Another reason to have good bookkeeping practices
Want to minimise your chances of getting audited?
Many small business owners fail to keep sufficient books and records. Business owners may not realise it, but this failure alone can be enough reason for you to be audited by the Canada Revenue Agency (CRA).
As well as inadequate bookkeeping, claiming personal expenses as a business deduction is another trigger for the CRA to perform an audit. So keep your business and personal expenses separate and have separate bank accounts for your business and personal finances.
And don’t forget to file and pay your taxes on time!