What You Need to Know About 2019 Canadian Tax Brackets

Are you familiar with the tax brackets for 2019? The new tax brackets provide better rates for most people compared to the current 2018 numbers. Taxes in 2019 decline in all brackets while the percentages stay the same. Due to the thresholds increasing, the tax burden is less for your self-employed business. The opportunity here […]

How to Write Off QuickBooks Self-Employed

If you’re self-employed, you likely know a critical way to maximize your deductions is to claim your business expenses. However, did you know you could be missing out on major tax deductions? Without a smart expense management system, you could be leaving money on the table. On average, QuickBooks users saved $19,290 in deductions per […]

Self-Employment & Small Business Tax Guide

How to File Taxes for a Small Business Navigating the Canadian tax world can be complicated. This is why we created a master resource to address all of your tax questions. From the fundamentals of filing taxes to the tax nuances between provinces, you can find your answers here. We are committed to helping small [...]

Tax Savings Small Businesses Can’t Afford to Miss

When you run a small business, every penny counts. Your budget involves more than just sales, expenses, and profits — the way you file your taxes also has a big impact. That’s where tax savings for small business come in. By maximizing deductions and managing your income, you can lower self-employment taxes and pay less […]

How to File Self-Employed Taxes

When you’re self-employed, you have different tax responsibilities than a traditional employee. Essentially, the Canada Revenue Agency (CRA) considers you to be a small-business owner, and as such, you need to withhold your own payroll taxes and meet key tax filing obligations. Don’t worry: The process may be easier than you think. Read our guide […]

Everything You Need to Know About Business Sales Tax

What Are Sales Taxes? What Sales Taxes Currently Exist in Canada? Do all small businesses charge GST or HST to their customers? Must all businesses become registrants? But if all businesses charge tax to all other businesses, isn’t tax being charged over and over again on the same product or service? How to Track Sales [...]

Importers and Exporters: How to Use Trade Incentive Programs

Learn more about deferring or eliminating your taxes and duties payments on items your company imports using one of the programs offered by the Canada Border Services Agency. Eliminating or deferring tax payments lowers your overall cost, which could help you lower your prices.

Small Business Tax Guide: Tourism Business

Learn about the Foreign Convention and Tour Incentive Program, the rebate on GST/HST taxes paid on tour packages sold by travel professionals. Find out how to determine eligibility, and discover how eligible travel businesses can calculate the amount of their rebate.

Small Business Deductions: Duty Deferral Program

Lower your tax burden if you import goods into Canada and meet a few conditions with the Duty Deferral Program. Learn about the three ways that the program can potentially help you save on duties owed and even get reimbursed for duties paid.

Don’t Forget These Tax Deductions for Your AirBnB or Other Short-Term Rental

Minimize your taxes on your short-term rental income by claiming all of the deductions available to you and reducing your taxable income. Understand the tax treatment of your AirBnB income.

What Is “Payment In Lieu of Taxes”?

Learn the meaning of the expression “payment in lieu of taxes” and its historical and practical significance. See who can receive these payments and how to apply for them.

What Is a Fiscal Pardon?

Learn what a fiscal pardon is and how it helps people and small businesses with back taxes to report them. Also, find out about the Voluntary Disclosure Program and the risks of using a tax accountant to apply for a fiscal pardon.

Will Your B.C. Small Business Be Exempt From the New Employer’s Health Tax?

Look at British Columbia’s Employer Health Tax effective in January 2019. Find out whether this tax affects your business, and learn how to calculate your tax liability. See how this tax indirectly benefits your employees, and discover when the government plans to eliminate Medical Services Plan premiums.

Should There Be a Robot Tax?

Grow your sales by using automation software. As the use of artificial intelligence and automation grows, employees are being replaced. People like Bill Gates think the answer to the increase in robots is a robot tax. Others think a robot tax hurts innovation.

What is “NOPAT”?

Show investors, debt holders, and other stakeholders that you are business-savvy by knowing your company’s net operating profit after tax. Learn why NOPAT is important and the basics of how it is calculated.

Taxes and Tips for Personal Trainers

Learn about all the most common personal trainer deductions that could come in handy at tax time. When you know what you can deduct, you avoid paying more than necessary on your income taxes.

Will the CRA Change Rules for Political Activities by Charities?

Political activism by Canadian charities has been a hot-button issue since at least 2012, when the Canadian government launched five dozen audits of active charities. Allocations totaling $13 billion were then put into place to improve transparency and educate charities about restrictions on political action. The audits and funding were billed as a late development […]

How to Deal With Outstanding Invoices During Changes to Sales Tax Rates

Obviously, the hope is that your clients pay their debts on time and that you don’t reach the stage where you need to send outstanding invoices. That said, it’s your responsibility to follow up on unpaid invoices. The customer is responsible for the amount due on an outstanding invoice, as well as new charges on […]

Tax Implications of Small Business Donations to Charity

Learn about the implications of donating to charity through a business, and see whether it makes more financial sense to donate from a business or from a personal account. Review some simple examples of each.

