SMALL BUSINESS ACCOUNTING in Spruce Grove - Without the Stress.

Common deductions include tools and equipment, work clothing and safety gear, vehicle costs, subcontractor payments, insurance, phone and internet, home office expenses, and licensing or union fees. The challenge is capturing them all without a system. I will help you set up record-keeping so you claim everything you're entitled to and keep more of what you earn.

Yes, but how you claim it depends on whether the vehicle is used solely for business or mixed personal and business use. You can deduct fuel, insurance, repairs, lease payments, and depreciation based on your business-use percentage. Keeping a mileage log is essential. I help you choose the method that maximizes your claim while staying CRA-compliant.

Construction holdbacks (amounts retained by a customer until a job is complete) can complicate your revenue and GST reporting if not tracked properly. They aren't income until released, but the GST treatment has specific rules. I make sure holdbacks are recorded correctly so your books reflect reality and you don't overpay tax.

The CRA generally expects itemized receipts, not just statements, to support your deductions. A statement shows that money was spent but not what it was for, which can cause claims to be denied in an audit. I help you set up a simple way to capture and store receipts so every deduction holds up.

If you're incorporated, you can pay yourself through salary, dividends, or a mix of both, and each has different tax and CPP implications. Salary creates RRSP room and CPP contributions; dividends can be simpler and sometimes more tax-efficient. We run the numbers for your situation and recommend the right blend.

You charge GST on your invoices (output tax) and claim back the GST you pay on business purchases (input tax credits). You remit the difference to the CRA. Trades businesses often leave input tax credits on the table by missing receipts. I make sure every eligible credit is captured so you're not overpaying.

Falling behind is more common than people think, and the CRA charges interest and penalties on late filings and unpaid balances. The worst move is ignoring it. I help you get caught up, file back returns, and set up a manageable payment arrangement so you can get back to a clean slate.

Incorporation can make sense once your income exceeds what you need to live on, when you want liability protection, or when you're planning to grow or take on partners. It offers tax deferral and income-splitting options but adds cost and paperwork. We review your numbers and goals to tell you whether it's the right move yet.

If you pay for a legitimate business expense with your personal money, your business can generally reimburse you. The expense will be recorded in your bookkeeping as a business expense paid with personal funds (often called shareholders loan/contribution) and you will reimburse yourself, tax-free, from the business bank account when there is sufficient cashflow. I can help you record the transactions correctly so your accounting doesn't overstate or understate income and expenses.