Chat line trail dating do and dont
If you are going to take stupid risks, at least educate yourself to the full extent of taking these risks so you go in with your eyes wide open ... I'm fairly certain that government finance departments in most countries around the world have similar powers. It is not a good practice to write cheques (checks for my American visitors) for business expenses on your personal bank account; or charge business expenses on your personal credit card. If you are a sole proprietor, the bank and credit card accounts just have to be separate ...
they don't have to be "business" accounts with the bank or credit card agency ...
You will have to discipline yourself to ensure you have the supporting documents for each transaction you download if you want your accounting system to be audit proof.
Establish some kind of procedure to make sure this is done.
For example, sometimes till receipts do not have a description of your purchase.
In these instances, write on the back what the purchase was for.
but I have covered it in two other chats; my chat on internal controls and my chat on the monthly financial review ... I have a tip for you; just follow the country link you run your business from.
which often results in higher / additional service charges.
Because legally you are your business, the "non-business" accounts can be opened in your name even though you will use them for business purposes. This type of visual audit trail allows you to avoid intermingling business transactions with your personal accounts.
That is why I stress that you set up your bookkeeping system to be audit proof ... A question often asked is, "Are credit card statements valid receipts? Let's say you purchased gas for your vehicle on your credit card. like debit and credit card slips, you need them in addition to your receipt, to show proof of payment ... Third party source documents provide the auditor with verification of the transaction from an outside third party ... If you are wondering if the CRA (Revenue Canada) or the IRS (Internal Revenue Service) accepts photo receipts, click here for more information.
A word of caution when using the terrific feature most small business accounting software packages have - downloading your banking transactions.