What Is the Difference Between Marginal Income and Marginal Income Tax?

Marginal income and marginal income tax sound similar, but they refer to vastly different concepts. If you run a business, you should understand the basic differences between these two terms. Manufacturing and production businesses, in particular, need to understand what marginal income means. Marginal Income Marginal income refers to the difference between sales revenue and […]

Tax Accounting Methods: Cash v. Accrual

In Canada, small business owners can use two different primary tax accounting methods, the cash method or the accrual method. Although you can choose whichever method you prefer, you may find that one works better than the other for your company. Larger companies don’t have a choice in the matter and must use the accrual […]

Dealing With Capital Gains Tax When Selling Your Business

If you sell your business, you may receive capital gains from the sale. Capital gains occur when you make a profit from an investment. By law, you have to report these gains on your annual tax return. Luckily, you may be able to claim deductions, or reductions in the amount of taxable income, on some […]

What Are Accruals?

For most small-business owners and independent contractors, the Canada Revenue Agency requires you to report accruals when you file your taxes, so it’s important to understand how to handle them. [Self-employed commission sales agents, farmers, and fishermen can use either [the cash or accrual method](https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/business-income-tax-reporting/accounting-your-earnings.html#ccrlmthd), but you need to use the accrual-based accounting method if […]

What Is a Small to Medium-Sized Enterprise (SME) in Canada?

Small and medium-sized businesses have different definitions all over the world. In Canada, the following definitions apply: Small business: A company with at least five paid employees, but fewer than 100 paid employees. Medium-sized business: A company with at least 100 paid employees, but fewer than 500 paid employees. It is estimated that approximately 98 [...]

Understanding the First-Time Donor Super Credit for Charitable Donations

Canadians are generous with their charitable giving. One reason is that Canadian tax laws grant people who donate to charity generous tax credits for their donations. One particular credit, called the first-time donor super credit (FDSC), is an extra enticement for first-time donors or those who haven’t donated to charity in a while. Under the […]

Small Business Deductions: Deducting Meals, Entertainment, Parties, Leisure Activities and the Insurance that Protects Your Interests

Are you looking for tax deductions for your small business? Some tax-deductible expenses are all too easy to overlook: meals, entertainment, leisure activities and insurance, which is something you have to purchase anyway. Fortunately, you can write off many of this expenses to save some dollars on your tax bill Meal and Entertainment Expenses With […]

How to Deduct Meals and Food

Learn how if you’re burning calories as a bicycle courier, the Canada Revenue Agency offers an extra deduction for your food costs.

How to Deduct the Investment Tax Credit

Looking for ways to lower your tax liability? See if you qualify for the diverse investment tax credit. Both individuals and corporations may qualify.

Amending Your Tax Forms and Adjusting Financial Statements

Made a mistake on your tax return? Get an overview of the steps to amend your personal, business, and corporate tax returns.

Small Business Deductions: Scientific Research and Experimental Development (SR&ED) Tax Credit

Read about the Scientific Research and Experimental Development program. Learn how eligible expenses can lower taxable income and earn you a tax credit.

What Is a Business Number?

What is a business number? Read about this nine-digit number used when communicating with the Canada Revenue Agency about your business.

Small Business Deductions – Allowable Business Investment Loss

What are allowable business investment losses? Learn how ABILs help lower taxable personal and business income.

Registering for the GST/HST: Claim the Input Tax Credit for Inventory on Hand

Learn how to claim an input tax credit for inventory on hand when you register your business for the GST/HST

Making Rental Payments to Employees Who Use Their Own Tools

Remember to apply the rental payments you’ve made to your employees for using their own tools on your T4 form at tax time. Here’s how to do it.

How to Avoid Paying GST on the Acquisition of a Business

Learn the legal way to avoid paying the GST/HST when purchasing a business by making a joint election with the seller.

9 Tips for Filling out the T4

Check out these tips on dealing with union dues. Learn when dues are deductible, and review the rules on paying dues for your employees.

What is an Operating Lease vs. a Capital Lease?

Learn what an operating lease is, how it differs from a capital lease, and how to treat each lease for accounting and tax purposes.

How to File T2125

Learn the rules surrounding the reporting of inventory in your statement of business income for a sole proprietor or a partnership.

New Developments in Taxation for Corporations in Alberta

Read about updates to Alberta’s corporate income tax rules. Look at the low rate for small businesses, and learn about provincial credits.

