When receiving invoices from your suppliers, there are key items that you need to look for.
- Is the supplier’s name listed in full and complete with address, and telephone number. The contact information is important. In case there is a dispute you are able to contact the supplier.
- Is the Date on the invoice? This is important to ensure that invoices are accurately recorded on the date the expense occurred. The expenses are recorded following the matching principle of Accural Accounting. This means that expenses are recognized when they occur, not when paid.
- If they are charging HST, your supplier MUST have their HST number on the invoice. If you suspect the number may be wrong, you can call Revenue Canada to confirm the number. CRA cannot tell you what your supplier’s HST number is, but they can confirm if the number provided is right or wrong.