Now that tax season is over (or winding down), for many of our clients it is back to “business as usual”. Your tax filing has come and gone, you’re starting fresh for another business year and maybe right about now, you’re wondering how long you need to keep your tax records for.
The Canadian Revenue Agency (CRA) recommends keeping your tax records and all supporting documents for six years. If you filed any amended returns after the original one, the six year period starts after the amendment submission. You will want to keep all your important records in case of an audit.
Keeping your files is important for several reasons:
- They can help in business planning – these tax records (and supporting documents) can provide valuable information that can help you in the business planning process. It can help you identify your source(s) of income and any expenses that you can claim tax credit for
- You have documents ready in case of an audit – If the CRA reviews your return for any reason, you will have the documentation to support your initial claims
- They can help in figuring out any taxes owing
It will also be helpful to store these documents in an organized manner so that information is easily accessible if you ever need to go back and review.
Sometimes, it’s easy to forget the humble beginnings that companies start out from but here at Five Star Accounting, it is never far from our minds. We started out as Hospitality Services Inc. (HSI), a bookkeeping service catered specifically towards businesses in the hospitality industry. We understood the unique needs of this fast-paced and demanding industry and offered tailored services that met those needs. At the time, we were an “all-services” support firm so we offered many other auxiliary services as well.
Fast forward a few years, we realized that our core competency was in accounting and bookkeeping – it was also what we were most passionate about. We realized our skills and expertise that we had accumulated over the years could serve businesses across many different industries – not just those in the hospitality industry. That is when we rebranded to Five Star Accounting and began working with clients outside of the hospitality industry. Today, we work with both for-profit and non-profit organizations, including those in retail, professional services, and of course, restaurants too!
We are extremely proud of our humble beginning… and every challenge and triumph we’ve had along the way. If you are a small to medium sized business in Winnipeg, we would love to hear from you. After all, we’ve been where you are and we would love to lend a hand.