Time Reports: The Importance of Tracking Your Time

As a business owner you may not be keeping a time sheet each day. Those of us who sell our time are required to track our time if we want to get paid for the work we do for clients. I have long suggested that all business owners track their time so that they know where it goes. I have talked before about whether you should hire an assistant if you find out by looking at your time reports that you have a lot of tasks that someone else could be doing. Those of us who pay ourselves and others by way of dividend have another reason to be tracking time in 2018. CRA is only going to allow us to pay dividends to family members who are active in the business. How are we going to show that someone is active in the business if we don’t have time reports?

If you plan to pay yourself or any other family member by way of dividend, you should be consulting with your tax advisors. These rules are new and we don’t know how they will be applied. However, it would appear that having a time report for you and any family members who are active in the business will be a good step towards documenting how active family members are in the business, and you just might find out where your time is actually going.

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