Frequently Asked Questions
Get expert answers to your bookkeeping and compliance questions from Marnova Solutions Inc.
What tax deductions can a small business in Ontario claim to reduce taxable income?
Small business owners in Brantford, Ontario can deduct legitimate business expenses such as bookkeeping and accounting fees, advertising, software subscriptions, home office costs, business insurance, and vehicle expenses. The key is keeping detailed receipts and records.
Marnova Solutions Inc. helps identify every eligible deduction so you don’t miss tax savings under CRA and Ontario Ministry of Finance rules.
When do I need to register for GST/HST in Ontario?
In Ontario, the federal threshold applies: if your business (including associates) makes more than $30,000 in taxable supplies in four consecutive calendar quarters (or in a single quarter) you must register for a GST/HST account and begin collecting tax.
Even if you’re under that threshold, voluntary registration can allow you to claim Input Tax Credits (ITCs).
What’s the difference between operating as a sole proprietor or corporation in Ontario—and which is best for tax purposes?
In Ontario:
A sole proprietor reports business income (and losses) on their personal tax return; business income is taxed at personal rates.
A corporation (especially a Canadian-controlled private corporation or CCPC) may benefit from the Ontario small business deduction (SBD) on active business income.
Choosing the right structure affects tax rates, liability, paperwork and long-term planning. (more information: Government of Canada)
How can I separate personal and business finances properly?
You should always keep a separate business bank account and credit card. This makes bookkeeping, GST/HST filing, and CRA audits much easier.
Marnova Solutions Inc. sets up a clear QuickBooks structure so your personal and business transactions are never mixed.
What are the common tax mistakes small businesses make in Ontario?
Top errors include:
Missing GST/HST registration or remittances
Failing to file on time
Claiming ineligible expenses
Not keeping backup documentation
Our bookkeeping process catches these errors early and ensures you meet all Brantford, Ontario small business compliance requirements.
What are the key tax-filing deadlines for businesses in Ontario?
Sole Proprietor: June 15 filing deadline, balance due April 30
Corporations: Return due 6 months after year-end, tax payment due 3 months after
HST & Payroll: Monthly, quarterly, or annually depending on volume
We track and remind you of every CRA and Ontario Ministry deadline — no more missed dates or late-filing penalties.
Can I claim home-office expenses in Ontario, and what are the rules?
Yes, if you use a part of your home exclusively and regularly for business or to meet clients. You can deduct a portion of rent, utilities, and internet.
We’ll work with your accountant to calculate the allowable percentage and ensure it’s properly documented for CRA audit readiness.
How should I track vehicle expenses for my business?
If you use your vehicle for business, you can claim either actual expenses (fuel, maintenance, insurance, depreciation) or use the simplified method (kilometers) depending on your situation, but you must keep a log of business vs personal use.
We’ll review your vehicle usage, set up a mileage/expense tracking system, and help you choose the method that provides the best deduction while remaining audit-proof.
What happens if my Ontario business has a loss this year?
As a sole proprietor/partnership in Brantford, Ontario, business losses can offset other personal income. For a corporation, losses may be carried forward/back under income-tax rules.
We’ll analyze your records and ensure those losses are applied in the most tax-efficient way possible.
How do I know if my worker is an employee or contractor under Ontario law?
Misclassifying workers can trigger unremitted payroll deductions, CPP/EI liabilities, penalties from CRA or Ontario Ministry of Labour, Immigration, Training and Skills Development.
We can review your worker relationships, contracts, payroll processes to ensure correct classification, withholding, remittance and record-keeping tailored to Ontario rules.
What bookkeeping records should small businesses keep?
You should retain all receipts, invoices, bank statements, payroll summaries, and HST filings for at least six years after the tax year or longer.
We’ll organize your records in QuickBooks Online so you’re always “accountant-ready.”
How can I reduce my business taxes in Ontario?
Smart tax planning includes timing income and expenses, maximizing HST input credits, using family income-splitting (where allowed), and leveraging capital cost allowance.
Our bookkeeping ensures your financials are accurate so your accountant can make the best tax-saving decisions.
What if I get a CRA audit or tax notice?
Don’t panic — it happens more often than you think. Keep your records organized and respond quickly.
Marnova Solutions Inc. keeps your books transparent and ready, and we’ll coordinate with your accountant to respond efficiently to CRA inquiries.
Do I need to make quarterly tax instalments?
If you expect to owe more than $3,000 in personal or corporate taxes, CRA may require quarterly instalments.
We can calculate and schedule these payments to help avoid interest or late penalties.
Are client gifts and meals deductible for my Ontario business?
Yes — meals and entertainment are 50% deductible if they are for business purposes, and client gifts may be deductible if properly documented.
We categorize these correctly in your books to ensure CRA compliance.
What are the tax implications if I close or sell my Ontario business — what should I watch out for?
You’ll need to file final returns (personal or corporate), handle disposition of assets (potential capital gains or recapture), transfer of liabilities, GST/HST accounts closure, and ensure your corporation (if one) is dissolved properly.
We’ll ensure your books are up to date and your accountant has clean records for year-end or sale reporting.
How do new Ontario and federal tax changes affect small business owners?
Changes in federal/Canada tax rules (and Ontario corporate tax rules) can affect things like passive investment rules, small business deduction phases, GST/HST thresholds, digital economy rules. Staying updated avoids surprises.
Why should I hire a professional bookkeeper instead of doing it myself?
Because small bookkeeping errors can lead to big CRA penalties. A local professional ensures accuracy, compliance, and clear communication with your accountant.
We bring the expertise, proactively identify opportunities, ensure compliance, and free you to focus on running your Brantford, Ontario business—knowing your tax and bookkeeping side is covered.