By Joanne DeMichele on Wednesday, 03 July 2024
Category: CRA

What is the best accounting procedure for a small business?

For small businesses in Canada, simplicity and efficiency are key when choosing an accounting procedure.

The easiest accounting procedure for a small business typically involves using a single-entry bookkeeping system and leveraging user-friendly accounting software.

According to the CRA, farmers, fishers, and self-employed commission agents can use the cash method or the accrual method to report income. All other self-employment income must be reported using the accrual method.

Here’s a step-by-step guide to setting up and using an easy accounting procedure:

Contact our office for professional advice when setting up your accounting system. It will save you time and money in the long run

Summary

By choosing cash basis accounting, using single-entry bookkeeping, leveraging accounting software like QuickBooks or Wave, and maintaining regular financial updates, small businesses in Canada can set up an easy and efficient accounting procedure. This approach helps ensure accurate financial records, simplifies tax filing, and provides valuable insights into the business’s financial health.

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