Using Form RC4288 to Request Relief From Penalties and Interest

Check out how to request relief on tax penalties and interest. Review situations where the Canada Revenue Agency grants waivers on interest and penalties.

Quebec Tax Guide: Tips and Gratuities

Familiarize yourself with the three categories of tips and gratuities, their tax implications and Quebec’s unique requirement for declaring tips.

Small Businesses Tax Credits in Ontario

Check out tax credits for small businesses and corporations in Ontario. Review credits to offset costs of training workers, producing books and films, and more.

Switching Personal Assets to Business Assets: A Guide for the Self-Employed

Want to use personal assets for work? If you’re self-employed, you can claim a business deduction. Check out the process and how to calculate your deduction.

Tax Tips for the Self-Employed Hairdresser or Stylist

Are you an independent hair stylist or barber? The Canada Revenue Agency has special rules just for you. Check out what you need to know about taxes here.

Small Business Deductions: What Applies and Do I Qualify?

Filing taxes for your corporation? Don’t forget to claim the small business tax deduction. This deduction helps lower federal and provincial corporate tax.

How to Calculate Payroll Taxes

Learn how to use the Canada Revenue Agency’s Payroll Deductions Online Calculator to avoid mistakes when calculating employee pay deductions.

How to Calculate Taxable Automobile Benefits for Your Employees

Check out the Canada Revenue Agency’s free Automobile Benefits Online Calculator, and learn how it can determine employees’ vehicle benefits by pay period.

How to Contact the Canada Revenue Agency and Request Help

Learn about the features and functionalities of the Canada Revenue Agency’s My Business Account online portal.

What Are Provincial and Territorial Corporate Tax Rates?

What is provincial or territorial corporate tax? Do you qualify for the low or high rate? Take a closer look at the details of provincial and territorial tax.

What Is a Corporation Key?

Learn about the corporation key and how it can be used with a corporation number to gain access to online transactions at the Canada Revenue Agency.

What Is a Standby Charge?

Compare the benefits of providing a company automobile with the cost of having employees use their own cars for business, and determine the best option.

What is Adjusted Cost Basis (ACB)?

Learn what adjusted cost basis (ACB) is, see how to calculate it, and learn why it can have an impact on your business.

What Is an Inclusion Rate?

Review the definition of inclusion rates. Learn how inclusion rates apply to capital gains and losses.

How to File T4, T4A, and T4A-NR Slips

What is a T4A slip? What is the difference between a T4A and a T4A-NR slip? Review the definition of these slips and employers’ obligations.

What You Need to Know About the Small Business Job Credit

Learn how the Small Business Job Credit affects your clients and why timely T4 filing and proper SBJC tax treatment assures optimum tax benefits and compliance.

Who Needs to File A Tax Return?

Learn the rules, dates and pitfalls surrounding the filing of a tax return in Canada for individuals, corporations and partnerships.

Is it Deductible? 7 Items You Can’t Claim as Business Expenses

Check out this list of items that are often mistakenly claimed as business deductions. Audit-proof your return by not claiming these costs erroneously.

The Difference Between a Charity and Nonprofit in Canada

Help nonprofit or charitable organizations understand how Canadian tax laws affect their operation and relationship with donors.

Taxes and Tips for Manufacturers

Learn about the accelerated capital cost allowance and how Canadian manufacturers can use it to save on investments in machinery and equipment assets.

Understanding Different Tax Rates: Marginal vs. Effective

Understand the difference between marginal and effective tax rates, and learn how this distinction can help with business planning.

Double Taxation: What It Is and What to Do About It

Avoid international double taxation with help from the Canadian Competent Authority and lower your tax rate with the Small Business APA Program.

Taxes and Tips for Landlords and Property Owners

Check out these five often-overlooked write-offs for legal fees and other expenses to help landlords save money at tax time.

Quebec Health Services Fund (QHSF) Rate Reduction

Discover the rate reduction for the Quebec Health Services Fund. These changes will make small and medium-sized businesses more competitive.

Taxes and Tips for Day Care Providers

Review important deductions for day care providers, and make sure that you are maximizing your deductions.

CRA Tax Relief and Tips for Farmers

Forced to sell livestock due to flooding or droughts? Check out the Canada Revenue Agency’s income deferral program for these situations.

How to Calculate Capital Cost Allowance on Form T2125

Did you make big purchases for your business during the year? Check out the steps for claiming a portion of those capital expenses on your tax return.

How to Make Payments to the CRA

Need to pay tax to the Canada Revenue Agency? Simplify the process, and pay multiple taxes at once with My Payment. Here’s an overview of how the program works.

Tax Reduction Tips for House Cleaners

Independent cleaners can write off the cost of cleaning supplies and buckets, but that’s not all. Check out these tips for saving money at tax time.

