What to take away
- A payment description does not prove its business purpose or tax treatment.
- Payment-processor deposits may combine sales, fees, refunds and tax.
- Keep source documents and an explanation for unusual transactions.
A payment total does not explain the purchase
A card entry at a large retailer could represent office supplies, equipment, a personal purchase or several items combined. The merchant name and total cannot establish which explanation is correct. A receipt gives more detail, and business context supplies what the receipt still cannot show.
The same issue appears with subscriptions, travel and mixed-use purchases. Record the business reason and provide relevant support rather than asking the bookkeeper to infer the purpose from the name on the statement.
A deposit may contain several transactions
A processor settlement can combine customer sales, refunds, chargebacks, fees and tax amounts. Entering the net deposit as sales can hide both revenue and costs. Keep the settlement report so the components can be connected to the bank entry.
For example, a $485 deposit could represent $500 collected less a $15 processing charge. That arithmetic illustrates why the net bank amount is not the entire story. Real settlements may contain additional items and require a fuller reconciliation.
Transfers and borrowing are not automatically income
Money arriving from another company account, a lender or an owner needs to be identified. A transfer is not a new customer sale merely because it appears as a deposit. Similarly, paying a loan can involve principal and interest that need different classifications.
Provide statements for all business accounts and identify the other side of transfers. When an owner pays a company cost personally or the company pays a personal cost, give the dates, amounts and source documents openly so the shareholder account can be reviewed.
Tax claims need their own support
An income-tax expense deduction and a GST/HST input tax credit are different questions. Registration status, the purchase's use and the applicable rules matter. A bank entry alone may omit information needed to support an ITC.
Where a document is missing, ask the supplier for a replacement or corrected copy. Do not manufacture an invoice or assume that applying a tax fraction to a payment creates sufficient evidence for a claim.
Keep records accessible when software changes
Accounting software can organize evidence, but access to the underlying records still matters. Before closing an account or changing systems, confirm what can be exported, how attachments are retained and who will have access later. A dashboard is not a record-retention plan.
The CRA generally requires records to be kept for a prescribed period, with exceptions and longer retention for some information. Confirm the rule for the records involved rather than deleting everything once an annual return has been filed.
Create a short handoff note
Use a simple list for unusual items: transaction date, amount, account, what happened and where the evidence is stored. Flag uncertainty explicitly. This is more useful than a folder of unexplained screenshots or a collection of confidently guessed categories.
Agree with Sora on a secure way to share records. The general enquiry form is suitable for describing the help you need, rather than sending tax identifiers, banking credentials or a complete financial file. A clear handoff gives the first bookkeeping conversation a better starting point.
Sources & editorial notes
Sources checked October 23, 2026. The examples are illustrative and provide general information. Discuss how the guidance applies to your circumstances with your accountant.
- Business recordsCanada Revenue Agency
- GST/HST and payroll recordsCanada Revenue Agency
- Input tax creditsCanada Revenue Agency
- Where and how long to keep recordsCanada Revenue Agency
Rules and guidance can change. Use the current official source and confirm the treatment for your facts. To flag an error, contact Sora.