Journals
Journals are where your accountant records the transactions from
the original source documentation. Each type of expense is
recorded on a specific journal. For example, the cheques written
by your business are recorded on your "Disbursement Journal",
the sales your business has, along with the appropriate sales
taxes, are recorded on your "Sales Journal". These are the two
main journals used by most businesses.

If the original documentation goes missing, Canada Revenue
Agency may allow the expense anyway, depending on how
accurate your record keeping systems are.

As with anything, bad habits are hard to break, so it is in your best
interest to develop "good" or proper habits. These items need not
be time consuming; they just need to be done in order to help you
run your business.

TALK TO US …