Andrea asked:

I have become an independent representative for a company called Retire Quickly. I've been in business for two months now and I think I'm doing well. The business is entirely Internet based. The products I sell are sold entirely from the internet to my clients.

I'm in Ontario. For now I've just been keeping my receipts of what I spend and what I make. What else should I be doing?

Robert Gold answered:

First, look at buying a small business accounting package. Quick Books and other similar software allow you to easily organize your expenses so when it comes time to file taxes or otherwise track how your money is coming and going, you can do so with minimal time and effort. An Excel spreadsheet would work, but the simplicity of setting up the accounting package is worth the small extra cost.

Second, consider the personal expenditures you make related to your business. Computers and other equipment you use in a home office can be expensed or amortized and can be used as tax deductions within the business. In addition, partial amounts of your mortgage interest and property taxes may be deducted in a similar way.

Third, once you have organized yourself and thought about your personal and business expenses, get in contact with a chartered accountant, sooner than later! An initial consultation allows for some preliminary advice to be given and for some discussion about your business's direction. Many accountants will not charge for this meeting if there's a chance you will become a client later on.

About the author

Robert Gold, MBA, CA is a Managing Partner at Bennett Gold Chartered Accountants in Toronto, Ontario, providing a range of tax and accounting services to large and small home-based businesses. Visit the firm online at www.BennettGold.ca.

 
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