Is the tax return season a nightmare for you? If you keep good records, you'll find everything in order when you need it.
Find out what you can deduct; check with an accountant or tax lawyer.
Then buy a calendar with detachable pages. Every night jot down any tax-deductible travel, entertainment and meal costs; note the time, date and place, and the nature of the business conducted. It is a wise move to save all receipts, no matter what the amount, for at least 3 years.
Keep all your receipts in large envelopes organised by category: telephone bills, office supplies and so forth.
Pay all your bills by cheque. When you balance your bank statement, place the receipts for deductible expenses in the appropriate envelopes.
Keep a separate envelope for records of any share sales or other capital gains.
Keep a record of the figures you submit on your income tax return form, in case you need to refer to them during the year.
