Plain-language answers for Canadian business owners: starting and structuring your business, taxes and the CRA, and bookkeeping and cash flow.
Starting & structuring your business
Incorporating isn't automatically better for everyone. The right answer depends on how profitable the business is, how much cash you need to take out personally, your liability and risk, your growth plans, tax planning, the extra administration costs, and whether profits will stay inside the corporation.
Not sure? We can help you review the numbers and decide whether incorporating makes sense for your situation. Book a Consultation
There's no universal answer. The right mix depends on CPP, RRSP contribution room, corporate deductions, payroll requirements, your personal tax, your cash-flow needs and your overall compensation strategy. Sometimes a combination of salary and dividends works best.
It's best not to. A separate business account makes bookkeeping, recordkeeping, tax preparation, reconciliation and cash management much cleaner. If you're incorporated, corporate and personal transactions need to be kept properly separate.
Ideally before the books get messy. Early support can help with CRA registrations, accounting software setup, your chart of accounts, GST/HST, payroll, bookkeeping systems, tax planning, cash-flow management and understanding your financial reports.
Taxes, payroll & CRA
Yes. CRA online access makes it easier to check balances, filings, notices and program accounts, and helps make sure the information is accurate when you work with a tax or accounting professional.
Never share your CRA login with your accountant or bookkeeper. Use proper CRA representative authorization instead.
Not every new business needs one right away. Whether you must register depends on whether you supply taxable goods or services and when you pass the CRA's small-supplier rules.
Some businesses choose to register voluntarily earlier. That can help a new business with significant taxable start-up costs, because registered businesses may be able to claim input tax credits (ITCs). Registering also means collecting, filing and remitting GST/HST, so make the decision intentionally. Some industries and services have special GST/HST treatment.
In general, an expense needs a legitimate business purpose and proper documentation. Expenses that are partly personal may need a reasonable business-use split. What you can deduct depends on your specific facts, so we review your situation rather than relying on a one-size-fits-all list.
Calling someone a contractor doesn't make them one. Employment status depends on the actual working relationship and the factors the CRA looks at. Getting it wrong can lead to payroll and source-deduction problems.
Bookkeeping, cash flow & growth
Monthly is the right baseline for most active businesses. Waiting until tax season means making decisions with old information. Monthly bookkeeping helps you keep an eye on cash flow, profitability, GST/HST, payroll, receivables and payables, and upcoming tax obligations.
Accounting profit and available cash aren't the same thing. Cash is affected by accounts receivable, debt repayments, inventory, equipment purchases, owner or shareholder withdrawals, tax payments, GST/HST and timing differences.
Cash-flow planning through our Business Advisory Services shows where the money went and plans where it should go next.
Book a one-on-one consultation and we’ll talk through your business, your taxes and your books.
