Adequate records


How do I create adequate records?

  • Keep day-timers or copies of your PDA files that show all your appointments;
  • Make it a rule that when you attend a business meeting you keep the business cards of the people you speak to and roughly note in your day-timer what you talked about;
  • Always record name of the person you enjoy meals with and the business transacted. Record the name on the credit card statement or the credit card receipt;
  • If you live in a jurisdiction that charges sales tax, keep the receipts that show you paid the sales tax on all supplies or capital goods. Capital goods are big things like machines, computers and automobiles;
  • Keep your records for 7 years;
  • Always keep bank statements and cancelled cheques;
  • If you run a corporation and take money out for expenses, always print out an expense summary, sign it and keep a photocopy of the cheque paid to yourself;
  • If you have to put money into a business, keep a photocopy of the entire transaction. This should show the source of the money and the money going into the business bank account;
  • Keep both business and personal bank statements and keep these activities separate;
  • Never ever try to write off personal expenses, such as clothes, cosmetics, and movies. Remember if you are an actor or actress you will have to 'prove' a nexus between the expense and your professional income.