Allowable Write-offs

In the big scheme of things, all companies need to concentrate on the bottom line.  This applies to proprietorships, partnerships and corporations.  By “bottom line” we are referring to the net profit or loss on the Earnings Statement or Profit & Loss Statement.  Simply put, revenues are the money coming in and expenses are the money going out.  Subtract expenses from revenue and you wind up with the bottom line.  A positive and healthy bottom line means that the company is doing well.  This is what we all strive for.  The opposite can also occur.

A large bottom line also means that more taxes will need to be paid.  To address this, you want to make sure that you claim all legitimate expenses to keep the bottom line as low as possible.  These are the write-offs.  The operative word is “legitimate”.

In simplest terms, expenses are the monies paid out to run the business and, presumably, to earn revenue.  There are rules set by government that address what is considered to be reasonable and allowable.  A lot of it is very straight forward but some of it is not.  For many expenses, all of it can be written off or applied.  Some things like meals & entertainment as well as travel expenses have conditions attached.

Many business owners and managers use “company” money to pay for personal expenses.  Is this allowable?  Yes it is – provided that the money is allocated as such and doesn’t make it to the Profit & Loss Statement.  Trying to claim personal expenses as company expenses constitutes tax fraud and tax evasion.  If caught, this could lead to stiff fines, penalties and interest.  Also, this would likely set up the company and/or the owners for continued audits.  Not desirable by any means.  There are enough legitimate write-offs to keep taxes fair and reasonable.

One additional word on government involvement: they are under no obligation to point out missed expenses that would reduce the tax burden.  The onus is on the business owners as well as their bookkeepers and accountants.

So what constitutes allowable write-offs for businesses?  Comprehensive lists are available on government websites along with explanations and additional information.  Some of the more common ones are:

  • Advertising
  • Bad debts
  • Bank fees and merchant transaction fees
  • Bookkeeping (our personal favourite)
  • Business use of home expenses
  • Capital cost allowance (depreciation expense)
  • Delivery, freight and courier expenses
  • Fuel costs (excluding personal motor vehicles)
  • Insurance
  • Interest
  • Legal, accounting and other professional fees
  • Maintenance and repairs
  • Management and administration fees
  • Meals & entertainment
  • Motor vehicle expenses (personal vehicles)
  • Office expenses
  • Property taxes
  • Rent
  • Salaries, wages and benefits
  • Supplies
  • Telephone, utilities and internet
  • Travel
  • Others including the cost of goods and/or services sold

This list is by no means complete.  Part of what we do is to determine all the expenses that apply to our clients and their companies.  By all means connect with us to review your situation and how we can help.  Let’s keep your allowable write-offs real and safe.

Until next time…

Tracy

Vaidehi

Bookkeeper

Meet Vaidehi, a dedicated and professional Bookkeeper since 2021, who proudly supports and assists her clients. Her efficiency and expertise shines through her seamless handling of her clients’ financial records including Accounts Receivable, Accounts Payable, Bank Reconciliation and client communication. Trust Vaidehi to provide the support and solutions you need. During her personal time, Vaidehi enjoys dancing, cooking and tending to her garden.

Tinna

Bookkeeping Manager

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Duane

Executive Director

A true believer in the power of streamlined workflows and strategic financial planning, Duane is not just about balancing the books; he is also about balancing success with sustainability, innovation with tradition, and growth with groundedness. Bringing together a blend of expertise, experience, and enthusiasm, he is focused on improving systems to continue on providing a high level of customer service to all of Fiscal’s partners, customers and vendors. He invites you to join the Fiscal Performance network and learn how to solve your accounting and bookkeeping challenges today.

Olu

Client Service Manager

If you’re seeking a bookkeeper with a passion for precision, a friendly demeanor, and a love for the beautiful game of soccer, then look no further than Olusegun. With over 10 years of experience with auditing and financial analysis, Olusegun brings a unique blend of expertise and enthusiasm to the table. Known for his approachable demeanor and willingness to go the extra mile, he’s not just your typical accountant – he’s a trusted ally in your company’s full cycle financial management. So, if you’re in need of a bookkeeper (with auditing know-how) who gets the job done, valuing integrity and reliability as part of every job, Olusegun is your go-to guy!