Tax Implications of Incorporating Your Small Business

Learn about some important tax consequences when you’re incorporating a small business that was previously operated as a sole proprietorship.

Benefits of Using the General Index of Financial Information

File your corporate taxes using the General Index of Financial Information to comply with Canadian regulations and streamline your paper or electronic filing.

Using the CRA’s New LOI and LOAR Programs to Assist Your Clients

Learn how your clients can take advantage of the LOI and LOAR programs to avoid common taxpayer mistakes and measure their business performance.

What Is a Refundable Tax Credit?

Reduce your tax bill or get a refund when you claim refundable tax credits such as the Working Income Tax Benefit or Eligible Educator School Supply Tax Credit.

How to Deduct Loan Interest

Claim deductions from business interest on loans to reduce your tax burden. Understand which payments qualify before you file.

Appealing an Assessment Before the Tax Court of Canada

Learn how to file an appeal in the Tax Court of Canada and what the filing delays are. Learn the difference between the informal and general procedures.

Tax Tips for Consultants and Independent Contractors

Learn about how personal service businesses, incorporated employees and the small business deduction are interdependent.

Know the Penalties for Not Paying Taxes on Time

Review the penalties for filing your tax return late. Figure out what to do if you’re missing some of the forms you need to file.

The Small Business Owners Guide to Provincial Sales Tax (PST, GST, HST)

Learn the basic rules for collecting GST/HST when selling goods or services to clients outside Canada.

How to and When to Change Your Reporting Period

Learn when you’re required to change your GST/HST reporting period, when you can change your reporting period voluntarily, and how to do it.

What Are the Changes to Taxes in 2019?

Wondering what’s happening with the tax code? Use these tips to stay current so you can avoid surprises at tax time.

Understanding Taxes for Artists and Performers

Learn the special tax rules that apply to self-employed and salaried artists and performers in Canada.

How to Take Dog Tax Deductions in Canada

Learn when dog-related expenses are deductible. Identify the difference between medical write offs for service dogs and business deductions for working dogs.

Deducting Miles & Student Loans

Don’t miss out on your mileage deduction. Uber drivers, learn how to track mileage with a log book or an app.

Your Master Guide to Tax Years, Important Deadlines and Payment Info

Learn the difference between a calendar year and a tax year. See how businesses can change their fiscal year-end.

Little-Known CRA Tax Deductions and Credits

Review some of the lesser-known deductions and tax credits for small business owners in Canada. Learn about credits for apprentices, film making, and more.

Understanding Tax Obligations for Your Holiday Rental Property

Check out your tax obligations when you rent out a property on AirBnB, VRBO or a similar site. Review the basics of rental income and expenses.

What is An Audit and How Does It Work?

Discover when the Canada Revenue Agency may audit a business and what is likely to occur during an audit of a business.

Claiming the Lifetime Capital Gains Exemption

Learn how small business corporations can qualify for and claim the lifetime capital gains deduction under the Canada Revenue Agency rules.

What Is an Excise Duty?

Find out what an excise tax is and how a high excise duty may affect businesses that produce certain products.

What Is a Deferred Tax?

Deferred taxes are current tax payments that you push into the future, often via an investment or retirement account. Like deferred expenses, tax deferrals in Canada have two primary advantages: Due to inflation, a dollar today is worth more than a dollar tomorrow, so it’s better to pay in the future. Instead of being controlled […]

Tax Loopholes for Small Business Owners to Use Today

When you’re looking for ways to keep more money in your pocket, cutting your tax bill might be high on your list. Canadian tax loopholes still exist and are legal, although the Canada Revenue Agency (CRA) watches for suspicious activity. If you follow the rules and work closely with a good accountant, you can take […]

Capital Cost Allowance Deduction: What Is the CCA Deduction and Can I Claim it?

When your small business owns assets, you can’t claim their costs all at once. Instead, the Canada Revenue Agency (CRA) allows your company to take a yearly deduction for assets that depreciate over time. The CRA calls this deduction the capital cost allowance (CCA). Instead of taking the full expense in the year you purchase […]

Maximize Write-Offs When Attending a Convention

Conventions can be great places to generate ideas, learn about trends, network with other professionals, and promote your business. The Canada Revenue Agency (CRA) allows you to claim travel expenses as business deductions, but the agency has special rules for conventions. If you want to enjoy the benefits of conventions and maximize potential write-offs, it’s […]

Preparing a Successful Notice of Objection

Following an audit by the Canada Revenue Agency (CRA), you may receive a notice of assessment that you dispute. If you want to challenge the auditor’s findings, your first step is to file a Notice of Objection. Here is what you need to know to give yourself the best chance at a successful outcome. When […]

Tracking Startup Costs for Tax Deductions

Ready to launch your business? Don’t shove those receipts for startup costs in a drawer to be forgotten. The Canada Revenue Agency (CRA) lets you claim startup costs as business expenses, but you need accurate records and proof of the costs. Knowing what you can claim and keeping track of those expenses makes your job […]

What Is a Prepaid Asset?

