How Do CGAs Help Businesses Prepare for a CRA Audit?

If your business is being audited by the CRA, working with a CGA can ensure that you are prepared and have all the necessary documentation. CGAs help you to understand the audit process, effectively organize financial documents, and represent your business.

There are multiple reasons why businesses are audited. The most common reasons for an audit are:

• Unreported or underreported income
• Incorrectly reporting expenses
• Failing to file tax returns

No matter the size of your business, audits are stressful and complex. Here are a few ways a CGA can make the process more manageable.

1 - Document Organization

If your business is selected for an audit, the first step is to gather all of the relevant financial documentation. The documentation may include bank statements, invoices, receipts, and tax returns. The CRA will ask for specific documents during an audit process, so it is critical to be organized.

The auditor will then review your documentation and may ask you questions about specific items. You must be honest and truthful during the audit process. You may be subject to additional penalties if the auditor finds discrepancies in your documentation.

2 - Experience & Guidance

If it is your first time being audited, you will likely have many questions and feel overwhelmed. A CGA can provide much-needed guidance and support throughout the entire process. They will answer any questions you have, help you to prepare all of the necessary documentation, and give you an idea of what to expect.

A CGA has experience dealing with audits and knows what the CRA requires. The guidance of a CGA will make the process easier.

3 - Ensuring Accuracy

A CGA can ensure all of your financial documentation is accurate. They will review everything with a fine-tooth comb and look for any discrepancies. If they find any mistakes, they will work with you to correct them before the audit.

An audit process can be confusing and intimidating. Working with a CGA is the best way to manage the entire process and professionally represent your business.

Our team at HWGCA will ensure that you are treated fairly and answer any questions the auditor may have. Contact us today to schedule a consultation. We will help to make the audit process as stress-free as possible.

Located in Surrey (Cloverdale), British Columbia, since 1971, HWG, Chartered Professional Accountants proudly helps clients throughout the Lower Mainland and across Canada.

Our team of chartered professional accountants provides helpful business and personal tax services. Our continued growth proves the success of our client relationships.