Sam

Task Manager & Quality Control

Sam is a seasoned Bookkeeping Manager with over 14 years of experience. Proficient in book cleaning, reviews, HST report preparation, and finalizing accounts using QuickBooks, he holds a Bachelor’s degree in Law, and Master’s degree in Commerce. Sam is known for his dedication to meeting deadlines, his collaborative work ethic, and equal prioritization of family and work. A nature and pet lover, he finds solace in music.

Alex

Reviewer

Meet Alex, a highly esteemed member of our team, whose accounting expertise spans back to 2015. Holding a semi-qualified Chartered Accountant designation and a post-graduate in Accounting (achieved in 2018) Alex remains steadfast in catering to the needs of clients. Over the course of this distinguished career, Alex has cultivated invaluable proficiency with an array of esteemed accounting software. Renowned for unwavering punctuality, Alex consistently maintains a proactive approach, ensuring meticulous oversight of all deliverables.

Eric

Bookkeeper

Meet Eric, a distinguished professional with a Master of Commerce and a semi-qualified Chartered Accountant. He boasts three years of specialized experience in Canadian and US accounting, using software such as QuickBooks Online, QuickBooks Desktop, and Dext. Eric’s proficiency shines through his seamless handling of onboarding, migration, clean-up, and catch-up projects. Renowned for his tech-savvy approach, Eric leverages his expertise in advanced Excel macro building to empower clients — enhancing their productivity and efficiency. Trust Eric to deliver unparalleled financial solutions tailored to your specific needs, ensuring excellence every step of the way.

Jess

Bookkeeper

Jess is a dedicated Bookkeeper, with a Bachelor of Accounting, who is proud to assist her clients with bookkeeping support, since 2020. Jess is well-versed in a suite of software programs with a focus on QuickBooks Online. Her expertise extends beyond conventional bookkeeping, encompassing Accounts Receivable, Accounts Payable Management, Payroll processing, and adeptly managing the books as per client specifications and needs. She stands out for her swift file processing capabilities and streamlined financial processes at Fiscal Performance.

David

Task Manager

Meet David, Fiscal Performance’s Task Manager. A distinguished accounting & finance professional since 2014, David is adept in leadership roles. Known for his advanced skills in process implementation and continuous improvement, David works to ensure optimal outcomes for clients. With extensive experience spanning global markets including Canada, USA, UK, and Australia, he specializes in providing comprehensive CFO & bookkeeping services. Proficiency in a variety of accounting software enables him to tailor solutions to meet his clients’ needs effectively. David is detailed oriented and his ability to deal with conflicting priorities in high-pressure situations makes him an VIP at Fiscal Performance.

Chris

Reviewer

Introducing Chris, a Reviewer at Fiscal Performance and a seasoned professional in the accounting & finance industry. He boasts a career, starting in 2017, that includes executive roles to team leader positions. A post graduate in accounting, he is proficient in software such as QuickBooks Online and QuickBooks Desktop. Chris has honed his skills over the years, optimizing his bookkeeping processes by prioritizing accuracy and efficiency. Known for his dedication and meticulous approach, Chris consistently seeks out innovative solutions to streamline operations and deliver top-tier results. His commitment to excellence and his proactive attitude makes him an invaluable asset at Fiscal Performance.

Tracy Khamis

CPB, DFA – Bookkeeping Services Specialist™

Managing Director

Always wanting to learn and gain knowledge, Tracy has worked for multiple companies from various industries. Having the opportunity to work in varied industries from small companies to large organizations such as banks, accounting firms, schools, restaurants, construction, manufacturing and the arts has been extremely exciting. Each industry has different rules that apply, along with different government requirements. This experience has provided Tracy with extensive growth and understanding of bookkeeping, multiple software platforms, and in-depth financial report preparation. To know Tracy is to appreciate what she can do to put your books in order and keep them in a timely, relevant and professional manner.

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