Keep Your Business and Personal Finances Separate
It is an easy trap to fall into when you are in a self employed situation to mix your personal finances with your business finances. While this may seem like an innocent thing to do and means a lot less bookkeeping, it can also be a very dangerous situation to be in financially. To begin with when it comes to Canada taxes the CRA expects you to keep good bookkeeping records for your business entity. It doesn’t matter whether it is a large corporation, sole proprietorship, or just the fact that you are self employed. As such, these financial records should not include your personal financial dealings.