Restaurant owner organizing tax documentation

Canadian Restaurant Tax Guide

With the tax season right around the corner, and let’s be honest, tax season always feels like it’s just around the corner, now is the time to familiarize yourself with the necessary information needed to file Canadian taxes for restaurants and food establishments. With a grasp on restaurant accounting, now is the time to dive […]

Accountant looking at paper work for taxes

What You Need to Know About Your Taxes and COVID-19

With the pandemic introducing more work-from-home days, filing your 2020 taxes will be a little different this year. There are a few things you will have to take into consideration this year, including CERB payments in new rules introduced by the Canada Revenue Agency. Learn how to prepare and what to expect when filing your […]

Woman self-employed filing taxes

When are Self-Employed Taxes Due?

With 2020 nearing its end, now is the time to get a head-start on your tax returns for this past fiscal year. If you are a self-employed person living in Canada, you will need to know the associated due dates for your income tax returns as governed by the Canada Revenue Agency (CRA). Learn more […]

Self-employed woman standing at desk with shipments ready to go out beside her

Common Self-Employed Tax Deductions

Tax deductions, also known as tax write-offs, is the act of claiming back some of the expenses incurred while running a business. These write-offs allow individuals to lower their total taxable income on their federal returns. The Canada Revenue Agency (CRA) dictates what expenses can be claimed back and how much they can be written-off […]

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How to File Self-Employed Taxes in Canada

As a self-employed individual, you are required to wear all the hats of your business, from customer service and inventory management to accounting and tax preparation. We understand that it can be a little overwhelming at times to cover all those responsibilities. That’s why we have put together a how-to guide to help individuals file […]

Self-employed woman going over her income

Business Income Vs. Employment Income

Everybody wants an income, but not everybody knows the differences between incomes. The type of income you earn will directly impact how you file your tax returns with the Canada Revenue Agency (CRA), including both business income and employment income. But what is the difference between the two, and why should it matter to you […]

Self-employed women on phone

What are Self-Employed Taxes?

Self-employment has some exciting benefits, including a flexible schedule and the freedom to select your projects. It also comes with big responsibilities, especially at tax time. When you’re self-employed, the burden of reporting, filing, and paying taxes falls entirely to you. If you want to streamline the process, it’s a good idea to get familiar […]

Business owner sorting through tax deductions

How to Claim Tax Deductions for Your Small Business

Claiming business expenses on your income tax returns is part of the deductions process for any small business owner or self-employed individual in Canada. Such deductions, or write-offs, are a tax incentive that will help you lower your taxable income each year on your tax return. Learn how to deal with various deductible company expenses […]

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What is EBIT and How to Calculate It

EBIT is Earnings Before Interest and Taxes. It reports a firm’s earnings before interest and tax expenses are added to operating costs. This article defines EBIT, and explains the calculation. You’ll learn why EBIT is important, and how to use the formula to make informed business decisions from reporting insights. Finally, this discussion covers the pros […]

Young business man working at home with laptop and papers on desk

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 […]

Man looking at business tracker app on his desktop and phone

Best Expense Tracker App for Small Businesses

According to the 2019 travel and expense management trends report, nearly half of all businesses surveyed, precisely 43% of the companies, still manage their expense reports manually. This trend report predicts that the travel and expense management software market is set to reach $2.7 billion by 2022, illustrating the growing need for such financial tools […]

woman looking over her bad debt

What is Bad Debt Expense?

Owning and operating a business means celebrating in its successes while also dealing with the not-so-successful outcomes. Owed debt, or bad debt expenses, is one of the many things your company must deal with as a price of offering credit. Losing money from a bad deal does not necessarily mean your business must pay the […]

Miscellaneous expenses tax form

What are Miscellaneous Expenses?

Miscellaneous expense is a term used to define and cover costs that typically do not fit within specific tax categories or account ledgers. Regular, extensive, and ongoing expenses, such as payroll, office rent, and inventory supplies, will all have their own account to track and record associated costs every month. On the other hand, miscellaneous […]

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What are Travel Expenses?

Many types of industries require people to take an occasional trip for work. For others, being on the road could be a defining factor in their job. In either instance, travelling for business purposes means you could be eligible for deductions on the expenses incurred while travelling. What exactly are business travel expenses, and how […]

business man calculating tax deductions

What are Tax Deductions?

Tax deductions, or tax write-offs, are deductions an individual or corporation can make on their tax returns to reduce their taxable income. These deductions affect a person’s or business’s federal income taxes and must be approved by the Canada Revenue Agency once they have been filed. Small business owners and self-employed individuals can benefit from […]

Woman calculating her taxes

How to Calculate Taxes Owing

Just like us, the government likes to be paid throughout the year. This is why we, as businesses and individuals, are required to pay taxes in quarterly instalments and as payroll withholding tax in any given tax year. These quarterly payments and payroll withholding payments effectively estimate what we anticipate we will owe the Canada […]

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How to File Small Business Taxes

Whether you are a self-employed individual or small business owner, the responsibility of filing taxes will fall to you. So, how do you file taxes in Canada? Here are the things you’ll need to know when filing your small business tax returns this season. <<Back: What are Small Business Taxes?   How to Prepare for […]

Man looking over his expenses

What is a Tax Write-Off in Accounting?

