Tax Question - Year End Timing

michty6 wrote: ↑ Simple question: you run an sole trader business. Business expenses are put on a credit card, then paid off every month.

At year-end could you either (1) elevate your income (by not paying off the credit cards before the year end) or (2) reduce your income (by making sure you pay off every penny before year end?

Basically question is whether or not credit cards are looked at by CRA as part of cash accounting...

ml88888888 wrote: ↑ You need the actual receipt for the expense, not the credit card payment, in order to claim tax deduction. If CRA audits you and you don't have the actual receipt to show what the expenses are, you will be denied deduction.

michsnedd wrote: ↑ So the date of the receipt dictates which tax year it goes into, regardless of when the cash flow occurs? I understand this is how it works under an accrual accounting system, I was wondering about a cash accounting system (which unincorporated businesses can use for their personal tax returns) - hence my question...

For example, if receipt is dated Dec 2020. Hits credit card in Dec 2020. But actual payment and cash outflow towards the credit card - to actually pay the expense - occurs in Jan 2021. Under cash flow accounting, could you claim this expense in 2021?