Welcome to Netbookkeeping

Bookkeeping Tips

Did you know...

  1. A Balance Sheet tells you what you owe and what you own.

  2. An Income Statement or Operating Statement tells you what you made or did not make.

  3. Budgets are based upon the Income Statement or Operating Statement.

Tips...

  • If you have a home office and are claiming expenses based on the percentage of space your home office takes; remember to track your cleaning supplies, such as window cleaner, toilet paper, javex, brooms, etc. These are all part of your household expenses and can be claimed using the same percentage as for utilities and mortgage interest.

  • Taxi receipts include the GST amount. (GST Rate is 5% as of January 2007)

  • Parking receipts include both the GST (5%) and PST (7%)

  • Insurance never has taxes.

  • Incorporating your business is not necessarily the best way to save money. Incorporation is very expensive, so be sure to check all the advantages and disadvantages before embarking on this process. Talk to an accountant first!

  • If you own a business, you do not need to file your income tax by the end of April. In fact your taxes are not due until June. However, if you owe the government money, this is due by April 30th unless you want to pay penalties and interest. If you are incorporated, your income tax is due 3 months after year-end, but the return-filing deadline is 6 months after year-end.