How the self-employed can get organized

Whether you run an auto shop, clean houses for a living or have your own accounting business, if you think a shoebox is a filing system, you’re probably spending hours spinning your wheels while you hunt down that note you wrote yourself on the back of…what was that?

How to organize business receipts

People throw away hundreds of dollars every year by losing receipts and forgetting to record potential tax deductions. Never mind the time wasted sorting through messy desks and drawers jammed with paperwork in no particular order.

Collect receipts for business expenses in a basket or file folder as soon as you get them. Keep a notebook in your car for recording business trips: date, purpose, kilometres driven so the tax man doesn’t end up disallowing vehicle deductions because you didn’t keep detailed logs.

Since filing is tedious work, most people ignore it until they’re overwhelmed. File away all completed paperwork as soon as the work is completed. You’ll feel better when your desk and office are clear of all unnecessary papers and you’ll feel less stress because it isn’t constantly on your to-do list.

Declutter old business documents—the right way

Are you one of those folks who feels you have to hang on to everything? Do you know you’re making more work for yourself? Get rid of expired insurance policies, unneeded receipts and outdated paperwork. Shred documents with personal information such as policy numbers, contact information, credit card numbers or other details that could be security risks.

Work smarter, not harder, with templates and automation

Create email templates for messages you send out more than once. Whether you have to answer frequent questions, remind a client that an invoice is due, or tell a member her credit card payment didn’t go through, having a template will save you gobs of time. The more organized you are, the more efficiently you can run your business. Think about what aspects of your business you can automate, as well. For instance, you can set up regular HST/GST payments in your bank account, or automatically order the office supplies you need.

Bank accounts? Keep ’em separated.

Above all else, keep your personal and business banking separate. When you run your business out of a dedicated account there’s never any question about what your expenses are for. When the Canada Revenue Agency (CRA) sees personal stuff in your business account, it will question everything. The same holds true for credit cards. Keep a card dedicated to business separate from your personal spending.

Read more about self-employment:

• Self-employed? Here’s how to file taxes for a side hustle
• Audit-proof your side hustle
• Getting paid in bitcoin: What you need to know
• Winding down self-employment and planning for retirement
• How to make money selling stuff online