Accounting Tips: Track Your Startup Costs

by Craig Anthony

0 min read

The Canada Revenue Agency allows small business owners and other self-employed individuals to claim startup costs as business expenses. To qualify, you must incur the expenses in the same fiscal period in which you carried on business. For example, if you use a calendar fiscal year and you incur startup costs for a business in March but don’t receive your first payment until November, you may claim these expenses on your tax return.

In most cases, this means you should track your startup costs long before you land your first sale or invoice your first client. To track expenses, consider using a business expense tracker app, and remember to track everything — office supplies, market research, and origination fees on loans for startup financing. Then, when you file your first tax return as a self-employed individual, remember to claim your startup costs.

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