letter from the CRA is an unwelcome surprise. But it doesn’t have to be so nerve-racking!
We erase common worries like, the chances of getting audited by the CRA, or the common audit triggers and how to avoid them, and we let our clients focus on their businesses. Here’s how:
1. No Missing Receipts
Sometimes it can be months or even years after everything has been submitted when you receive a business audit letter. And just imagine trying to track down receipts for purchases you made years before. It’s like looking for a polar bear in a snowstorm.
That’s why we get our clients to use ReceiptBank. They can instantly upload their receipts when a purchase is made. No more disorganized shoeboxes with receipts needed! It also allows us to have all receipts readily available when the CRA wants to confirm something. This means no more delays getting additional information to the CRA!
2. Follow Up Throughout the Year
Picture this. You bring your shoebox full of receipts for the previous year to your Accountant in April, and they proceed to ask you question after question about several purchases. Eek! Sometimes remembering what you had for dinner last night is hard enough!
We save our clients the trouble of having to retrace their steps and remember every single purchase made several months ago by providing weekly bookkeeping. That involves us following up with questions about receipts and expenses as they occur, and saves our clients any headaches down the road.
3. No Approximations
In some cases, the CRA will notify businesses that they actually understated their GST and therefore owe more money. If you’re bringing receipts to your Accountant after the year is over, there’s likely been some approximations made regarding how much GST you owe.
We take the guesswork out of your GST by looking at every receipt throughout the year and correctly stating it in your tax return. That way when the CRA comes knocking, we provide the receipts to prove that the filed GST amount is accurate. And clients are relieved!
4. No More Wondering, “Why Do I Owe More Money?!”
Corporate and personal taxes can also sometimes lead to surprises (the kind where you owe more money). Ugh. Luckily, because we review all of the documentation throughout the year, the expenses our clients claim in their tax returns match the receipts/invoices we have on file.
We make sure all expenses are valid business expenses and make the necessary adjustments before filing. We know the CRA receipt guidelines, so we steer clear of any unnecessary client disappointment.
At the end of the day, business audits are seamless and easy for our clients. And we save them time and money (who doesn’t want that?). Cloud technology has changed the accounting world for the better, and we use it to make sure clients can focus their time and energy on growing their businesses.