If your small business pays an operating expense, chances are you can write-off a percentage of that expense from your taxes. A tax deduction, or tax write-off in accounting is a form of incentive that allows businesses and individuals to deduct that amount from their taxable income, as permitted by the Canada Revenue Agency. Here’s […]

small business owner organizing her taxes

When are Canadian Taxes Due for Small Businesses?

The Canadian tax return deadline in 2021 will differ for businesses, depending on how they are structured. Small businesses that are run as a sole proprietorship or partnership will have different filing deadlines than those run as corporations. On top of these factors, the Canada Revenue Agency (CRA) has issued some deadline extensions due to […]

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Common Small Business Tax Credits

Come tax season, small business owners and self-employed individuals should always check the tax credits available to them. As part of the annual filing process, companies can file for these credits, which will reduce the amount of tax they must pay to the Canadian government. Researching and applying credits must be done every year to […]

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8 Business Operating Expenses You Can Deduct

Operating expenses are an essential cost of running a business. Without them, there would be no business. The government of Canada understands this required cost of work, and as such, offers Canadians the ability to deduct a percentage of these expenses from their personal income tax returns.   <<Back: What are Tax Deductions?  Next: What […]

small business owner doing her taxes

What are Small Business Taxes?

Tax season comes around every year, yet there are so many variables to keep track of annually that it could feel like tax time, all of the time. Not only do businesses and individuals have to ensure their financial record keeping is correct and current for their own management, but that they also accurately depict […]

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The Secret Language of Accountants

CPA Bill Kennedy shares a list of common accounting terms you’ll hear in financial analysis, along with warnings about what actions you should take. 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 […]

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How to Claim Cryptocurrency on Your Income Tax in Canada

Learn how to file your bitcoin in your taxes. Find out what to do with your cryptocurrency when filing your income taxes with the Canadian Revenue Agency (CRA). This relatively new currency has certain guidelines on taxation. When It comes to income tax, the CRA treats cryptocurrency like a commodity, so it is important to […]

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 […]

Woman using her phone to online bank

What Important Banking Information Do I Need When Submitting My Taxes?

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 with help you stay organized while you submit your taxes. It is important to have an understanding of certain financial numbers, so you […]

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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.

Man working on computer in sheet metal business

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.

small business tax bracket

Tax brackets: How to prepare and file your Canadian small business taxes

If you’re an unincorporated small business owner or are self-employed, it’s time to prepare your receipts and income statements for the upcoming tax season. If this is the first year you’ll be filing as a small business owner, or you’ll be doing it on your own rather than working with an accountant, there’s a lot […]

Farmer on smartphone evaluates tax credits while sitting on bed of company truck

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.

Woman looking up CRA tax savings on her computer

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 […]

People at convention

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 […]

Self-Employed Worker

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 […]

woman at her computer working on payroll deductions for her small business

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 […]

Woman and her employee at their restaurant

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 […]

Accountant reviews a rolling budget on smartphone accounting application

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.

file folder with outstanding invoices

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

Learn how to deal with changing sales tax rates and outstanding invoices. Discover how to collect outstanding invoices while informing your clients of a change in tax rate. 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 […]

Tourism business managers discuss GST and HST rebates for tour packages

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.

Two business men going through their income tax forms

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. Eligibility […]

Pile of boxes

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.

Brick house with blue door

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.

Self-employed professional at desk views loan interest on laptop

How to Deduct Loan Interest

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

Consultant meets with an international client on a business trip

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.

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Understanding Taxes for Artists and Performers

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

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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.

Accountant working with tax forms

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 […]

Charity board members discuss how CRA rule changes affect the charity's political activities

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 totalling $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 […]

Brewer calculates depreciation for brewing vats

How to Calculate Depreciable Assets

Learn how to calculate depreciable assets and what straight-line depreciation is and the steps involved in calculating it, and review an example calculation. 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 […]

Executives discussing trade incentive programs

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.

Man explaining the meaning of payment in lieu of taxes

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.

Accountant explaining the concept of a fiscal pardon to a listener

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.

Woman reading to see if her small business will be exempt from the New Employer's Health Tax

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.

Developers evaluate the consequences of a robot tax

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.

Business owner calculating NOPAT for his small business

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.

Female accountant and woman client discuss international earnings at office desk near bookshelf

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 […]

Small business owner reviews capital gains tax on tablet in store

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 […]

Fisherman on boat operating small enterprise in Canada releases fish caught in net

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 [...]

Bakery owner displays charitable donations while holding chocolate sweets on tray

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 […]

A worker serves ice cream at a company party

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 […]

An accountant helps a business owner amend her business tax return

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.

Home-based interior designer reviews tax credits on tablet sitting at table

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.

A small business owner filing taxes using the business number of his business

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.

Investors pose for photo while discussing allowable business losses in front of backdrop

Small Business Deductions – Allowable Business Investment Loss

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

Employees use their own tools to refurbish surf boards

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.

Business professional discusses business acquisitions with client near brochures and paperwork

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.

