Your Audit Shield.
Defensible Books by Design.
"Don't just keep books—build a fortress of evidence."
Audit Readiness
"The power to audit is the power to destroy." – Expert perspective on maintaining a defensible business.
The Auditor's Perspective
What is "Audit Ready"?
Firmly rooted in your legal obligations under the ITA and ETA.
"Audit readiness is not a seasonal event; it is a daily practice. Auditors are not your friend; they audit for the purpose of finding revenue."
While there is no single legal definition, the concept is derived from your obligation to maintain adequate books and records. Audits are costly in lost time, productivity, and potential fines. They can last for years and damage employee morale if an auditor is forced to take up space in your office.
In the absence of good records, the Agency can perform a Net Worth Assessment. You will owe the assessed amount unless you fight it via a Notice of Objection or in Tax Court.
You must decide your single "Source of Truth": paper or digital. BKS is designed for businesses that choose digital records as an audit defense.
Reconciled Accounts
Monthly reconciliation of all bank and credit card accounts (including personal ones used for business) ensures your ledger matches reality.
Complete Evidence
A digital "paper trail" for every transaction—invoices, receipts, contracts, and approvals—organized for instant retrieval.
Current Financials
Regular maintenance of balance sheets and income statements, categorized by CRA line numbers, eliminates year-end scrambling.
The Auditor's Checklist
Commonly requested documents and areas of investigation.
Areas of Focus
- Income Verification: Comparing bank deposits against invoices and sales records.
- Personal vs. Business: Scrutinizing non-deductible expenses like food, personal travel, or personal vehicle use.
- Cash Integrity: Ensuring cash transactions align with industry norms.
- Detailed Logs: Reviewing travel vehicle logbooks and detailed payroll records.