Under what category does Ontario Small Business Support grant go and what tax code should I use?

Hi there aniz-premiuminno,

Making sure each transaction is entered properly is an important step in the bookkeeping process. QuickBooks Online is a great tool that helps you keep track of your business's finances. I can point you in the right direction.

In order to know how to enter that grant into QuickBooks Online, I recommend speaking to your accountant. Their accounting knowledge as well as understanding of best business practices will be able to let you know what type of transaction to use as well as which accounts to affect. You can add your accountant to your account by navigating to the My Accountant tab, then enter their contact info to send an invitation. You can also find an accountant near you by clicking the Find a pro to help button.

Feel free to reach out here if you have any more questions.

Hi Aniz

Because this is a grant and not a loan, it should be recorded as revenue, or a net off expenses.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-incom...

As with the 10% wage subsidy, if you opt to record it as revenue, you may wish to configure a 'Extraordinary Revenue'/'Other Income' account to show that it is a one-off item, not an expected recurring revenue like your normal sales.

Hope this helps!

Hi, I did set up an "other income" account and named it Grants  it shows up in my expenses but as an income. Do you know by any chance what line for the CRA T2 Schedule 125, I would enter it on then? I am not getting help on this anywhere.

Thanks so much

Jackie