Accounting for cleaning & home services.

Questions worth getting ahead of

• Tracking taxable sales against the small supplier threshold
• Deciding whether helpers are employees or self-employed
• Keeping a vehicle logbook for travel between clients
• Matching platform-reported income to your own records
• Claiming input tax credits on supplies and fuel

Watch the small supplier threshold from your first client

A small cleaning or home-service business is generally a small supplier if its taxable revenue has not gone over $30,000 across four consecutive calendar quarters, and a small supplier does not have to register for GST/HST. The CRA says that once you exceed $30,000 in a single quarter, you have to charge GST/HST on the sale that crossed the line. Recurring clients can add up quickly. Track taxable sales by month and keep invoices in one place. Also confirm whether any of your services are exempt, since the CRA says you generally cannot register if you provide only exempt supplies.

Decide whether helpers are employees or self-employed

Growing a cleaning crew usually means deciding how to treat helpers. The CRA says employment status depends on the whole working relationship, not just a signed agreement or the label you choose. It looks at the level of control the payer has, who provides tools and equipment, and whether the worker can subcontract or hire assistants. If you set schedules, supply the equipment and direct how the work is done, the relationship may look more like employment. Bring your arrangements, any written agreements and a description of how work is assigned, then ask about payroll before the first payment.

Keep a logbook for travel between jobs

Moving between client homes can make a vehicle one of your largest costs. The CRA says you can deduct motor vehicle expenses only when they are reasonable and you have receipts, and that the best support is a logbook kept for the whole year. Each business trip is recorded with the date, destination, purpose and kilometres, along with odometer readings at the start and end of the period. After one full year, a three-month sample may be allowed if business use stays within 10% of the base year. Start the log at the beginning of the year rather than reconstructing it later.

Reconcile income reported by booking platforms

If you find clients through an app or website, the platform may report your income to the CRA. The CRA says a platform operator must give you a copy of what it reported by January 31 each year, and that you may be asked for your tax identification number, with a $500 penalty for each failure to provide it. The report does not replace your own return. Compare it with your bookings, payouts, fees and commissions. Keep monthly platform statements so any difference between the report and your bookkeeping can be explained.

Claim input tax credits on what you buy to do the work

Once registered for GST/HST, you can recover the GST/HST paid on purchases and expenses used in your taxable activities by claiming input tax credits. The CRA lists fuel, maintenance and repairs, motor vehicle expenses, telephone, and business-use-of-home expenses among the costs that may qualify. Cleaning products, equipment and fuel can add up across a year. Keep supplier invoices that show the tax and your registration details, and separate personal purchases from business ones. Ask how a vehicle or home office used partly for personal reasons affects what you can claim.

Support to discuss with Sora