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Start with expenses tied to earning business income

Canadian businesses can generally deduct reasonable expenses incurred to earn income. Common examples include professional fees, software, advertising, office costs, insurance, and the business portion of phone, internet, vehicle, or home-office expenses. The important part is not simply having a receipt—it is being able to explain the business purpose clearly.

Keep the record before you need the deduction

A consistent monthly process makes tax filing easier and gives you more reliable numbers throughout the year. Keep invoices, note the business purpose of unusual purchases, and separate personal spending whenever possible. Good records reduce questions at tax time and make it easier to identify expenses that were overlooked.

Some costs need special treatment

Meals, vehicles, home-office costs, and larger equipment purchases follow specific rules. A deduction can also change depending on whether you operate as a sole proprietor or corporation. Review these areas with your accountant before filing so the claim is supportable and the timing is handled correctly.