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Expensing a capital purchase in the month it happens is the single most common error we find in trades and equipment-heavy books. It overstates the cost of one month, understates every month after it, and leaves a pile of adjustments for somebody else to find in December.
The actual sequence, start to finish.
Every existing capital asset identified with its cost, in-service date, and whatever has already been taken against it.
A capitalization threshold and useful lives agreed up front, so treatment is consistent rather than decided case by case by whoever coded the invoice.
Entries go in with the close, which means the balance sheet is right in March and not only in December.
Schedules go to your accountant in a form they can tie out, which is usually cheaper for you than having them reconstruct it.
Quoted after a books review, based on how many assets are in play and the state of the existing records.
They will, and they will charge for it. The difference is that your monthly statements are wrong all year in the meantime — which matters a great deal if you're making decisions off them or showing them to a lender.
No, and the distinction matters. Book depreciation reflects how an asset is actually consumed; capital cost allowance is a tax calculation with its own classes and rates. We maintain the book schedules and keep them in a form that supports the tax work, whether we're doing that filing or your accountant is.
Whether a lease belongs on the balance sheet depends on its terms, so we read the agreement rather than assume. It is one of the more commonly mis-recorded items in trades businesses.
More questions answered on the FAQ page.
Monthly reconciliation, coded transactions, and financial statements — every month, on an agreed turnaround.
Custom KPI dashboards and reporting beyond the standard monthly statements.
Personal and corporate filing for Canadian businesses. Not currently offered to US clients.
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