Key points
- Use a numbering scheme by account type and leave gaps for growth.
- Keep it lean: every account should support a decision or a filing requirement.
- Map accounts to the CRA's GIFI codes so year-end tax preparation is straightforward.
A standard structure
| Range | Type | Examples |
|---|---|---|
| 1000–1999 | Assets | Bank, accounts receivable, prepaid expenses, equipment |
| 2000–2999 | Liabilities | Accounts payable, GST/HST payable, payroll liabilities, loans, shareholder loan |
| 3000–3999 | Equity | Share capital, retained earnings, dividends |
| 4000–4999 | Revenue | By service line or product group |
| 5000–5999 | Cost of sales | Direct materials, subcontractors, direct labour |
| 6000–7999 | Operating expenses | Rent, software, professional fees, insurance, travel |
Design principles
- Revenue by what you want to manage. Separate service lines so you can see which ones make money.
- Separate GST/HST collected and ITCs, or use a single control account that reconciles to each return.
- Avoid "miscellaneous". If an item recurs, it deserves an account; if it doesn't, classify it properly.
- Use classes, locations or projects for extra detail instead of multiplying accounts.
- Map to GIFI (the CRA's General Index of Financial Information) so financial statements drop straight into the T2.
Shareholder loans: track amounts between the corporation and its owners in a dedicated account. Amounts a shareholder owes the corporation that are not repaid within one year after the corporation's year-end can become taxable income to the shareholder.
Official sources
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