Accounting Records: Income and Expense Journals
Using a simple table for your accounting lets you:
- quickly record all your income and expenses (e.g. sales and services) so you don't forget anything
- track your business's finances
- easily prepare your business's returns
- retrieve your income and expense data during a tax audit
A lot of accounting templates are available, but you can also use the following tables to create your own accounting system. Or you can use the income and expenses column headings in form TP-80-V, Business or Professional Income and Expenses, or form TP-80.AP-V, Farming or Fishing Income and Expenses, or create your own.
The following examples may not be right for you. You may need different accounting entries to meet your tax obligations.
Income journal – person who is not registered for the GST/HST and QST
Karl owns a small business that provides only in-store cellphone repair services. He keeps a daily record of his receipts to track his earnings and jot down questions for his accountant.
The following table shows his income entries to date.
Income journal – Clic-o-Karl cellphone repair service
Example of an income journal used by a person who is not registered for the GST/HST and QST to report the transaction date, the invoice number, the total sale amount and other important information for each sale they make.
Jane owns a small business that repairs cellphones and sells phones and accessories. She's registered for the GST/HST and QST and keeps an annual income journal.
The following table shows her income entries to date.
Income journal – Atelier mobile express cellphone repair service
Example of an income journal used by a person who is registered for the GST/HST and QST to report the transaction date, the invoice number, the amount before tax, the GST/HST and QST, the total including sales taxes and other important information for each sale they make.
Expense journal – person who is not registered for the GST/HST and QST
Jean runs a home hair salon. From day one, she started keeping a record of her operating expenses.
The following table shows her expense entries to date.
Expense journal – Salon de coiffure La Licorne
Example of an expense journal used by a person who is not registered for the GST/HST and QST to report the date the expense was incurred, a description of the expense, the total including sales taxes to enter by type of expense and other important information for every expense incurred.
Expense journal – person who is registered for the GST/HST and QST
Gaétan owns a hair salon. He's registered for the GST/HST and QST and keeps a record of his annual operating expenses.
The following table shows his expense entries to date.
Expense journal – Salon de coiffure Chez Gaétan
Example of an expense journal used by a person who is registered for the GST/HST and QST to report the date the expense was incurred, a description of the expense, the amount before sales taxes, the GST/HST and QST, the total including sales taxes to enter by type of expense and other important information for every expense incurred.