What records should a Canadian musician prepare for an accountant?
Published · Updated · Clef
Prepare a clear set of income records, expense documents, equipment records, and bookkeeping summaries for the period your accountant requests. Keep original supporting files alongside the summaries, and list unresolved items separately. The goal is a reviewable handoff that shows where each figure came from, rather than a folder of unexplained totals.
Which business and period does this package cover?
This checklist is for a self-employed musician operating as a sole proprietor in Canada. Confirm the business name, the period being reviewed, and the records your accountant wants before collecting files. If you operate through a corporation, ask for the corporation-specific handoff requirements instead of assuming this list is a complete filing package. Track depreciation schedules for capital music equipment and maintain a clean business vehicle log.
Put a short cover note at the front: who prepared the package, the dates covered, which accounts are included, and when the books were last updated. If you have more than one business, identify which records belong to each. Tell the reviewer about missing periods or accounts at the start.
How should you organise income evidence?
CRA’s business-records guidance for sole proprietors and partnerships says income records must identify the date, amount, and source, supported by original documents such as invoices, contracts, and deposit slips. For music work, gather the documents behind session fees, performance payments, and distributor income rather than presenting only a bank total.
Group the evidence by source, then connect it to the bookkeeping entry or a clearly named working note. Keep client invoices and distributor payout records identifiable as separate streams. If an earnings statement and a bank deposit differ, use a reconciliation note; the related Clef royalty-payout guide explains that comparison without changing the original statement.
What should accompany expense and equipment records?
Collect the receipt or other supporting document for each business purchase. CRA’s guidance calls for purchase details including the date, the parties involved, and a description of the goods or services. Add an explanatory note where a short merchant label does not make the purpose clear, and flag personal or mixed-use questions for your accountant.
Keep a separate equipment list with the purchase or disposal document attached. CRA’s property-records guidance asks for information such as acquisition cost and date, the seller, and sale or trade-in details. Supply that evidence without deciding that every instrument, computer, or studio purchase should receive the same tax treatment.
Which Clef report settings should you check?
Clef’s Reports page offers four views: Profit & Loss, Balance Sheet, Revenue by Brand, and Trial Balance. Ask which views your accountant needs. These are summaries drawn from the journal entries in the workspace; treat them as a way to review the books, not as proof that all source documents or adjustments are present.
Check the date controls before producing the handoff copy. Profit & Loss and Revenue by Brand receive a start and end date, while Balance Sheet and Trial Balance use the selected end date. Make the period or reporting date explicit in your cover note so a reviewer does not mistake a current-month view for a year-end summary.
The Reports page’s Download PDF control opens the browser’s print workflow. Review the selected report and print destination, and save a PDF if that destination is available. This produces a readable report copy; it does not promise a complete accounting-data export or replace the original files your accountant may request.
What would a simple handoff folder look like?
Constructed example: a performer who also does studio sessions prepares a cover note and four folders named Income, Expenses, Equipment, and Questions. Income separates client invoices from distributor records. Expenses groups the supporting purchase documents. Equipment pairs the asset list with acquisition and disposal evidence. Questions contains a short numbered list of gaps and decisions for review.
Each question points to a document or entry: a missing receipt, an unidentified deposit, an unpaid client invoice, or an unclear business-use split. Mark whether supporting evidence has been requested and from whom. This is an organisational example, not a mandated CRA folder structure or a completed tax-return checklist.
Keep filenames descriptive enough to find a document again, and put revised working notes in a dated version rather than silently replacing the original evidence. When the reviewer asks about an item, update the question list with the answer and where the supporting record can be found.
How should you preserve the records after sending the package?
Use the delivery method agreed with your accountant, check the intended recipient, and confirm the package can be opened. Keep your own copy of what was sent and the date of the handoff. A shared link or email attachment is a delivery mechanism, not a substitute for maintaining your records.
CRA’s electronic-records guidance says records originally produced electronically must remain electronically readable even when paper copies exist. It also recommends backups and checking that backup data can be restored in a usable form. Keep native files available alongside report PDFs, and confirm the applicable retention and imaging requirements before deleting originals.
What else should I know?
Are bank statements enough on their own?
A bank statement is useful evidence of money moving, but a merchant name or deposit label may not explain the underlying transaction. Include the relevant invoice, receipt, contract, or other supporting document where it is needed to understand the entry.
What should I do with invoices that remain unpaid?
Identify them separately and tell your accountant their status at the review date. Do not mark an invoice paid simply to make a list look complete, or assume this checklist determines how the amount belongs on a tax return.
Should I resolve every uncertain category before the handoff?
Separate what is supported from what still needs a decision. A short, specific question with its evidence is more reviewable than an unexplained classification chosen only to clear a queue.
Does sending the package mean the books are final?
Agree who will record any resulting adjustments and how the updated records will be returned. Keep the submitted version identifiable so you can distinguish the review package from the books after accountant changes.