Kosey Financial Services

Top 10 Audit Prompts:

When it comes to your small business, what will trigger the CRA to consider an audit?

Major Changes in Income or Expenses; CRA likes things to be predictable, when things change dramatically, they will ask questions.
Repeated Losses; really? For how many years do you think your business can sustain losses before CRA will question it?
Expenses that are different than others in your industry; if you claim $10,000 in travel and all of your competitors don’t claim travel, CRA will question it.

Underreported Earnings; CRA conducts very detailed statistical analysis of businesses. If you are in a certain industry, they know what your margins should be; if you are way off, they will question it.

Large Charitable Donations; Your business is not doing well, but you donate $10,000 to charity? They will question it.
Home Office Deductions; There are very specific criteria required to claim home office expenses, if you don’t meet the criteria, they will come calling.

Discrepancies between GST Returns and Tax Returns; yes, they do check! If your revenues do not match or your expenses are not the same, they will question it.

Shareholder Loans; if the loans appear on your financial statements (as a receivable) for 2 consecutive years, expect a call! CRA does not like Shareholder loans that should be considered income and taxable.

Errors and Missing Information; If you get dividends, investment income, or rental income, CRA knows this. If you neglect to report it on your tax returns, they will call.

Divorce! – Yes, there is nothing worse than a disgruntled spouse. One call to CRA declaring that you have hidden income, over-reported expenses etc. will get you Audited!
There are a few other ways you can get yourself audited, but your best defense is a good accountant and accurate, detailed records!

A Cheap Bookkeeper can be Very Expensive!
Don’t skimp on a bookkeeper, it could end up costing you tens of thousands of dollars in additional taxes, interest and penalties.

1. Our Mission
Our mission is to provide the best possible financial services to small business and their owners, at prices they can afford.

2. Our Vision:
we can provide small business owners with accurate, timely information, allowing them to make informed financial decisions.

3. Our Testimonial :
Large enough to handle your accounting needs, small enough to know your name when you call.

After working as controller with start up mid size business, I realized that the small business market could not afford the services available from CPA’s and the larger firms, while the services from the local ‘bookkeeper’ were not adequate.

1. Our Mission
Our mission is to provide the best possible financial services to small business and their owners, at prices they can afford.




1. Our Mission
Our mission is to provide the best possible financial services to small business and their owners, at prices they can afford.

2. Our Vision:
we can provide small business owners with accurate, timely information, allowing them to make informed financial decisions.

3. Our Testimonial :
Large enough to handle your accounting needs, small enough to know your name when you call.

Our set-up process is straight forward and hassle free. It consists of a Virtuous Bookkeeping Consultant visiting your site.

Our consultants work closely with your staff. This provides us with the opportunity to review your chart of accounts, determine which reports need to be generated and implement any other processes.

We introduce you to the Virtuous Bookkeeping family and the dedicated personnel who are assigned to your business. Secure communication, data storage and exchange portals are established for a seamless process

screening

physical distancing and barriers

good ventilation

frequent cleaning and disinfection of surfaces

source control masking

personal protective equipment