As a small business owner in Plantagenet, Bourget, or nearby towns, the thought of a CRA audit can be stressful. Over the years, I’ve helped many local entrepreneurs stay compliant and avoid unnecessary red flags. One thing I’ve noticed is that certain bookkeeping habits make businesses more likely to attract CRA attention — sometimes without even realizing it.
Here are the top five signs your bookkeeping could trigger a CRA audit, and what you can do about it.
1. Inconsistent or Missing Records
If your receipts, invoices, and bank statements are incomplete or disorganized, it raises a red flag. I’ve seen Plantagenet business owners get caught simply because their records didn’t match their tax filings.
Tip: Keep every transaction documented and reconciled monthly. I help businesses set up systems so nothing gets lost.
2. Large Year-to-Year Income Fluctuations
Sudden spikes or drops in revenue can draw CRA attention, even if they’re legitimate. Whether it’s a big client, seasonal business, or one-time sale, large fluctuations need to be clearly documented.
Tip: Maintain detailed notes explaining unusual income or expenses. I show business owners how to prepare a paper trail auditors will respect.
3. Excessive Deductions Without Support
Claiming business expenses is normal, but claiming unusually high deductions without receipts or justification is a red flag. The CRA looks for patterns that don’t match industry norms.
Tip: Keep receipts and detailed logs for every deduction. I work with Plantagenet business owners to ensure all deductions are legitimate and well-documented.
4. Mixing Personal and Business Finances
Using personal accounts for business expenses (or vice versa) is a common mistake I see with local entrepreneurs. This not only complicates bookkeeping but also makes it harder to defend deductions during an audit.
Tip: Open separate accounts and credit cards for business use only. I can help reconcile accounts so everything is clearly separated.
5. Late or Inaccurate Filings
Late tax filings, missing payroll remittances, or incorrect HST/GST submissions are almost guaranteed to attract CRA scrutiny. Even small errors can trigger a review.
Tip: Stay organized and file on time, every time. I help business owners in Plantagenet keep up with deadlines and maintain accurate, compliant records.
How I Help Plantagenet Businesses Avoid CRA Red Flags
Being a local bookkeeper means I understand the unique challenges businesses face in Plantagenet and surrounding areas. I don’t just record transactions — I provide advice, systems, and strategies that reduce audit risk, save time, and keep you focused on growing your business.
Stay Audit-Proof and Stress-Free
Don’t wait until the CRA shows up to realize your bookkeeping isn’t ready. I can help you get organized, compliant, and confident in your records — and prevent those costly mistakes before they happen.