A prepaid asset is a financial resource available for future use. You realize the benefit of the asset at a later date than you paid for it. You record a prepaid asset on your balance sheet, reducing its value over time while reporting an expense on the balance sheet each time you do. Examples of […]

Small Business Term: What Is a Temporary Layoff?

When an employer halts or reduces an employee’s working hours without terminating his or her employment, the employee is considered to be on a temporary layoff. Just because an employer fails to specify a date of recall when laying off the employee does not necessarily indicate the employee has been terminated. It is important to […]

How to Calculate Net Tax

Your net tax is the amount of sales taxes your business owes to the Canada Revenue Agency (CRA). This tax shows how much you should pay to the CRA over a particular tax period. If you sell taxable goods and services, you may need to remit goods and services tax or harmonized sales tax to […]

How to Document Barter Exchanges to the CRA

Learn how the Canada Revenue Agency treats trade and barter transactions, and review how to report these transaction on your tax return.

How to Estimate Cross-Border Shopping Duty and Excise Taxes

Learn how to calculate import duty and tax rates on goods bought in the United States and brought into Canada.

Treat Digital Currency Payments as a Barter Transaction on Your Taxes

Learn how the Canada Revenue Agency views digital currency, and review tax considerations for using digital currency in business transactions.

Avoid These Red Flags to Prevent a Small Business Audit

At some point in the life of your small business, it’s safe to expect an audit from the Canada Revenue Agency. This is a normal part of the Canadian tax system — as long as you file your taxes diligently, you usually have no reason for concern. That being said, avoiding CRA audits when possible […]

How to Calculate Employee Taxes Using the Bonus Method

Typically, when you pay employees, you withhold taxes from their paycheques. This allows you to keep track of payroll easily, because everyone makes a set amount every pay period throughout the year. This process of tracking a worker’s pay, referred to as the periodic method, is often effective with regards to withholding income taxes. However, […]

How to Adjust Sales Tax Liability in QuickBooks Online

You may have to adjust your sales tax liability for GST/HST, PST, or QST, such as when a customer fails to pay an invoice or you need to get a refund of some of the remitted sales tax. These represent the Goods and Services Tax, Harmonized Sales Tax, Provincial Sales Tax, or Quebec Sales Tax […]

How to Deduct: Technology and Equipment Deductions and Capital Cost Allowance

When you replace or [upgrade your company’s technology](https://quickbooks.intuit.com/ca/resources/technology/when-upgrade-business-technology/), it comes with a cost. The Canadian Revenue Agency (CRA) allows you to claim these costs as deductions on your taxes, which reduces your tax bill. Different technology purchases qualify for different types of deductions. Before you fill out your tax returns, it’s a good idea to […]

How to Record a Sales Tax Expense on Imported Goods in QuickBooks Online

Recording a sales tax expense on imported goods in Canada serves multiple purposes for your business. You keep accurate records for when you remit the GST/HST to the Canada Revenue Agency. You also track a duty expense, or a tax on imported goods, when it applies to certain items you bring in from another country. […]

If You’re Self-Employed, Should You Contribute to an RRSP or Take Dividends?

As a self-employed business owner, you need to plan your own retirement. When the time comes to take accumulated profits out of your company, should you pay yourself dividends, contribute to your registered retirement savings plan, or both? Find out what you need to consider so you can make an informed decision. Tax Advantages of […]

What Is Income Splitting and How Can It Help Lower Your Taxes?

If you own a small business, you may be able to reduce your taxable income through a process known as income splitting. One of the most effective strategies involves the distribution of dividend income to your family members. The Canada Revenue Agency (CRA) doesn’t allow taxpayers to split income with other relatives, but there are […]

How to File Form T2200

Do your employees occasionally work from home, use their personal cars, or otherwise pay for other unreimbursed expenses as part of their job duties? Your employees may be able to deduct those employment expenses. But they can’t claim those expenses as tax deductions unless you, as their employer, complete Form T2200 Declaration of Conditions of […]

Handling the Complexities of the GST/HST’s Place of Supply Rules

When running a small business, you have plenty of rules and regulations to follow, including the taxes you charge to your customers. Even once you figure out which provincial sales tax types apply to your business, you still have to know the ins and outs of each type to charge and remit the tax payments […]

Your Guide to Netfile Requirements

Netfile offers you the time- and cost-saving convenience of filing your taxes with the Canada Revenue Agency (CRA) over the internet. To use the service, you just need to make sure you have Netfile-certified software. Most taxpayers have Netfile eligibility, though there are a few notable exceptions. When Can You Use Netfile? The Netfile system […]