Human resources manager explains updates on the latest union agreement to the company's accountant

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.

Woman in accounting office poses for photo while discussing operating leases with briefcase nearby

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.

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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.

An overwhelmed business owner fills out Form RC4288

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.

A bartender settles a customers bill with a tip included

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.

An independent hair stylist works on her taxes on a tablet

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.

Accountant checks the Payroll Deductions Online Calculator to calculate the payroll taxes for her company

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.

Accountant calculates the provincial and territorial corporation tax for her clients

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.

An accountant completes online transactions using her company's corporation key

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.

An accountant reviews a company's adjusted cost basis with a client

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.

Accountant multiplies the company's capital gain with the inclusion rate

What Is an Inclusion Rate?

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

Accountant shows his assistant the difference between a T4A and a T4A-NR slip

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.

A small business owner reviewing the small business job credit when filing taxes

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.

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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.

Independent contractor views deductions on smartphone in vehicle near navigation system

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.

Accountant reviews capital costs with small business owner at office table with tablet

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.

Accountant holding glasses discusses double taxation for small businesses

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.

Landlord on laptop computer evaluates potential write-offs for small business

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.

Business owner reviews her company's payroll data to see if she qualifies for a QHSF reduction

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.

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Taxes and Tips for Day Care Providers

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

Farmers posing for photo near garden and crops discuss tax relief options

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.

Small business owner checks her account to make sure she has the funds to pay her taxes using the CRA My Payment system

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.

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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.

Entrepreneurs discuss incorporating their business so their company will be more attractive to shareholders

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.

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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.

An accountant helping a client using the CRA's LOI and LOAR programs

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.

Professionals in accounting office discuss the refundable tax credit near desk and backdrop

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.

A tax attorney prepares for an assessment appeal before the Tax Court of Canada

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.

Business consultant discusses CRA regulations while posing for photo in office with rolling briefcase

Tax Tips for Consultants and Independent Contractors

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

A business owner filing taxes on time to avoid penalties

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.

A business owner considering changing the GST reporting period of her business

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.

Woman trying to stay abreast of the tax code

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.

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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.

Entrepreneur checks her QuickBooks app to see when she officially started her business

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.

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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.

Male Accountant Reviews the Process of Revenue Agency Audits While Holding a Laptop

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.

Women Discussing How to Claim the Lifetime Capital Gains Exemption

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.

Retail Store Owner Discusses Excise Duty With Customer

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.

Person calculating deferred taxes

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 […]

A small business owner discusses her business's taxes with an accountant

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 […]

Accountants debate how much capital cost allowance to calculate into this year's tax deductions

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 […]

A cash register with a magnifying glass to track company startup costs

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 […]

Male contractor and female client review prepaid assets on construction site holding computer

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 […]

A temporarily laid off employee wonders about his future

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 […]

An accountant calculates a company's net tax using the quick method

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 […]

A woman looks over fabric as part of a barter exchange

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.

Women in accounting office discuss excise taxes while posing for photo

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.

Cashier Handing a Receipt to a Customer

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 […]

Restaurant employee calculating taxes at bar near register and customer

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, […]

Man explaining how to adjust sales tax liability in QuickBooks Online

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 […]

A laptop and a mouse for business use are tech gadgets that a small business owner can claim as business deduction

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

When you replace or [upgrade your company’s 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 […]

Business owner uses QuickBooks Online to record a sales tax expense

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. […]

Brothers hang a painting in their family run gallery

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 […]

Two women in office at table with packages and paperwork evaluating employee T2200 forms

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 […]

Production manager outlines chain of supply for accountant so she can determine GST/HST charges

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 […]

An accountant works on a company's tax return

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 […]

Pair of employees react to a question about tax deductions for employment expenses

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 […]

An apprentice chocolate maker poses with a pot

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 […]

Accountant explaining PST and TVQ/QST to his client

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, […]

A business owner's cellphone sits on a desk

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 […]

A family run food truck closes for the day while one owner reviews the day's sales on a tablet

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 […]

Two business partners discussing the impact of the 2017 legislation on life insurance tax benefits on their business

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 […]

Business partners pose in their retail store

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 […]

Female accountant posing by desk with tax returns in accounting firm office with grey backdrop in background

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 […]

A small business owner reviewing bank accounts for her business and personal life

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 […]

A receipt printer on a white background

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 […]

A small business owner uses QuickBooks to help with filing her taxes

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 […]

Small business storefront with a loss in property value

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 […]

Foreign contractor posing for photo in office near electronic equipment

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 […]

A Tax Professional Explaining Business Insurance Write Offs

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 […]

Small business owner rings up a customer for goods plus GST

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 […]

Small business owner viewing tax app outside while sitting near flower bed

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 […]

Business owners calculating cash expenses for a business

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 […]

Freelancer discusses completing her taxes

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 […]

Two men discussing tax strategies at a desk

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 […]

Women Relieved of Stress

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. […]

Planning for Tax Season

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 […]

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 […]

Self-employed woman in office on laptop reviewing tax breaks while sitting at desk

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 […]

Auditor explains adjustments that need to be made in the daily practices of a small business startup

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) […]