Most small business owners in Burnaby miss out on tax write-offs every year. That’s money you could be reinvesting in your business. As a business owner, you want to keep more of what you earn while staying compliant with the Canada Revenue Agency (CRA). The good news is that there are plenty of legitimate tax write offs for small businesses that can help reduce your tax bill. The challenge? Many entrepreneurs either don’t know about them or don’t track them properly.
At Rocket Accounting, our team of small business tax accountants in Burnaby works with local business owners every day to identify overlooked deductions, improve recordkeeping, and ensure you’re not leaving money on the table. In this guide, we’ll walk you through seven common items you can claim on taxes and explain how professional advice can maximize your savings.
Why Tax Write-Offs Matter for Small Businesses in Canada
The CRA allows businesses to deduct reasonable expenses incurred to earn business income. These deductions, often called write-offs, directly reduce your taxable income, meaning you pay less tax. For a small business, the impact can be significant:
- Lower taxes free up cash flow for growth.
- Accurate deductions keep you compliant and reduce audit risk.
- Strategic tax planning helps you make smarter financial decisions year-round.
But here’s the catch: missing eligible write-offs means you’re essentially giving the government free money. Strong small business accounting ensures that deductions are captured properly and your books are CRA-compliant year-round.
7 Tax Write-Offs You Might Be Missing
Here are some of the most overlooked deductions that Canadian small businesses can claim:
1. Home Office Expenses
If you work from home, even part-time, you may qualify to deduct a portion of your household costs. Eligible expenses can include:
- Utilities (heat, hydro, water)
- Internet and phone
- Rent or mortgage interest
- Property taxes and insurance
- Maintenance costs (e.g., cleaning, minor repairs)
Example: If your home office takes up 10% of your home’s total square footage, you can claim 10% of eligible expenses.
Tip: The CRA requires that your home office is either your main place of business or used exclusively for earning income and meeting clients. Be prepared to show records if audited.
2. Vehicle Expenses
If you use your vehicle for business purposes, you can claim a percentage of operating costs, including:
- Fuel
- Maintenance and repairs
- Insurance
- Lease payments or depreciation (called capital cost allowance in Canada)
- Licensing and registration fees
Example: A contractor driving to job sites can deduct the percentage of kilometres driven for business vs. personal use.
Tip: Keep a detailed mileage log, start and end odometer readings, date, purpose of the trip. Without proper documentation, the CRA may deny your claim.
3. Meals and Entertainment
Taking a client out for lunch or hosting a business meeting at a restaurant? These expenses can be partially deductible.
- Typically, you can claim 50% of meal and entertainment costs incurred to earn business income.
- If meals are provided at a worksite (e.g., construction site), they may be 100% deductible.
Example: Meeting a potential client at a Burnaby café to discuss a project qualifies as a deductible business expense.
Tip: Always note the purpose of the meeting and the name of the client on the receipt.
4. Professional Fees
Hiring experts isn’t just smart for your business; it’s also deductible.
- Accounting and bookkeeping services
- Legal fees related to business operations
- Consulting services
Example: If you work with Rocket Accounting’s small business tax accountants, your fees are deductible business expenses.
Tip: Be sure to separate personal legal or accounting costs from business-related ones. Only business expenses qualify.
5. Office Supplies and Technology
From printer ink to software subscriptions, many everyday purchases are deductible.
- Office supplies (pens, paper, toner, postage)
- Computers, tablets, or smartphones used for business
- Software (Xero, QuickBooks, Adobe, Microsoft Office)
- Online tools for project management or marketing
Example: A graphic designer can deduct the cost of Adobe Creative Cloud, as it’s essential for generating income.
Tip: For equipment over $500, you’ll need to use capital cost allowance (CCA) rules instead of deducting the full amount in one year.
6. Insurance Premiums
Protecting your business often comes with deductible benefits.
