What is the General Index of Financial Information (GIFI)? Put simply, it classifies financial line items according to four-digit codes, which helps organize and identify information on financial statements. GIFI codes pair with your chart of accounts, which is a list of your accounts, including business revenue and accounts receivable. All your clients, unless they’re insurance companies, must use the GIFI classification index when filing the T2 or T5013 forms. Accounting software, such as QuickBooks Online Accountant makes it easier to match your chart of accounts to their respective GIFI codes.
Benefits of Utilizing the GIFI
The GIFI offers many benefits, including:
- The ability to file financial information without submitting original documents (unless directly requested by the Canada Revenue Agency (CRA).
- Easier to verify balances.
- Reduces the possibility of a CRA business audit caused by reporting errors.
- Proper using the GIFI codes guarantees compliance with tax regulations.
How to Use GIFI Codes with QuickBooks Online Accountant
The GIFI compatibility incorporated into QuickBooks Online Accountant makes it simple for you to edit GIFI codes that are already mapped for your account balances or to assign GIFI codes for non-mapped account balances.
How to Use a Workpapers GIFI File
To begin, you can open QuickBooks and navigate to the Workpapers section for your client’s books. Check the Working Trial Balance and the GIFI Mapping to ensure that you’ve completed all work. If you see unassigned codes here, you can add them in the GIFI mapping section.
To assign GIFI codes, navigate through the list, then click on Assign GIFI Codes. You’ll see a row under the line you want to map, then you can select the appropriate GIFI code from the list. Next, look at the top-right corner of the screen and click Save GIFI Code. This saves your information in a GIFI file format. Next, open the Tax Return tab in the left navigation area, and create a new tax return so that you can import the GIFI codes. Finally, jump to Begin the Return.
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