Bookkeeping for a new business in BC: the first year
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Most of the costly mistakes in a business’s books are made in its first months. Set up right, the first return is routine.
Short answer: in its first year a BC business registers its name or incorporates, gets a CRA business number, registers for GST when it has to (or earlier by choice, and from the start for a taxi or ride-share business) and for PST if what it sells requires it, gets a city business licence, opens a separate bank account, and keeps books from the first transaction. Orbis Accounting Ltd. sets up the books and accounts, keeps them monthly and prepares the first T1 or T2.
What goes wrong in a business’s first year?
- Business and personal money mixed in one account, which makes every later return harder.
- GST registration left too late, after one large contract has already crossed the threshold.
- PST missed, because it turns on what you sell, not on revenue.
- No record of start-up costs paid personally before the business had an account.
- A first corporate return that comes as a surprise, with no books to file it from.
What we do for a new business
- Set up the CRA business number and the GST, PST and payroll accounts you need.
- Set up QuickBooks Online, Xero or Sage 50 with a chart of accounts for your business.
- Record start-up costs and owner contributions properly from day one.
- Keep the books monthly and prepare the first T1 or T2.
Who this fits, and who it does not
It fits anyone starting a small business in BC, sole proprietor or incorporated. It does not include legal advice on whether to incorporate or how to structure shares, which is a question for a lawyer or tax adviser.
What do I need to start a business in BC?
A registered name or a company, a CRA business number, the tax accounts that apply to you, a city business licence and a separate bank account. The registration guide lists the steps and the registry fees.
Do I need to register for GST right away?
Not until taxable sales pass $30,000 over four consecutive calendar quarters or in one quarter, but you can register earlier. A taxi or ride-share business registers from the start, whatever its size. The GST guide explains when early registration pays.
Should I start as a sole proprietor or incorporate?
It depends on income, risk and plans. The sole proprietor or corporation guide sets out the trade-offs.
When is my first corporate tax return due?
Six months after the end of the corporation’s first tax year. The first T2 guide explains the dates.
How to register a business in BC →
Sole proprietor or corporation? →
Keeping business and personal money apart →
Tell us what your business does
Tell us your trade, roughly how many transactions a month and what you need filed, and a written plan and a fixed monthly price follow within one business day.
info@orbisaccounting.ca