Records are accounting and financial documents that you must complete and keep in an organized manner. They are necessary to record all the activities that are useful for your tax return (sales, expenses, salaries, taxes, etc.) as well as to optimize the productivity of your business. The task seems tedious, but thanks to the development of technology, you can use powerful applications to simplify the management of accounting records and activity and payroll records.
Keeping an accounting record means updating all financial and accounting transactions made by a company during a given period. Every company must keep the following records up to date and for a minimum of 6 years.
These documents include:
The filing of records is mandatory in Quebec, as it is across Canada, for all businesses, trusts, non-profit organizations, educational institutions, municipal governments, hospitals and all taxpayers.
Financial authorities use record keeping to verify the tax return and whether you have collected the GST/HST in accordance with the law. In addition to keeping the records up to date, you have to keep all supporting documents for each transaction recorded in the record for a minimum of six years.
A payroll register is a document that collects the information contained on the employees’ pay slips. This register is mandatory for the employer and all the information required by the labour standards (CNESST) must be included.
The payroll document must contain:
You have to keep sufficient GST/HST information in your records in the following situations:
Beyond the legal obligation, accounting records bring several advantages for the performance of companies.
Good records contribute to significant tax savings. They serve as a reminder of the deductible expenses and input tax credits (ITCs) you may be eligible to claim. If you don’t, you may forget one or more deductible expenses when you prepare your income tax or GST/HST return.
The record of daily activities allows you to determine the source of your income and whether you have to collect the GST/HST. If you cannot determine the source of your income, you will not be able to prove that some of it is non-taxable.
Keeping records prevents most of the problems that can arise when your tax or GST/HST returns are audited. If financial auditors cannot calculate your income because your records are incomplete, they will have to use other methods to determine your taxable income and GST/HST collectible. This will take more time. Also, if your records do not include proof of claims, claims may be denied.
Complete and organized records give you a clear picture of a company’s financial situation. They help you determine the gains, losses and value of your company. Records also allow you to track trends, compare returns from different years and prepare your budget.
Through record keeping, you can identify the strengths, weaknesses and problems your organization may be experiencing. You can also analyze KPIs to make forecasts and informed decisions about your company’s financial strategy.
Activity logs allow for real-time tracking and control of expenses to improve profitability.
The records of transactions in the registers allow to:
Most businesses use accounting software to simplify the process of recording documents and accounting transactions. All you have to do is scan the supporting documents and upload them to the correct location on your software.
By using the Mobile Punch application, you can get rid of paper, save time and money. Moreover, with Mobile Punch, you have access to a timesheet report by task that is not only CCQ compliant but also mandatory on some construction projects.
The Mobile Punch application generates online timesheets for each pay period in a quick and easy way. The application also accounts for overtime, bonuses and holidays and adjusts fees by activity category.
Your employees simply punch in and out and the application calculates the working hours for proper compensation. Thanks to the flexibility of the application, administrators can make changes or corrections to timesheets. Mobile Punch also allows you to extract payroll reports as PDF or Excel files.
Mobile Punch also offers a scheduling service to manage the schedules of each employee. The tool contains all the information needed for the assignment of tasks. The scheduling is optimal and takes into account holidays and special cases of your employees. An electronic calendar is available to save your employees’ schedules and plans in the cloud for access whenever you want.
Mobile Punch is the ideal application to track employees on the move. Through GPS signaling that works without an Internet connection, you can check the presence of staff at the workplace. In case of unexpected absence, you can intervene to replace the employee or reorganize tasks to maintain the planned productivity level.
The application is designed to process and transfer a large size of documents useful for your business (plans, job descriptions, photos, purchase orders, etc.). Mobile Punch can be synchronized with your accounting software to ensure automatic data transfer.
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