Navigating CRA Audits for Small Businesses: Why You Should Consider CRA Audit Assistance
What Small Business Owners Should Know About CRA Audits
It’s no secret that small businesses are often targets for audits by the Canada Revenue Agency (CRA). They can reach back up to six years to review your books. It’s important to know that CRA audits can take a long time and can be costly. Without proper help, it can lead to heavy fines.
So, what makes the CRA pick small businesses for an audit? Here are some reasons:
Picked Out of The Blue: Sometimes, the CRA audits small businesses randomly. This means that your business can be chosen for an audit at any time, regardless of how big it is or what sector it operates in.
Warning Signs: If the CRA sees something unusual in your business’s financial records, it may prompt an audit. This could be differences in income and costs, suspicious transactions, or a record of not following tax laws.
Specific Industry Check: The CRA might also single out certain industries for audits. This happens when there’s a high chance of people not following the rules or a history of tax evasion in the industry.
Information Cross-checking: Lastly, the CRA might pick your business for an audit by comparing the data you gave them with data from other places, like banks or credit card companies. They do this to make sure you’re not hiding any income.
Knowing why the CRA selects businesses for audits can help small business owners prepare and lower the risk of being audited. By understanding how the CRA picks businesses for audits, you can take steps to lessen the chance of being chosen for an audit and make sure your financial records are up-to-date.
How Dexado Accounting and Tax can Assist with CRA Audits
It’s tough for small business owners to go through a CRA audit on their own. That’s why getting CRA audit assistance can be so helpful. Having a pro, like a former CRA auditor, help you during a CRA audit can make everything run smoother and be less stressful.
Dexado Accounting and Tax, a top provider of CRA audit assistance, can help. Their principal has 13 years of experience as a former CRA auditor. With over 200 small business audits under their belt, they can ensure your business is well-represented during a CRA audit.
The Price Tag for CRA Audit Assistance
Getting help during a CRA audit can be expensive, sometimes costing between $10,000 and $50,000. However, the cost of getting professional help is often less than the fines that could come from a CRA audit.
Extra Services from Dexado Accounting and Tax
Besides CRA audit assistance, Dexado Accounting and Tax Small Business Tax Accounting, Cloud Accounting and Bookkeeping, Tax Preparation, Tax Planning, CRA Audit Protection, Accounting Apps, Filing VDP Returns, and Custom Reporting. These unique, year-round services focus on spotting risks and preventing tax issues. By understanding how the CRA operates, and by staying on top of potential tax problems, small business owners can reduce their chance of being audited and lessen the effects of a potential audit.
To wrap up, it’s hard to tell what the future holds for CRA audits of small businesses. But, one thing is sure – small business owners need to be ready. By understanding why the CRA picks businesses for audits, and by having the right representation during a CRA audit, you can decrease the chance of being audited and keep your financial records in check. With Dexado Accounting and Tax by your side, you can be sure that you’re getting the best representation and advice.
