- To earn income, your company might be incurring lot of expense. Chances are that you would be missing to claim some of them. So you will end up paying more taxes and HST, then you should be.
- Simply saying, any expense you incur to earn business income is eligible as business expense. (There are certain exceptions)
- Here are the specific guidelines and excel sheet template to track your all expenses.
General Guidelines:
- Incur your Business expenses from Business Bank or Business credit card only
- Get a Bill in the Business name (For Laptop, phone, car etc.)
- Pay 13% HST to get a Bill. (So, we can claim both expense and HST) (Don't pay in cash to avoid HST)
- Keep your all expense and bills receipt for 7 years! (No need to send to your accountant, but CRA might ask a copy at a later date)
Business Expense Made Via Personal Bank, Personal Credit Cards or Cash
Business Expense Made Via Personal Bank, Personal Credit Cards or Cash
Please use below excel sheet to track Business Expense paid Via Personal Bank, Personal Credit Cards or Cash
