Still Time to do Year-End Stuff

January 1st marks the beginning of a new taxation year for Canadian individuals. For those who carry on business as individuals, there are a couple of tasks that need to be done to finish up 2018 and get 2019 off to a good start.

If you use a vehicle for business it is likely that you need to keep a mileage log.  If you did not already take a picture of your odometer reading with your phone, then you should do so. The purpose of this is to provide some credibility to your log. The picture proves the odometer number at the end of the year. If you have inventory then you should count it right now if you have not done so already. You need that inventory number for your personal income tax return.

Corporations with December year-ends also need the inventory number so if this applies to you and you have not yet counted your inventory, get at it.  You also need to do the invoicing for the end of December. Remember that you must report your income billed during 2018 and you are supposed to bill your work promptly. You are not supposed to date the work you did in December with a January invoice to put off paying tax on the income for a year. CRA already thought about that one.

So, record your odometer, count your inventory and get your billing done. This is all easier to do now than in April when your accountant is asking you.

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Painless Financial Training Group Inc. with Debi Peverill

Understand Financial Stuff, Painlessly