Tax, GST/HST and PST reconciliation

If you're in business for yourself, there are reconciliations, and not just bank reconciliations!

If you're re-assessed for prior period GST/HST, or income tax, or PST, it's necessary to go back and reconcile those periods, and to make adjustments to those years expenses or income depending on the adjustments required by the assessing agency, be it CRA or Provincial tax auditors, or WCB for that matter.

Those adjustments may affect the income for that period. That may require a tax adjustment for that period as well.

There's a free spreadsheet you can download from my website to help with reconciliation between what was recorded by the agency (what you filed, or what they adjusted it to) and what's on your books.

Until they agree, you aren't finished accounting. I know this is time consuming and you probably can't believe you can't just ignore this step, but hey, there's a reason we went to school for years at night, and why we get paid for our expertise.

Reconcile it yourself, hire a bookkeeper to do the reconciliation and insist they do it, or your accountant will need to figure it out when you bring in your books.

Here's the free spreadsheet:

http://www.taxdetective.ca/catalog/item/8328953/8674760.htm