Today’s Chosen Theme: Common Bookkeeping Mistakes Canadian Entrepreneurs Make
From coast to coast, Canadian founders face similar bookkeeping pitfalls—some small, some business-crushing. Today, we dive into real stories, GST/HST/PST traps, and practical routines that protect profits and peace of mind. If this theme hits home, subscribe and leave a comment with your biggest bookkeeping question so we can answer it in future posts.
Separating Personal and Business Finances
Open Two Lanes for Money
Use a dedicated business chequing account and credit card from day one. A Calgary café owner once told me separating accounts finally revealed their real food cost margin, which had been masked by personal grocery runs and impulse purchases.
Pay Yourself Properly
Decide between owner’s draw, dividends, or payroll, and document transfers clearly. When founders casually reimburse personal expenses, the books become a maze. Clean, scheduled compensation protects cash flow and simplifies year-end filings and shareholder records.
Your Turn: Share How You Keep Them Apart
Comment with your best tip for separating finances—naming accounts, color-coding cards, or setting calendar reminders. Real-world systems inspire other entrepreneurs, and your approach may become someone’s breakthrough habit this quarter.
Getting GST/HST/PST Right
Confirm whether you charge GST, HST, or GST+PST based on your nexus and customer location. Remember the small supplier threshold around $30,000 in revenue. Expanding into Ontario from Alberta? Update your invoicing rules before that first sale lands.
Getting GST/HST/PST Right
Capture eligible ITCs by keeping itemized receipts that show tax amounts. Many founders miss credits on software, advertising, and professional fees. Proper documentation means you keep more cash—without fearing a CRA review of incomplete records.
Choose Tools That Fit Canada
Select accounting software that handles Canadian tax rules well. Bank feeds, receipt capture, and multi-currency support are key. Many entrepreneurs praise Xero, QuickBooks Online, and Wave for practical features that actually get used daily.
Automate, But Review
Rules for categorizing expenses speed things up, but mistakes compound silently. Schedule a weekly review to catch odd postings and new vendors. Automation thrives when humans guide it, refine it, and question anything that looks suspicious.
Backups and Continuity
Create redundant backups in secure cloud storage and test your restore process quarterly. Document critical logins for trusted stakeholders. If your laptop vanishes or data is corrupted, continuity planning keeps invoicing and payroll running smoothly.