Explore Small Business Finance Topics
Discover our most popular topics for Canadian solopreneurs and small business owners. From income tax and GST/HST to QuickBooks tutorials and managing your business finances, these guides are designed to help you move from financial uncertainty to financial confidence.
Click on any topic and scroll down to see related articles.
📑Canadian Income Tax
Guidance on filing and planning your Canadian taxes, from T1 and T2 returns to instalments
📊Managing Business Finances
From cash flow to pricing and metrics — learn to manage your business finances with confidence.
🏢 Canadian Business Structure
Should you incorporate? Stay informed on sole proprietorships, corporations, and registrations.
💰 GST/HST & QST
Understand how to register, file, and maximize input tax credits while avoiding common mistakes.
🧾 Guides and Tutorials
Practical accounting processes like reconciliations, journal entries, and reporting.
📝 Deductions & Expenses
Learn which expenses are CRA deductible and how to track them for maximum tax savings.
Quebec Taxes & Business
QST, Revenu Québec filings, Quebec payroll, and provincial rules every entrepreneur should know.
👤 Paying Yourself
Salary vs dividends, management fees, and how to pay yourself from your corporation or small business.
💻 QuickBooks Online & Tools
Tutorials, guides and time-saving tips for using QuickBooks Online effectively.
🏦 Money & Personal Finance
Personal finance strategies for entrepreneurs, from RRSPs to saving for taxes.
Is the Quick Method of Reporting GST/HST & QST the Right Choice for your Small Business
This post explains how the GST/HST and QST Quick Method works for Canadian self-employed individuals and small businesses, who it’s best suited for, and how to calculate whether it will save you time or money.
10 Year End Financial and Tax Tips for Your Small Business
As the end of the year approaches, many small businesses experience a natural slowdown. This makes it a practical time to review your business, financial, and tax position before year-end.
A year-end review allows you to identify planning opportunities, make adjustments before December 31, reduce last-minute tax preparation issues, and ensure you are properly prepared for the upcoming year. These tips are intended to help you assess your current situation and take action where needed.
How Long to Keep Your Business Documents According to CRA
If you are self-employed or have been in business for some time, it is important to understand how long business records should be kept. These records include invoices, receipts, bank statements, and other documents that you use to support your income and expenses.
Business records cannot be simply be discarded at any time. The Canada Revenue Agency (CRA) sets specific requirements regarding how long records must be kept, where they must be stored, and a process to follow if records are destroyed before the end of the required retention period.
9 Tax Facts about Charitable Donations for Individuals and Small Business Owners
Not all contributions or fundraising activities qualify as charitable donations for tax purposes. The Canada Revenue Agency (CRA) sets specific criteria for what is considered an eligible charitable donation and what documentation is required to claim a tax credit.
This article outlines key tax rules related to charitable donations, including what qualifies, who can issue official donation receipts, how donations are claimed by individuals and business owners, and common misconceptions.
What Types of Membership/Subscription Expenses Can You Deduct?
From an accounting and tax perspective, not all subscription costs are deductible, and deductibility depends on the nature of the expense and how it relates to earning business income.
This article explains which types of memberships and subscriptions are generally deductible, which are not, and how the Canada Revenue Agency (CRA) views common categories such as professional dues, software subscriptions, education platforms, and mixed personal-business services. I also discuss how to properly account for subscription expenses.
CPP for Self Employed Business Owners, Explained.
When you are an employee, your employer is responsible for withholding and remitting payroll deductions, including income tax and contributions to the Canada Pension Plan (CPP) or, in Quebec, the Quebec Pension Plan (QPP). Employers are also required to contribute an amount equal to the employee’s CPP or QPP contribution.
For self-employed individuals, there is no employer to withhold or contribute on their behalf. This resource explains how CPP/QPP contributions work for self-employed business owners, how contributions are calculated, when they are paid, and how they are reported on a personal tax return.
Guidance on Registering for Payroll and Remitting Source Deductions
There comes a time for many small business owners when they decide that they need to hire employees. This is usually an excellent sign as it means a) the business is growing and b) the small business owner has learned to delegate. It also means that additional paperwork needs to be filled out and additional taxes need to be paid. The simplest option when deciding to augment your workforce is to have the new worker invoice the business, based on hours worked or some other formula. Unfortunately, there are very specific rules as to who qualifies as a self employed contractor. Essentially, if your have someone that works full time, has little flexibility with respect to the hours that they work and you provide the tools such as a desk/office, computer etc, then there is a good chance that the tax authorities will classify them as an employee. In this case, where your worker is clearly an employee, you must register for payroll, pay them a salary and submit regular, periodic payroll reports and payments to the Canada Revenue Agency (CRA). As usual, if you live in Quebec, you must submit to Revenue Quebec (MRQ) as well.