- Commercial property insurance
- Liability insurance
- Errors and omissions insurance
- Health and dental benefits for employees
Example: A small consulting firm in Burnaby that carries professional liability insurance can deduct the premiums as a business expense.
Tip: Keep your policies organized and review annually to ensure coverage matches your business risks.
7. Advertising and Marketing
Getting your name out there can also save you money at tax time. Eligible write-offs include:
- Website design, hosting, and domain fees
- Digital ads (Google, Facebook, LinkedIn)
- Business cards, brochures, and print ads
- Sponsorship of local events or sports teams
Example: A Burnaby chiropractor advertising in a community magazine can deduct the cost of the ad.
Tip: Personal promotion (like sponsoring your child’s soccer team without including your business name) does not qualify.
How Small Business Tax Accountants Help You Maximize Write-Offs
Knowing about write-offs is one thing. Claiming them correctly, and in your best interest, is another. Here’s how professional support makes a difference:
- Compliance: Ensure your claims meet CRA standards.
- Documentation: Set up proper systems to track receipts and expenses.
- Optimization: Identify additional deductions you may have overlooked.
- Planning: Strategically time expenses to lower your tax burden.
Beyond tax write-offs, accountants can support with ongoing needs like bookkeeping and payroll services, which often tie directly into deductible business expenses. Think of it this way: you’re focused on running your business, not memorizing the Income Tax Act. A dedicated small business tax accountant makes sure you’re protected while keeping more of your money in your pocket.
Take the Next Step
At the end of the day, you work hard to grow your business; don’t let overlooked deductions take away from your success. With the right guidance, you can keep more of what you earn, reduce stress at tax time, and focus on running your company.
If you’re ready to discover the tax write-offs you may be missing, book a call with our Burnaby tax accountants to see which write-offs you might be missing.Our team of experienced small business tax accountants in Burnaby is here to help you navigate the CRA rules with confidence and clarity.
FAQs
What are some common tax write-offs for small businesses in Canada?
Common write-offs include home office expenses, vehicle costs, professional fees, office supplies, insurance, and advertising. Working with small business tax accountants ensures you don’t miss any eligible items.
How do I know what items you can claim on taxes as a business owner?
The CRA allows deductions for expenses that are reasonable and necessary to earn business income. A tax professional can help you separate personal from business costs to stay compliant.
What are compiled financial statements and why do I need them?
Compiled financial statements provide a clear summary of your business’s financial position, prepared by a professional accountant. They’re not audited, but they are often requested by lenders, and investors.
Can I claim 100% of my vehicle expenses?
Only if the vehicle is used exclusively for business. Otherwise, you’ll need to calculate the business-use percentage using a mileage log.
Are meals with clients always deductible?
Usually, 50% of meals and entertainment costs are deductible. There are exceptions, such as meals provided at a remote worksite, which may qualify for 100%.
How can bookkeeping services help me with tax write-offs?
Staying organised is key to maximising deductions. Bookkeeping services make it easier to categorise expenses correctly, track receipts, and ensure nothing is missed when claiming tax write-offs.
Why should I hire a small business tax accountant in Burnaby instead of doing it myself?
Tax rules in Canada can be complex, and mistakes can cost you in penalties or missed deductions. Local professionals understand both CRA requirements and the realities of running a business in Burnaby.
Do small business tax accountants only help at year-end?
Not at all. The best results come from year-round planning; from setting up recordkeeping systems to advising on purchases, payroll, and cash flow.
Do I need T2 corporate tax services if my business is incorporated?
Yes. Incorporated businesses in Canada must file a T2 return every year, even if there’s no tax payable. T2 corporate tax services ensure your return is prepared accurately, deductions are maximised, and deadlines are met to avoid penalties.
How do I get started with Rocket Accounting?
It’s simple. You can book a call with one of our Burnaby accountants to discuss your business and identify the tax write-offs you may be missing.
How can I contact Rocket Accounting directly?
If you’d like tailored advice, don’t wait until tax season. You can reach out through our contact us page and our team will respond promptly.
