Expenses, Self-Employed

Self-Employed Expenses: Tracking Business and Personal Expenses

Filing your tax return electronically has advantages. Not only does it cut down on the time it takes for Canada Revenue Agency (CRA) to process your tax return, you don’t have to worry about fitting all your supporting documentation into one envelope.

When you submit your return online using tax software like TurboTax, your return is submitted to the CRA via NETFILE, you don’t have to send copies of your expense receipts unless CRA specifically requests them. This includes both business and personal expenses, such as medical or moving expenses. You do, however, need to keep your receipts for at least six years just in case CRA does request to see them.

When it comes to keeping track of bills, receipts, and invoices, organization is the key. Trying to track down an old receipt for your son’s braces might not be easy in a sea of paperwork. If you’re storing your paperwork in a shoebox or file cabinet, consider making a note on each receipt as you file it. Divide your paperwork into tax years if possible.

If you’re self-employed, your shoebox might overflow rather quickly. With so much paperwork from vehicle expenses, supply invoices, and other day-to-day costs, many small business owners have opted to go digital when it comes to expense tracking. Apps like QuickBooks Self-Employed make it easy to keep your receipts organized electronically.