How to Educate Employees About Deductions

If you have employees and you require them to use a home office, buy their own equipment, drive their own car, or incur similar expenses, they may be able to claim a deduction on their annual Canada Revenue Agency (CRA) tax returns. To help your employees, educate them about these deductions and make sure you […]

Small Business Deductions: Apprenticeship Job Creation Tax Credit

Looking to hire new employees? You could catch a tax break while helping an apprentice hone their craft. The Canada Revenue Agency (CRA) offers small business owners the opportunity to earn the Apprenticeship Job Creation Tax Credit. This credit helps cover a portion of the salary you pay to eligible apprentices who work in certain […]

Tax Guide for Manitoba

The acronym PST refers to the provincial equivalents of the goods and services tax. PST stands for provincial sales tax, which is the applicable tax in the provinces that don’t participate in the harmonized sales tax regime but still have provincial taxes. The provinces with PST are British Columbia, Manitoba, and Saskatchewan. On July 1st, […]

Small Business Deductions: Deducting Business Promotion Expenses

Promoting your business is essential if you want to reach new clients and grow your business. The Canada Revenue Agency (CRA) offers you a few deductions that can reduce the costs of advertising, promotional items, entertainment, and even conventions — though some of these expenses aren’t obvious write-offs. Understanding the CRA’s rules and regulations regarding […]

Business Use of Home Deduction: How to Deduct Your Home Office

If you’re self-employed and have a home office, you pay expenses to run and maintain that space each month. You can deduct some of these expenses on your taxes — which means that you can subtract them from your net income on your tax return and reduce the amount of taxes you owe at the […]

How to Deduct Your Business Cell Phone Expenses

The Canada Revenue Agency (CRA) lets small business owners, self-employed individuals, and freelancers deduct business-related cell phone expenses. You can claim up to 100% of your cell phone bill, but only when you use the device solely for business purposes. Calculating Your Cell Phone Bill Tax Deduction When you use a cell phone for both […]

How to Calculate Depreciable Assets

Everything you buy for your business has a cost attached to it, and you can deduct those costs from your taxes. Large items, such as vehicles, buildings, and equipment, are expected to last for years, so when you deduct the purchase cost from your income taxes, you do it over the course of several years. […]

How to Deduct Source Deductions

Source deductions refer to the money you withhold from your employees’ paycheques and remit to the Canada Revenue Agency (CRA). These deductions include Canada Pension Plan (CPP) contributions, Employment Insurance (EI) premiums and income tax. The amount you must remit varies based on how much your employees earn, as well as any deductions for the […]

Tax Guide to Paying Your Family Members

In Canada, your income tax bracket increases with your income. The tax system uses graduated tax brackets so people who earn more money pay more taxes. Because of this, your family pays more income tax as your business income increases. But it’s possible to lower your overall income tax burden by transferring some of your […]

Claiming Life Insurance Exemptions

For years, life insurance has been an integral part of business owners’ tax and financial plans. While these policies help you leave money behind to your heirs, certain policies, called exempt policies, used to have tax advantages over many other types of investments. The rules surrounding the taxation of exempt tax policies remained essentially unchanged […]

What Partnerships Need to Know About Form T5013

Running your business as a partnership lets you share the workload and the profits. But it also means you have to understand and follow the rules on reporting partnership income established by the Canada Revenue Agency (CRA). The rules are surprisingly simple in most cases, but you may have some extra reporting requirements as your […]

Accounting Tips: Import Your Receipts Immediately

Tracking expenses can feel cumbersome. As well, every time you forget to record an expense, you lose a valuable business write-off. To keep your expenses organized, use online accounting applications that allow you to upload your receipts easily and quickly. With apps such as IQBoxy and Nexonia Expenses, you can upload, fax, email, or photograph […]

How Does Old Age Security Clawback Work?

The Canadian government pays you a monthly payment, called the Old Age Security(OAS) pension, if you’re 65 years or older. While you probably include the OAS as a foundational piece of your retirement plan, a certain amount of this payment can be taken back depending on individual income levels. What is the Old Age Security […]

What You Should Know About the Medical Expense Tax Credit

Canada has an excellent healthcare system, even though some medical treatments aren’t free. But here’s good news. When you incur sizable medical expenses from year to year, there’s tax relief available from the Canada Revenue Agency (CRA). It’s called the federal medical expense tax credit, and some provinces have similar tax credits. If you want […]

Keep Separate Bank Accounts for Your Small Business and Personal Life

It’s important to set up separate bank accounts for your business and personal life, and make sure these categories of spending. Having different accounts for each at a bank is either free or extremely inexpensive. Separating business and personal accounts makes accounting and tax issues much simpler. Having separate accounts helps to keep your personal […]

