When you run your own business, every dollar matters. And nothing feels better than trimming your tax bill by writing off legitimate expenses. The best part? Staying on top of your receipts not only saves you money, it keeps the CRA off your back. Win-win.
But here’s the thing: lots of small business owners miss out on deductions because they either don’t know what qualifies, or they can’t find the proof.
Our #1 tip: Don’t ditch the receipts.
Sounds obvious, right? But you’d be surprised how many people toss them. Coffee with a client, a new laptop, even that Uber to the trade show — capture that receipt. Come tax time, they can add up to big savings.
🎥 VIDEO: Caitlyn at True North Accounting breaks down four common deductible expenses you don’t want to miss.
So, what actually counts as a write-off?
The CRA’s general rule is simple: if you spent the money to earn business income, it’s probably deductible. But the CRA doesn’t hand out freebies — you’ll need to justify the expense and prove it was for business. That’s why receipts and a little organization go a long way.
Here are the big categories every small business owner should know:
1. Tech and gadgets
Your business runs on tech — laptops, phones, cameras, maybe even drones. If it helps you make money, it’s likely deductible.
That said, don’t confuse “deductible” with “free” - you're still paying full price, and your business gets an 11% tax deduction and 5% GST credit.
Further, if you buy a $2,500 laptop, you can’t just lop the full amount off your income. Big-ticket items are usually written off over time through depreciation or capital cost allowance. That’s where a good accountant comes in — we’ll help you figure out the right amount to claim each year.
👉 Pro tip: Always check with your accountant before going on a gadget shopping spree. They’ll help you figure out the tax benefits.
2. Entertainment
Wooing clients with hockey tickets or a round of drinks? The CRA lets you write off 50% of the tab.
But here’s where it gets tricky: not all entertainment expenses make the cut. You can deduct bar tabs, sporting events, concert tickets, runway shows, cab fares, lift tickets, even fishing tours. But you can’t write off season tickets, gym memberships or golf greens fees.
And remember, it has to be business-related.
👉 Want more detail? Check out our blog: What business entertainment expenses are deductible?
3. Food and drinks
Coffee meetings, business lunches, even Friday cocktails with a client — all 50% deductible.
The key? It has to be business-related.
👉 Keep notes on the receipt: write down who you met with and why. That way, if the CRA ever comes knocking, you’ll have the details handy.
4. Staff events
Want to reward your team? You can throw up to six staff events a year that are 100% deductible — as long as everyone’s invited and there is a limit of $150 per person.
Holiday party, summer BBQ, team bowling night — all fair game. But if it’s just a select few employees, it drops back to 50%.
So go ahead and plan that party. Your team will thank you, and so will your tax return.
5. Client and sales events
Hosting an open house, appreciation night, or customer thank-you party? Good news: food and drinks at these events are 100% deductible.
This is one of those rare spots where the CRA is extra generous — because client-facing events help promote your business and generate sales. Think of it as a win-win: you keep your customers happy and shave a little extra off your taxes.
6. Donations and sponsorships
Donating to a registered charity? With an official tax receipt, you’re good to go.
Sponsoring a local team, event or festival? If they’re giving your business exposure in return — signage, logos, product placement, shout-outs — those expenses can also be written off.
👉 Not sure if your sponsorship qualifies? Ask us. We’ll help you figure out whether it’s a deductible business expense or a charitable donation (there are tax differences between the two).
7. Travel
Out-of-town business trip? Keep those receipts! Flights, hotels, taxis, meals — all deductible.
Meals are even 100% deductible if you’re more than 40 km from your office. And if you drive your own car for business travel, track the kilometres. The CRA allows you to deduct a portion of your fuel, insurance and maintenance based on business use.
Pro move: keep a simple log with the dates, destinations, and purpose of each trip. A quick note in your calendar works just fine and saves you from head-scratching later.
8. Conferences and training
Heading to a workshop, seminar or industry conference? Those expenses are deductible too.
Keep the conference receipt and agenda as proof of attendance. If you extend your trip with a couple of vacation days, that’s fine — just be prepared to split the costs. The business portion (flights to the city, conference fees, meals while you’re there) is deductible, while the vacation portion (hotel nights after the event, sightseeing tours) is not.
👉 Pro tip: If you mix business and pleasure, give your accountant the details. We’ll help sort the write-offs from the just-for-fun stuff.
The golden rule: keep proof
The CRA doesn’t care if you meant to keep receipts — if you can’t prove it, it doesn’t count. Here’s how to stay audit-ready without drowning in paperwork:
- Save digital copies — snap a photo of every receipt and store it in the cloud.
- Write quick notes — who you met with, why you bought it, or what the trip was for.
- Keep a mileage log if you use your car for business.
- Don’t mix business and personal — use a separate bank account or credit card for business expenses whenever possible.
We’ve got your back
Knowing what you can and can’t write off doesn’t have to be stressful. Keep your receipts, stay organized, and ask for help when you’re not sure. Our team of friendly CPAs knows small business inside and out. We’ll help you:
- Maximize your write-offs
- Stay on the CRA’s good side
- Keep more money in your pocket
📞 Ready to make tax time less painful? Reach out anytime — we’ve got your back.
Read more about Bookkeeping topics that may be helpful to you and your small business.
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