Should you register for GST/HST and QST and What it Means to Be Zero Rated
When starting your new Canadian small business or launching into self employment, it is essential to determine whether you are required to register for GST/HST (and QST if you have a started a business in Quebec). The simple answer is that if you anticipate that your annual gross revenues (total sales) are going to exceed $30,000 and your products or services do not qualify as Exempt or Zero rated (explained below) , then you are required to register for GST/HST and collect sales taxes from your Canadian customers and clients.
The $30,000 limit applies to the last 4 quarters of revenues. If you decide not to register for sales tax upon the inception of your business/self employment, then you must monitor your sales revenues over a rolling 4 quarter period and register once you get close to this amount.
How to Use Online Banking to File and Pay Your Business Sales Tax, Payroll DAS and Corporate Tax
The major Canadian banks including RBC,CIBC, TD, BMO and Scotiabank as well as some regional banks such Caisse Desjardins Access D’Affaires conveniently have business tax filings service which replicate the forms that have to be submitted to the government for:
sales tax (GST/HST and QST),
Payroll tax (deductions at source payable to Revenue Canada and Revenue Quebec) and
corporate taxes payable to Revenue Canada (CRA) and Revenue Quebec (RQ).
Business tax instalment payments (including GST-QST instalments)
This means that instead of entering the data on the forms that are available via my business account at CRA and RQ and then going to your bank to make payment, either online or via mail, it can all be done at one time through one form that serves as both tax filing and payment.
Can You Pay Yourself a Management Fee Instead of Salary or Dividends?
As an incorporated business owner in Canada, one of the most important and pervasive questions (certainly from my point of view) you face is how to pay yourself from the corporation.
Generally speaking there are two primary options: salary or dividends.
There is also a third option which is management fees and is often bandied about as an easier alternative.
Should You Pay Yourself a Salary or Dividend? 7 Considerations For Small Business Owners
While incorporation has many benefits for small business owners, it does introduce additional complexities that are not faced by registered businesses. Unincorporated business owners are essentially taxed on their net business income, which allows for more time to devote to tax planning and how to spend all of your richly deserved profits. Incorporated business owners, on the other hand, cannot just withdraw cash from their businesses as the need or whim arises. There needs to be a formalized structure in place which usually takes the form of either salary or dividends. Either type of remuneration has tax and other implications that need to be considered before making a decision.
Should You Incorporate Your Rental Property
For anyone looking to build wealth, achieve financial independence and/or retire early , it is important to build sources of passive income i.e. streams of income that are generated month to month without having to actively work for them. One of the most popular methods of building passive income is to purchase a property that generates rental income. If done correctly and with some luck, the return on investments (ROI) , which is composed of both rental income and appreciation in the value of the property, can significantly improve your net worth.
An important decisions when purchasing a rental property is whether you should own the property in your own name or purchase it through a corporation. The right decision depends on a variety of factors.
Essentials for Starting Your Sole Proprietorship
According to Canada Revenue Agency (CRA), the definition of a sole proprietorship is as follows:
A sole proprietorship is an unincorporated business that is owned by one individual. It is the simplest kind of business structure. The owner of a sole proprietorship has sole responsibility for making decisions, receives all the profits, claims all losses, and does not have separate legal status from the business. If you are a sole proprietor, you also assume all the risks of the business. The risks extend even to your personal property and assets.
The simple answer is that if you are selling any type of product or service, on an ongoing basis, and you are not employed by another organization where you receive an employment income slip such as a T4, you essentially have a business. If this business in not incorporated or part of a partnership with one or more individuals, then you are a sole proprietorship.
Pros and Cons of Incorporating your small business
The decision to incorporate can be a difficult one that many small businesses face at some point in their lifetime and . Incorporation, literally, represents the creation of a new person. Whereas a sole proprietorship is an extension of one's self, a corporation takes on a life of it's own; it can give birth to subsidiary, marry via a merger and die with a dissolution. It has to file it's own tax return, can be sued and has a set of rules that govern it's existence. Below are some of the points to consider when deciding whether to incorporate:
