Sign Income Statement Quarterly Online

How to eSign a document: Sign Income Statement Quarterly online

hi my name is Alan Madden I'm a chartered accountant and a tax expert in the Mississauga Toronto in Oakville regions of Ontario Canada in this video I'm going to walk you through step by step how to prepare financial statements for your small business or corporation let's get started the first step in how to prepare financial statements for your company is to get yourself organized you can do this in 3 easy-to-follow sub steps number one locate and sort all of your expense receipts by month I have a habit of putting the expense receipts by month either in a folder or in an envelope for easy storage and location afterwards step 2 print all bank and credit card statements and sort them by month 3 attach all receipts to the related credit card or bank statement this makes it easy to identify how particulars was paid and when it was paid the second step and how to prepare financial statements for your company involves preparing the expensive spreadsheet in this example I have used the business of an IT contractor an independent consultant he is registered for HST and is collecting sales tax from customers you'll notice in the spreadsheet I have subdivided the expenses by three main categories your categories may differ than mine here they are car operating expenses and home office I have further subdivided these categories by expense item it's a best practice to prepare this spreadsheet on a monthly basis this will save you time effort and money at the end of the year for home office expenses I've only the deductible portion on the spreadsheet the deductible portion is equal to the size of the home office relative to the size of the home so for example my IT contractors den is 10% of the total size of his home and therefore he's only deducting 10% of the home office expenses let's look at a particularly an item on this spreadsheet gasps in total my IT contractors spent a total of two thousand six hundred and twenty seven dollars on gas purchases for his car in the year he paid for it by visa seventeen hundred and forty eight dollars through his business bank account eight hundred and seventy nine dollars and he had followed my advice and didn't pay cash at all you'll notice at the bottom of the expense spreadsheet I have sub totals in this example the total amount spent by the IT contractor in the year on business expenses was thirteen thousand nine hundred and six dollars the third step in how to prepare financial statements for your business is to calculate the balances of the special accounts first off is HSC payable in this example the IT contractor has HST payable to the Canada Revenue Agency of eleven thousand three hundred and one dollars HST payable is calculated as the total HST collected in the year less the HST paid during the year HST paid during...