Written by Jenny Okonkwo
Record-keeping, the ‘bug-bear’ of the owner-managed business, becomes critical in the period leading up to the preparation of your corporate income tax return. Incomplete, or missing records, can lead to under-recovery of business expenses, unnecessarily increasing tax liability.
And yet technology offers a simple resolution. With Multi-function printers containing inbuilt scanners costing less than $200, document scanning is now ‘almost free’ to do. ‘Google Drive’, ‘Dropbox.com’ and others provide a facility to share and index these documents securely with your tax accountant.
The key is Discipline. Scanning paper records such as cash receipts within a few days of purchase. With so many small business owners remembering the headache of expense filing in the corporate world, its an important lesson we need to re-teach ourselves. When you’ve down-sized to less than 10 employees, fumbling around for receipts can be a frustrating and time-consuming experience.