What Is a Transit Number

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 […]

How to File Record of Employment Forms

Service Canada uses a Record of Employment (ROE) form to assess workers’ eligibility for Employment Insurance benefits. As an employer, you should understand the basic form, as well as the use of these documents and your legal obligation to complete them for your employees. When to Issue Record of Employment Forms If an employee has […]

Employer Tax Guide: Employee Tax Implications and What to Know

As a small business owner, you want to provide your employees with a host of benefits that help you hire top talent, but you need to make money. The good news is that many of the benefits you offer employees are deductible on your tax bill. Would you rather give your money to your employees […]

Canadian Charities Donation Tax Receipt Rules

For the most part, charitable organizations survive because of the generous donations they receive. Under Canadian donation tax receipt rules, qualified donees, including Canadian registered charities, can issue tax receipts to donors. These receipts give charities a great fundraising advantage because they let donors receive generous tax credits for their donations, depending on the province […]

Great Tips for Lowering Your Taxes

If you provide employees with an automobile and the employee drives it for personal use, you must report the employee benefit as a standby charge as a form of income for the worker. As the employer, you receive a tax credit for allowing your employee to use the vehicle, but you must report the standby […]

How QuickBooks Helps Your Small Business With Filing Taxes Online

Whether you’re an independent freelancer, the director of a corporation, or somewhere in between, filing your business tax returns online simplifies the process and helps you get it done faster. QuickBooks can help make the process even easier. Accounting software keeps your financial details organized throughout the year, but it also streamlines tax time. The […]

Tax Form T215: Recording Loss of Value on Capital Goods

Could your business benefit from some help with business expenses? Basic Canadian tax rules allow you to deduct capital goods purchased for use in your business from your income. Before you do so, it’s important to determine which purchases are capital goods for the most effective results. Keep these key elements in mind in order […]

The Tax Implications of Hiring Foreign Contractors

In the age of free trade and globalization, even small businesses find themselves dealing with foreign partners for many different types of transactions. If you are a Canadian small business owner and you are thinking about hiring a foreign contractor to perform certain services for you, there are several tax implications involved. Where Will the […]

How Using A Business Expense Tracker Helps When Tax Time Comes Around

Like many business owners, your days are consumed with keeping the revenue flowing in and the bills flowing out. Somewhere in between, it is not uncommon for receipts and invoices to get lost in the shuffle. As a result, tax payments can be miscalculated and you either underestimate what you owe or pay too much. […]

Tax Savings Tips for the End of the Year

As the financial year of your small business winds down, you may find all of your attention turning to strategic planning for the next year, but don’t forget your tax deadlines are also quickly approaching. You want to make strong financial decisions ending the year so you can minimize your tax obligations for the current […]

How to Decide If You Should Voluntarily Register for a GST/HST Account

If you charge customers goods or services in Canada, you need to know about the goods and services tax (GST) and the harmonized sales tax (HST). Your business pays these taxes to your provincial government. If your business offers taxable supplies and makes more than $30,000 in a calendar year, the Canada Revenue Agency requires […]

Best Apps to Help You at Tax Time

If you need a little help pulling together and filing your paperwork when it’s tax time in Canada, selecting a few organizational apps may serve as an effective solution. Technology tools are great for helping busy business owners like you stay organized year-round. Here are several apps that freelancers and small- and medium-size businesses find […]

Record Cash Expenses

Don’t forget to record cash expenses just because these expenses tend to be small; these small amounts add up. When it comes time to filing your taxes, these forgotten expenses could cause you to overstate your income. To record your cash expenses in QuickBooks Online, take the following steps: Click the plus sign at the […]

Taxes and Deductions for Freelancers

Running a small business as a freelancer inevitably brings about its share of expenses. When used properly, the deduction of these expenses can substantially alleviate your tax burden. Understand the basic rules that every freelancer in Canada should know about tax deductions. Business Expenses In Canada, any expense incurred for the purpose of earning income […]

How to File 1099 and Who Needs Them?

When your Canadian business works with American-based freelancers or contractors, you typically need to issue those workers an Internal Revenue Service (IRS) Form 1099-MISC Miscellaneous Income to comply with U.S. law and international agreements. The workers provide all the information you need to complete this form when they fill in and return IRS Form W-9 […]

4 Ways Accounting Software Can Increase Efficiency and Save You Time

Did you know that you can save time and work more efficiently while tracking expenses, issuing invoices, and managing budgets by using cloud-based financial management software? These powerful tools are extremely helpful for small business owners, as they automate many time-consuming accounting tasks. There are at least four ways you can save time by using […]

