• Last Updated:
  • Apr 17th, 2017 7:22 am
[OP]
Deal Addict
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Jun 17, 2006
3475 posts
96 upvotes
Halton

New business few questions

Finally got my HST account set up before my company takes off. My question is I have been buying stuff for the company for the last few moths can I deduct the HST from the items even though I bought the items before I registered for the account? Or am I Out of luck?

Being a First time owner would you suggest an accountant and a book keeper? Some say if you keep everything organized in folders/files you can do the book keeping yourself? I was thinking a book keeper would start things off the right way till I see how it's done. My concern is screwing up HST/WSIB when it comes time. I checked out 'Wave accounting' it seems it could help. The accountant will be 100% needed

Thank you.
Enjoy Life
6 replies
Penalty Box
Feb 26, 2017
11 posts
1 upvote
Hi,

If it is a new business, you will be able to claim your 'incorporation' expenses.
Deal Addict
Feb 29, 2012
1359 posts
612 upvotes
Richmond
You'll probably be filing quarterly HST reports, so you probably have enough slack to include/exclude anything falling in the quarter when your HST number was issued (e.g., starting Apr 1). But technically if you weren't charging and collecting HST from your customers before a certain date, then you can't claim HST on expenses before that date either.

Paying an accountant/bookkeeper (preferably the same person) to set up your books and get you started off right is a good idea, if only because you should not divert your attention from making the business a success. If your business stays small and you later decide that you can do without the accountant/bookkeeper once things are running smoothly, that's a decision you can make later.
[OP]
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Jun 17, 2006
3475 posts
96 upvotes
Halton
Thanks the business is a Sole.p . And hst will be every 3 months.

Makes sense anything I bought before the hst can't be included. Just had to ask.

Do most accountant do book keeping aswell?
Enjoy Life
Newbie
Apr 15, 2017
7 posts
If you're an SP, you might not even need an accountant / book keeper. Can you give some more context around your business?
Deal Fanatic
Feb 1, 2006
9139 posts
251 upvotes
Expenses are deductible right from the commencement of business activities, I would definitely claim them and if ever audited, argue it with CRA.

If this is a small business with low transaction volume, you can just track expenses in Excel/Sheets and give totals to accountant at year end. Put net amount, HST, and total, so you always have easy info for HST filings.

If you're higher volume, get QuickBooks, the industry standard (all accounting firms I've worked for prefer it). Find a bookkeeper to set you up and/or teach you how to do basic record keeping. Should cost $40-50/hour, if much less, I'd be concerned about their abilities. There are a couple certification bodies that can help you find one.
[OP]
Deal Addict
User avatar
Jun 17, 2006
3475 posts
96 upvotes
Halton
newinc wrote:
Apr 16th, 2017 10:51 pm
If you're an SP, you might not even need an accountant / book keeper. Can you give some more context around your business?
Construction so wsib is a must. Subbing for a big contractor and renovations on the side.

Hst is every 3 months and transactions will be low 2-3 month
Bullseye wrote:
Apr 17th, 2017 6:38 am
If you're higher volume, get QuickBooks, the industry standard (all accounting firms I've worked for prefer it). Find a bookkeeper to set you up and/or teach you how to do basic record keeping. Should cost $40-50/hour, if much less, I'd be concerned about their abilities. There are a couple certification bodies that can help you find one.
I have never done anything like this and worried about screwing up the WSIB-HST although I am sure it's fairly easy. Transactions will be 2-3 times a month.

I think my company will be fairly easy and basic for an accountant/bookkeeper as everything is low. Hst is every 3 months
Enjoy Life
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