Top Bookkeeping Practices for Self-Employed Professionals

Managing your finances as a self-employed professional in Calgary can be challenging, but maintaining organized records is essential for success. Here are some top bookkeeping practices to follow:

1. Track Every Expense

Keep track of all business-related expenses, no matter how small. This includes office supplies, software subscriptions, and travel expenses.

2. Separate Personal and Business Finances

Open a separate business account to avoid confusion and simplify tax reporting.

3. Use Bookkeeping Software

Invest in accounting software like QuickBooks or Xero to streamline your bookkeeping. This helps you track income and expenses and prepare for tax season.

4. Keep Receipts and Documentation

Always keep receipts and proof of payments. This documentation is critical for deductions and audits.

5. Plan for Taxes

As a self-employed professional, you must pay both income tax and CPP contributions. Set aside a portion of your earnings for taxes.