Tax Time: Checklist for Filing Taxes

As the tax deadline draws near, many small business owners begin to feel overwhelmed and daunted by the prospect of getting all the necessary paperwork together. To help you overcome your tax-filing procrastination, check out this easy-to-follow checklist. As a bonus, learn how low-cost software can make the task quicker and stress-free. Gather all receipts […]

How To File Your Business Taxes

2019 Small Business Tax Checklist We’ve teamed up with LightSpeed to provide you with a detailed checklist on what your small business will need to ensure filing your taxes this year is a breeze! Download this PDF Checklist to help prepare you in time for filing your small business taxes! {{ vc_btn:title=Download+Now&link=url%3Ahttps%253A%252F%252Fquickbooks.intuit.com%252Fca%252Fresources%252Fca_qrc%252Fuploads%252F2019%252F03%252FIntuit_TaxChecklist-1.pdf%253Fcid%253Ddownload-checklist-sbc%7C%7C%7C&style=modern&gradient_color_1=turquoise&gradient_color_2=blue&gradient_custom_color_1=%23dd3333&gradient_custom_color_2=%23eeee22&gradient_text_color=%23ffffff&custom_background=%23ededed&custom_text=%23666&outline_custom_color=%23666&outline_custom_hover_background=%23666&outline_custom_hover_text=%23fff&shape=rounded&color=success&size=md&align=inline&i_align=left&i_type=fontawesome&i_icon_fontawesome=fa+fa-adjust&i_icon_openiconic=vc-oi+vc-oi-dial&i_icon_typicons=typcn+typcn-adjust-brightness&i_icon_entypo=entypo-icon+entypo-icon-note&i_icon_linecons=vc_li+vc_li-heart&i_icon_monosocial=vc-mono+vc-mono-fivehundredpx&i_icon_material=vc-material+vc-material-cake&i_icon_pixelicons=vc_pixel_icon+vc_pixel_icon-alert }} Whether your [...]

Do I Need an Accountant or Tax Preparer?

Accountants and other tax professionals can be worth their weight in gold during tax time, especially when it comes to legal and compliance issues. With the Income Tax Act numbering more than 3,000 pages, the amount of information often proves too much for the average business owner to stay on top of on their own. […]

Does Your Corporation Qualify for the Small Business Deduction?

If you run a Canadian-owned corporation, the small business deduction is one of the most beneficial income tax deductions available to your company. This deduction reduces the amount of Part 1 tax your company needs to pay. Benefits of the Small Business Deduction If your company qualifies for the small business deduction, you pay a […]

What to Do if You Make Money on Both Sides of the Border

If you make money at home and in the United States, you probably wonder how that affects your income tax. The answer depends on the type of income you receive and whether or not you’ve already paid taxes on it. Paying Taxes When You Make Money in Canada and the United States As a Canadian […]

How to Plan for Tax Season – Ask Tom

The information in this article is for educational and information purposes only and should not be relied upon for decision making. Always seek the expertise of a professional advisor or accountant prior to making any decisions.   Tax time can be intimidating for startups, especially if it’s your first business and you haven’t been through […]

The Secret Language of Accountants

When an accountant or treasurer finishes their report, are you left wondering whether you just heard good news or bad news? In its quest for precision and accuracy, the secret language of accountants can start to sound like jargon to the untrained ear. Those in the financial world frequently use terms that others never utter. […]

Helping to Audit-Proof Your Business

The Canada Revenue Agency (CRA) performs audits on various types of businesses for tax compliance each year, even if there’s nothing suspicious about their returns, so there’s no way to completely audit-proof your business. Even if you follow best accounting practices, you may still end up getting audited because the CRA selects a number of […]

Hiring an Employee: Get the HCSB Temporary Tax Credit

When your startup gets ready to hire for the first time, new costs tend to crop up pretty quickly. First, there’s the cost of recruiting and interviewing, and then there are the fees for processing government paperwork, not to mention you need to purchase any equipment the new recruits needs to do their job. The […]

Step-by-Step Guide for Canadian Income Tax Preparation

Your first year of business is bound to fly by. One day you’re dealing with a customer or sourcing supplies, then you suddenly realize you’ve been running your own small business for a whole year. While it’s something to celebrate, your also need to prepare in advance, because year-end demands financial and tax accounting to […]

How to Prepare for Payroll Tax Audits

Which would you rather endure: a visit to the dentist or a payroll audit? If you chose the dental visit, you’re probably not alone. But an audit can be pain-free if you’re properly prepared for it. Here’s how to make your business audit-ready. Understand How Accounts Are Chosen for Auditing The Canada Revenue Agency (CRA) […]

What is the Role of the Balance Sheet?

Intuit recently ran a survey which found that the single biggest reason that most small businesses don't succeed is that they lack the financial literacy skills needed to navigate the obstacles in front of them. Only 51% of companies that start up today will still be around 5 years from now. In order to change [...]