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How to use company bookkeeping templates? A text and video explanation of all things accounting!

Many bosses ask:

👉 "I have an accounting template, but I have absolutely no idea where to start filling it out?" 👉 "Why does the accountant always make me divide things into so many categories?"

If you're using a similar Bookkeeping Template (with separate table structures for banking, credit cards, payroll, sales, etc.), this article will help you understand it all at once 👇


🧠 First, understand the logic behind this bookkeeping template (important!)

The core of this form is not "recording," but rather:

👉 Enables accountants to directly prepare financial statements and file taxes.

The entire file is actually divided into 3 main modules:

1️⃣ Where does the money come from (income)?

  • Sales List

2️⃣ Where did the money go (expenses)?

  • Bank statement

  • Business credit card

  • Personal card / cash

3️⃣ Special fees (to be calculated separately)

  • Home office

  • Automobile

  • Payroll

👉 Simply put, it can be summarized in one sentence:

💡All inflows and outflows of money + clear categorization = taxable data


🏦 II. How to fill out a Bank Statement?

This is the most crucial table.

✔️ What do you need to fill in?

Every bank transaction:

  • Date

  • Description

  • Income/Expense

  • Category

✔️ How to choose a category?

Common classifications are as follows:

  • Rent

  • Utilities (water, electricity, and internet)

  • Office supplies

  • Professional fees (accounting/lawyer)

  • Advertising

  • Insurance

⚠️ Common Mistakes

❌ Not categorizing (most fatal) ❌ Writing all expenses as "Misc" ❌ Mixing income and expenses together

👉 Correct approach:

💡Every transaction must have an "identity".



💳 III. Business Credit Card

The logic is exactly the same as that of banks, but please note:

👉Only record "credit card spending" here, do not record it to the bank again.

✔️ Fill in the key points

  • Only records consumption (not repayments).

  • Each item needs to be categorized.

  • Keep the receipt (the CRA audit team will check it).

⚠️ Common mistakes people make

❌ Do not treat "credit card repayment" as a fee.

👉 In reality:

💡Repayment is just a transfer of funds, not an expense!


💸 IV. Paid by Personal (The boss pays out of pocket)

This is an area that the CRA is very concerned about.

✔️ In what situations do I need to fill this out?

  • Use personal credit card to buy company items

  • Pay the company in cash

✔️ Why is it important?

👉 This money can be used for:

✅ Reimbursement (not considered income) ✅ Offset against company profits (reduces tax)

⚠️ What happens if I don't keep a record?

👉 Company underreports expenses → overpays taxes


🏠 V. Home Office

If you are working from home, this table can help you legally save on taxes.

✔️ Shared costs:

  • Rent/Mortgage Interest

  • Hydropower

  • network

  • Local tax (partial)

✔️ Core computational logic:

👉 Usable area ÷ Total area

For example:

  • 1000 sqft home

  • 200 sqft for office use

👉 Reportable percentage = 20%

⚠️ Note:

❌ Cannot be 100% accurate ❌ Cannot be estimated arbitrarily


🚗 VI. Automobile (Vehicle Fees)

Applicable to:

👉 Using a vehicle for business trips/customer visits/deliveries

✔️ Requires recording:

  • Total kilometers (KM)

  • Business km

✔️ Fees include:

  • fuel costs

  • Insurance

  • repair

  • depreciation

💡 Key Formula:

👉 Business KM ÷ Total KM = Reportable Ratio


💼 7. Payroll

If you have employees or pay yourself a salary:

✔️ Required field:

  • Employee Name

  • Salary amount

  • Tax deductions (CPP / EI / Income Tax)

  • Payday

⚠️ The CRA is extremely strict:

❌ Failure to record payroll ❌ Failure to remittance on time

👉 A fine plus interest will be imposed directly.


💰 8. Sales List (Income)

This table determines how much tax you pay.

✔️ Fill in the information:

  • Customer Name

  • Income amount

  • date

  • Does it accept GST/HST?

⚠️ A very important point:

👉 Income must match bank deposits!




🚨 9. 5 common pitfalls for business owners

❌ 1. No categorization

👉 Accounting is unavailable

❌ 2. Duplicate records

👉 Profits are magnified or reduced.

❌ 3. Forgot to pay in cash or make personal payments

👉 Paying extra taxes for nothing

❌ 4. Mileage (vehicle) not recorded.

👉 Vehicle expenses are basically wasted.

❌ 5. Incomplete income records

👉 CRA audit risk is extremely high




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