Being audited by the CRA is probably one of the worst experiences you could ever go through. The Canada Revenue Agency audits businesses whose corporate tax returns seem odd.
Getting audited as a business owner is a likely issue you will face, so you need to have the correct systems to avoid it.
Here are the most helpful tips written by our professional accountants of +25 years to support you in decreasing your chances of being audited by the CRA:
Thoroughly Learn The CRA Regulations
You need to ensure you’re following all the rules and regulations to help make the review process and communication with the CRA more manageable. CRA has stringent regulations and guidelines that need to be followed with full compliance. Working with a business accountant ensures smooth and hassle-free communication between yourself and the CRA. A partnership of this nature helps reduce the need for a business owner to learn the CRA regulations’ ins-and-outs.
It Would Be Best To Get Organized And Know How To Keep The Necessary Documents
You will need to understand the correct terminology and procedures that the CRA undertakes so you know which documents to keep and organize based on what the CRA wants to see.
You Don’t Know How To Do The Books Correctly
You need to ensure CRA required documents are accurate. It can be a stressful, complicated and confusing process that takes away valuable time from your schedule. Hiring accountants who are experienced and extensively skilled in dealing with a rich spectrum of CRA filings, issues, documentation, and ensuring their strict regulations, guidelines, rules and legalities will follow all of that with full compliance.
Business Owners Shouldn’t Be Wasting Their Time Trying To Learn How Not To Get Audited By The CRA
To fulfill your role as a business owner or high-level executive, worrying about the specifics on how not to get audited should not be how you’re spending your time. Hiring accountants to become the authorized representatives to review the books and communicate with CRA on their behalf is the better route. The right accountant will be dedicated to troubleshooting issues that come up along the way, save your time, and allow you to focus on your business.