Canada Questions about treatment of expenses

[JasCraig19]

Hi everyone,

I recently incorporated a business and I'm trying to figure out how to book my expenses. I am the sole owner and incorporated on May 27 of this year. I am still waiting on my business credit card to come so I have been paying everything out of pocket.

1) Am I correct that I should book all expenses to Opening Balance Equity prior to incorporation and then book expenses May 27 and on to an Owner Equity account?

2) I'm not going to book GST (Canada) before May 27, but am I OK to book it from May 27 and on even if it's coming out of pocket? Not a big deal, but just curious.

Thanks for any information!

 

[Corgo55]

Hi There... looks like nobody answered this... If your expenses were in the same year as you incorporated, I would expense them to their appropriate expense account and the credit them to Shareholder's Loans. Then you can take that out anytime later without tax consequences.