2016-12-15 00:00:00 Taxes English Read about the importance of tracking startup costs for your business. Review the Canada Revenue Agency's rules on claiming these expenses. https://quickbooks.intuit.com/ca/resources/ca_qrc/uploads/2017/03/cash-register-with-magnifying-glass-to-track-costs.jpg Accounting Tips: Track Your Startup Costs

Accounting Tips: Track Your Startup Costs

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The Canada Revenue Agency allows small business owners and other self-employed individuals to claim startup costs as business expenses. To qualify, you must incur the expenses in the same fiscal period in which you carried on business. For example, if you use a calendar fiscal year and you incur startup costs for a business in March but don’t receive your first payment until November, you may claim these expenses on your tax return.

In most cases, this means you should track your startup costs long before you land your first sale or invoice your first client. To track expenses, consider using a business expense tracker app, and remember to track everything — office supplies, market research, and origination fees on loans for startup financing. Then, when you file your first tax return as a self-employed individual, remember to claim your startup costs.

References & Resources

Information may be abridged and therefore incomplete. This document/information does not constitute, and should not be considered a substitute for, legal or financial advice. Each financial situation is different, the advice provided is intended to be general. Please contact your financial or legal advisors for information specific to your situation.

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