Learn what banking information you need to have on hand when you’re filing your taxes. Find out where to find transit and institution numbers, and why you need them.
Your banking information will help you stay organized while you submit your taxes. It is important to have an understanding of certain financial numbers, so you know what they are, why you need them, and when to use them.
A transit number is a series of five numbers that identifies your specific bank branch. The five-digit code is the first series of numbers listed along the bottom of a cheque. The transit number typically sits near the three-digit financial institution number and your 12-digit account number. Sometimes banks display an institution number and transit number as a routing number on your cheque.
A financial institution number is a unique identifier assigned to each specific bank or financial institution. This number, used during interbank transactions, is sometimes a piece of the routing transit number to identify the institution, branch location, and customer account. Most FINs are three digits in length; however, the placement within the routing number varies between countries.
In Canada, the FIN is reported in the routing number after the check number and branch identification number. It is used to simplify and expedite transaction processing. In communicating this information to another bank, the appropriate banking transaction entry is easier to complete with higher accuracy.
In the bottom-left corner of a paper cheque is a series of five numbers followed by three numbers, usually separated by a colon. The five digits to the left of the colon represent your transit number.
For example, if the numbers 12345 : 678 appear on your cheque, the numbers 12345 are the transit number.
You can also log in to your bank account information online to see this information, or you can request the number from your bank.
Knowing your bank account numbers makes it easier to receive payments in your business account, such as through QuickBooks Online’s payment system. All you do is connect your bank account to QuickBooks’ software, send an invoice to a customer, accept online payments, and then transfer the payment to your bank account once you receive it. You also need to know your transit number to send or receive e-cheques.
In addition, to wire a tax payment to the Canada Revenue Agency, small business owners need to know:
You also need to provide the CRA with this information to have a refund directly deposited into your bank account.
QuickBooks Online can help you maximize your tax deductions. Keep more of what you earn today.
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