So anything that you claim you take your clients out and you paid something for, that would be a full meals and entertainment expense. So it has to be business related. Otherwise that’s going to be just a personal expense that you’re trying to run to the business, which really what’s Sierra is trying to avoid. That’s right. Yeah. And I know the one thing that CRA hates for some reason, um, Gulf, uh, Gulf dues. So a lot of people, they use this for meals and entertainment because it’s a good way to, um, to kind of interact with your client and get your client to, um, converse with you and bond with you and have that relationship. But for some reason CRA does not like, uh, golf dues and golf memberships. So you just have to think about that. And um, in a way, if you’re thinking of tax implications, yes, it is good to put that in your income statement for accounting purposes, for you to see how much of it you’re using to generate income with Edmonton Bookkeeping.

But if you’re thinking of a, a tax implications, those are yeah. Items like that gets added back to your income and calculation for your taxable income. Right? Yeah. Yeah. Is actually, um, I know we hadn’t thought about talking about this, but it kind of triggered another thing with mileage cause some people think that they can count their mileage just driving to the office and home. Um, which is not true either. If you’re just driving to your place of business, you can’t claim out mileage. Um, but if you’re driving to appliance office and then back to the, your office, that can be cleaned. So anything for the business, not just the general business saying, you know, if you’re doing errands for the business on your way home, you can claim it. But if you’re just driving home or if you’re doing personal business, uh, errands on the way home, it doesn’t count. [inaudible].

Yeah. Um, how can the payroll expenses be organized? Yeah. So sometimes we just have a payroll. Um, but really we should break it into some different categories so that you have your, um, your burden, which is your, um, taxes that go with your payroll. So, um, a lot of businesses get caught with that. They think that they don’t need to worry about the payroll expense. Oh well we’ll take care of that after that. We’ll pay our employees and we don’t have quite enough money for the source deduction. So your CPP, EEI and your taxes that have to come off, you’re required to take them off for, um, for your employees. And um, a lot of people get caught with that. Right. Cause they do their, their um, [inaudible] in February and they don’t have their source deductions don’t match what the CRA expects them to be paying for Edmonton Bookkeeping.

Yeah. And those very hefty penalties for not having those. Yeah. And the reason is, um, I mean these are, these are income that you would have given to your employees, but instead you would held it for you. So this is not really your money to begin with. And that’s the reason why they penalize it so much because you’re using somebody else’s money to kind of have that cashflow in your business, which is not very uncommon in the business, but really you should be, um, putting these aside and remitting it to the government, otherwise you can appear huge bounty. Yeah, exactly. Exactly. So the other thing with the payroll is that, um, benefits, we usually put that in a separate line as well, just to let you can see like how much you in paid paid the employee, how much of that was benefits and how much of it was sourced actions without Edmonton Bookkeeping.

Just again to keep you a little bit more organized so you can see what’s happening in your company. Um, what should be posted to professional fees. Yeah. So that’s another one that we see quite often where people, um, just kind of put whatever into there. But really professional fees are lawyer fees or professional accountant fees, like chartered accountants, PCA at CPF, CPS, sorry. Well, um, yeah, to get those, um, those in there. Um, subcontractors don’t go in there really. Bookkeepers don’t go in and out. Yeah.

Um, what are other expenses, expenses or they just don’t fit into the expenses. Some of the expenses we talked about management fees can go in there. Um, I don’t know. Can you think of any other, yeah. Yeah. So this one, it’s kind of, um, this is something that we prefer really, um, management’s Hilary. So really your owners calories. I know most of us pay ourselves with the recipe employees and the same payroll account, but really it’s, it’s very beneficial that you separate yourself from the regular employees because this will, you’ll be able to see how much really is left for you before you take out the money for your yourself. Um, and again, you are not a regular employee that needs Edmonton Bookkeeping.

There’s a lot of stuff that you have to be doing and it’s part of the reason of being a business owner is you have to spend hours in, in your business. So I think it’s very important that you separate from their, um, uh, some items. Um, I know if you’re incorporated, some people have rental properties that they would put into their business. So it sometimes it’s, it’s a lot easier to evaluate, um, your actual active business income separate from your rental income. So normally I would, we would suggest to put your rental income in activities at the bottom where it’s separate from your, um, from your regular business, right? Yeah, yeah. Those are songs

is it okay to review the income statement by itself? Yeah. So we’ve talked about this in some of our other [inaudible]. The video is that it’s really important to review your income statement along with your balance sheet and even more important to review your balance sheet first and then your income statement just so you kind of get a whole picture of your business and how it’s working. Um, and you’re not making decisions based on information that is incorrect or not complete. Yeah, absolutely. There’s a lot of anomaly, I normally say you could have it figured out with your balance sheet, right? That would correct your income statement. Yeah. Yeah. And I think it’s really tempting to just look at the income statement because that really gives you the bottom line. Yeah, absolutely. It tells you what you did without Edmonton Bookkeeping.

Yeah. But a whole picture is a lot better. Like it’s a, especially if you’re looking at, if you’re, if the activities of your business are actually supporting the entire company and, um, in terms of cash flow, for example. Yeah. So stuff like that. Yeah. Yeah. So that’s all we have for today. I hope you find it informative. Um, if you have any questions or comments, please feel free to, um, put them below in our comments section. Um, please like and subscribe, share like our videos and we’d be uploading videos daily. Um, thanks so much for watching and I’ll see you guys next time you need Edmonton Bookkeeping.