Uh, even, you know, their corporate taxes, their GST, their personal taxes, and they put money into it. And um, that just complicates things so much. We just really believe that you need to bank accounts. Well, one bank account for your operating expenses and one credit card, your credit card, you may need an extra credit card for an employee if they do a lot of, um, purchasing for you and your spouse or your spouse. But by really those were the only two things you need your balance sheet. You should be able to tell you how much you’re gonna need to pay in taxes. And so you should be able to see that in your account. You don’t need to have a separate account for those. And I mean, I know some of the business owners would like to have one or two bank accounts just, just cause they have, uh, the, you know, the comfort level with Edmonton Bookkeeping.
Um, and that’s not bad. Um, what we’re trying to say is that like having those four extra accounts or like three extra accounts just to track your GSD and your corporate tax, although that might be effective for you to track your expenses, it might be a necessary, um, that’s what, that’s why we’re doing the Edmonton Bookkeeping, right? Yeah. Is to track those expenses and to be able to rely on those reports as opposed to, um, let’s say, uh, putting them up to the end. Right? That’s right. Yeah. So yeah, one or two not bad. Yeah. And again, it’s, it’s not much, but it’s still a little bit of saving in the bank charges I would say. Right. That’s right. Also, going back to the first point about, um, how to make, how being organized can make your bookkeeping easier. If you have a whole bunch of different bank accounts, you constantly looking to see where you took that expense from, where did that expense come from?
Which account did I use to pay this? And so with one, you know, the expenses are all coming out about one accounts. Yeah, exactly. Um, is it okay to use my personal bank account for business? We strongly recommend that you don’t do that. Um, you know, if you have to pay for some expenses personally, we can always credit it to your shareholder loan. But again, we’re, we’re talking about tips for easy will keeping so much easier if you just keep your business and your personal accounts separate from each other. Much easier tracking. Yeah, absolutely. And also then, uh, again, your bookkeeper will know which is personal and which is a corporate expense. If it’s all lumped together, you know, the bookkeeper doesn’t know when you went out for that meal, was it a business meal or was it a personal meal? So then you’re again going back to being disorganized, it’s gonna cost you more Edmonton Bookkeeping.
Those meetings that you have with your bookkeeper are going to be so much longer than you wanted them to be. Yeah. Yeah. Um, does it matter how the income statement is organized? Yeah, absolutely. Um, a good bookkeeper should have your, your income statement organized so that you have your, um, your revenue at the top, cost of goods sold and then your expenses and your expenses should be, um, but it isn’t numerically descending. Uh, so that you can see at the top of those expenses, that’s what you spend the most money on. Normally rent, salaries, that kind of thing should be at the top. Um, if you’re, the first thing you look at is um, uh, meals maybe or um, interest of main charges, you might focus on that and, and fake try to figure out how like spend hours trying to figure out how to get your bank charges lower when it could have used that time to minimize your costs and the higher track costs with Edmonton Bookkeeping.
Exactly. Exactly. Yeah. Um, just with that as well, not only is it important to, um, how the income statement is, is organized, but you also need to be looking at your balance sheet with your intent statement. You should never look at your income statement by itself. They go hand in hand. They do. Um, do you need a separate account for every expense? No. Um, the main expenses, yes you do. But um, for example, you don’t need um, an account for um, your interest in bank fees and then an account for your tax, um, interest and you know, interest on something else. Interest in bank fees is good. You can put it all into there, makes it small. You’re, your income statement will be one page. You can get at one page, much easier to look at. Um, you know, you don’t need accounts for meals that you have with your staff meals that you have with a business associate meals that you have with potential clients and all can go into meals and entertainment and, yeah Edmonton Bookkeeping is the best.
Um, yeah, cause we would see, we would see clients that would have a separate account just for Netflix. That’s, yeah. We’re doing so it’s a bit, yeah. [inaudible] so, um, do you need to keep all your receipts? Yeah. You know, your bookkeeper doesn’t necessarily need to see all of your receipts. Um, but definitely you need to keep them. I think the CRA requires you to keep them for seven years. Um, they may never ask you to see them, but there is that opportunity for them to, to send you an audit and expect to see those receipts. So definitely keep your receipts for seven years. Yeah. So I think that’s all our questions for today. I hope you guys enjoyed it. Um, if you have any questions, feel free to comment on our, uh, on our channel. Uh, please like, and subscribe and we’ll talk to you guys later with Edmonton Bookkeeping.