Building Your Chart of Accounts From Scratch
Learn how to structure your accounting system with the right account categories. We cover asset, liability, equity, revenue, and expense accounts.
Read MoreAccounting Fundamentals for Canadian Startups
Essential resources for business registration, chart of accounts setup, and initial bookkeeping systems. Everything you need to get your numbers right from day one.
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Essential Guides for New Business Owners
Practical articles covering business registration, accounting setup, and bookkeeping best practices for Canadian startups.
Getting Your Business Number: A Step-by-Step Guide
Navigate the CRA registration process for your new business. Covers sole proprietorships, partnerships, and corporations in Canada.
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First Month Bookkeeping: Recording Your Initial Transactions
Practical steps for documenting startup expenses, equipment purchases, and initial revenue. Don’t let paperwork pile up.
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Tax Obligations You Can’t Ignore in Your First Year
Overview of GST/HST registration, income tax filing, and deduction tracking. Stay compliant from the start.
Read MoreCritical Setup Steps for New Businesses
Getting your accounting right early saves time and prevents costly mistakes later. Here’s what you need to tackle first.
1
Register Your Business with CRA
Apply for a Business Number through the Canada Revenue Agency. You’ll need this for GST/HST, payroll deductions, and corporate tax filings. Most registrations process within 15 minutes online.
2
Design Your Chart of Accounts
Create a logical account structure that matches your business type. Include accounts for assets, liabilities, equity, revenue, and expenses. This foundation determines how easily you can track finances later.
3
Set Up Your Bookkeeping System
Choose accounting software (QuickBooks, Wave, FreshBooks) or use spreadsheets initially. Record every transaction from day one. Consistency matters more than complexity at this stage.
4
Understand Your Tax Obligations
Research GST/HST requirements, income tax filing deadlines, and deductible expenses specific to your industry. Don’t wait until year-end to figure this out.
Common Questions About Startup Accounting in Canada
Real questions from new business owners — answered clearly and concisely.
When do I need to register for GST/HST?
You’re required to register for GST/HST once your revenue reaches $30,000 over four consecutive quarters. However, you can register voluntarily even if you’re below this threshold — it’s often beneficial if you’re making business purchases. Talk to an accountant about your specific situation.
What’s the difference between cash and accrual accounting?
Cash accounting records transactions when money actually changes hands. Accrual accounting records them when the transaction occurs, regardless of payment timing. Most businesses use accrual for better financial accuracy. The CRA requires corporations to use accrual accounting.
Can I deduct startup costs and losses?
Certain startup expenses are deductible, but not all. Equipment, software, marketing, and professional fees typically qualify. Startup losses can be carried forward to offset future profits. Keep detailed records of everything and consult with an accountant about what applies to your business.
Do I need an accountant or bookkeeper from day one?
Many startups handle initial bookkeeping themselves using software. A bookkeeper becomes valuable once you have regular transactions and payroll. An accountant helps with tax strategy, compliance, and year-end filings. Even one consultation early on can save money later.