In order to prepare your corporate taxes, we will need to prepare financial statements so we can assign GIFI codes. Financial statements are set of reports that provides information about the financial health of a business. The GIFI codes identify items or accounts that are usually found on a corporation’s financial statement (balance sheets, income statements, and statements of retained earnings). Each account is assigned its own unique code. This allows Canada Revenue Agency to collect financial statement information in a standardized format. For example, the item “Cash” is assigned code 1001 and “Office expenses” is assigned code 8810. All of your accounts must fit these codes. We will do the coding for you, but we will require to prepare your business activity into accounts to prepare the financial statements and; then, code them to efile your taxes.
The following list contains some typically used accounts appearing in an income statement. An income statement, or also known as Profit & Loss, is the most familiar of the financial statements since it mostly details all the income and the expenses related to that income for a PERIOD of time. Typically, it must state a period of time (i.e. fiscal year 2013, Jan-Dec 2014, Feb 2014, etc). Although you are not limited to using only these accounts (and; thus, codes), these are the most common. For a complete list of GIFI codes, refer to Appendix A of Guide RC4088.
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The following list contains some typically used accounts used to create a balance sheet. A balance sheet is “a day in the life” of the business, an instant picture of the business. Thus, a balance sheet must be accompanied by an specific date (i.e. Dec 31, 2013). It lists what the company owns, owes and the difference (equity). Same as in the case of the income statement, you are not limited to using only these accounts (and; thus, codes); however, these are the most common. For a complete list of GIFI codes, refer to Appendix A of Guide RC4088.
These headings are here to help you organize your information, however, we are here to help you to file your corporate taxes and will be glad to assist you in every step of the process. Contact us through our contact form.