---
title: 7 Benefits of Good Bookkeeping for Your Business Tax Return
description: Well-managed records are critical to the success of any company, but unfortunately, this is something that falls by the wayside for many businesses. In this blog we have listed the seven benefits of good bookkeeping which can see your business make significant savings on its tax return.
image: https://www.koroll.ca/hubfs/Koroll_bookkeeping_benefits.jpg
---

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## [7 Benefits of Good Bookkeeping for Your Business Tax Return](https://www.koroll.ca/koroll-and-company-blog/7-benefits-of-good-bookkeeping-for-your-business-tax-return)

 [fa icon="calendar"] Sep 28, 2018 10:00:00 AM / by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll)

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![Business owner doing bookkeeping](https://www.koroll.ca/hs-fs/hubfs/Koroll_bookkeeping_benefits.jpg?width=800&name=Koroll_bookkeeping_benefits.jpg)

Well-managed records are critical to the success of any company, but unfortunately, this is something that falls by the wayside for many [businesses](https://www.koroll.ca/business-advisory).

The problem is that poor record keeping often leads to missed opportunities and, when looking at taxes, your records can be the difference between you optimizing your tax return and paying substantially more than you ever should have. 

To help demonstrate the importance of good record keeping, here are seven benefits:

#### 1 - Observe Progress and Grow Your Business

Good record keeping allows you to better track the progress of your business so that you have a stronger understanding of how your company is performing. From determining what items are selling to identifying cost savings, good records will help you optimize your business for success.

#### 2 - Prepare Statements

To prepare accurate financial statements, such as income statements, balance sheets and statements of cash flow, you need to have well-managed books. Not only will it help provide a clear picture of your business, but they will also be critical when working with banks and creditors.

#### 3 - Track Deductible Expenses

Proper record keeping will ensure that you don’t miss deductible expenses that will lower your business income - resulting in greater tax savings for your business.

#### 4 - Prepare your tax return

When filing a corporate, business or personal tax return, good recording keeping is essential to ensure you optimize your after-tax position. In addition, the same records will help support your claims if you are ever assessed or audited by the Canada Revenue Agency (CRA).

If your records are poorly kept, and you are unable to supply the necessary supporting documents, the CRA may reassess your return, which could result in you owing additional taxes.

#### 5 - Plan for Payments

Maintaining proper records will help ensure you have the cash flow available to cover upcoming expenses, minimizing late fees and interest while allowing you to maintain strong relationships with your vendors.

There are many options for maintaining records. They can be maintained manually, using spreadsheets or with a bookkeeping software. If you do not have the time or resources to maintain your own records, a professional, such as [Koroll & Company](https://www.koroll.ca/), can help.

They will have the skills and expertise to ensure your records are effectively maintained while also helping you with business decisions and tax preparation.

For more information on proper bookkeeping, or for help maintaining your books, [contact us today](https://www.koroll.ca/contact-us).

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---

The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.

## About Koroll & Company

 At Koroll & Company we grow our firm through satisfied clients referring us as a trusted accounting firm to their friends, family members and associates. The only way we know how to achieve this is strive to exceed your expectations and provide you with exceptional service. We have 20+ years servicing Newmarket, ON and the surrounding areas, and look forward to servicing you next. So give us a call and speak to a friendly staff member from Koroll & Company today!

 Topics: [Small Business](https://www.koroll.ca/koroll-and-company-blog/topic/small-business)

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#### Written by [Allen Koroll](https://www.koroll.ca/koroll-and-company-blog/author/allen-koroll)

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