I read Michael Campbell’s newsletter the other day and he talked about Business Secret #1. I thought I would share it with you.

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Business Secret #1

The first thing to do is separate your business and personal accounts. Evenif you’re not incorporated and don’t have a company account, use separate cards for each.

Use your Gold card for business and your Silver for personal. That way, if you ever get audited, you’ll have clean records for the tax man to look at.

That triggers or flags an audit? Sudden jumps in income, deductions, travel or complaints. If you trigger a flag, you’re 3-5 times more likely to get audited if you, or a “bookkeeper” did your taxes.

Look for and hire a professional. In Canada they’re called CGAs. In the US they’re CPAs. In the UK they’re CCAs.  These professionals – and others like them – are held accountable for their accounting. They must abide by the rules of their associations and the government.

Get one and you won’t lose any sleep over your taxes.

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So Business Secret #1 is to get a Professional Tax Accountant.

Regards,

Glenn Wallace
Business Adviser
Chartered Accountant
CPA
Australian Registered Tax Agent
Superannuation

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