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One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Terms of Service
Welcome to Castle! These terms of service outline the rules and regulations for the use of our bookkeeping services.
By accessing this website and using our services, you accept these terms and conditions in full. Do not continue to use Castle services if you do not accept all of the terms and conditions stated on this page.
Castle offers professional bookkeeping services including transaction categorization, reconciliations, financial reporting, GST/HST filing, and other related services as agreed upon with the client.
2. Billing and Payments
All services provided by Castle are billed on a recurring basis unless otherwise
agreed upon. Payments are due upon receipt of invoice. We accept payment via credit card, debit card, and electronic funds transfer.
3. Cancellation and Refund Policy
Clients may cancel services at any time by providing 30 days’ notice in writing or via email. Refunds for prepaid services will be prorated based on the remaining unused portion of the services.
4. Privacy Policy
Our privacy policy outlines how we collect, use, and protect your personal information. We do not sell or share your information with third parties without your consent, except as required by law.
5. Liability
Castle will perform all services with reasonable care and skill. However, we do not accept liability for losses resulting from acts of nature, third-party errors, or misuse of financial information or reports by the client.
6. Amendments
Castle reserves the right to amend these terms of service at any time. Amendments will be effective immediately upon posting on this website.
7. Contact Us
If you have any questions about this privacy policy or our privacy practices, please contact us at:
Castle
316 1st Ave NE
Phone: 587-872-0602
Email: info@bookwithcastle.com
One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
What Actually Counts as a Deductible Expense?
What Actually Counts as a Deductible Expense?
If you have ever asked yourself, “Can I write this off?” — this post is for you.
We’re going deeper into what the CRA considers legitimate business expenses and how to stay on the right side of the rules.
A business expense must meet two tests
To deduct an expense, the CRA expects it to be:
1. Necessary to earn business income
You spent the money for the business, not for personal convenience.
2. Reasonable in amount
Market pricing matters. If everyone else pays $500 and you pay $5,000… that raises questions.
If it doesn’t meet both, it’s not deductible — or only partially deductible.
Common expense categories (and where people slip up)
Office & supplies
Pens, paper, ink, software subscriptions, computer equipment — all good.
Not allowed: décor or luxuries unrelated to operations.
Advertising & marketing
Website, domain, business cards, online ads.
Political contributions are never deductible.
Meals & entertainment — the 50% rule
Taking a client for coffee? Deduct half.
Business events? Still 50 percent.
Personal snacks at home do not qualify.
Vehicle & travel
If you drive for business, you can deduct a portion of fuel, insurance, repairs — based on business-use percentage.
A mileage log is required to prove it.
Driving to your regular workplace is personal, not business.
Home office
If your home is your primary place of business, you may claim a portion of:
Utilities, internet, rent or mortgage interest, property tax.
Must be based on square footage and usage.
Professional fees
Bookkeepers, accountants, legal support — fully deductible.
Capital assets (equipment, tools, vehicles)
Not expensed all at once — you write them off over time using CCA (Capital Cost Allowance).
CRA-approved categories determine the rate.
Mixed-use items require a split
Some things serve both you and your business.
Example: cell phone.
If 70 percent of usage is business, you deduct 70 percent of the bill.
Document how you calculated the split.
The documentation rule
If you want to keep the deduction in an audit:
Receipt + proof of payment + clear business purpose = audit-proof
Missing any one of these can jeopardize the claim.
Digital copies are fully allowed — just make sure the text is readable.
Bottom line
Deductible expenses share one thing in common:
If you didn’t spend the money, the business could not operate or grow.
Keep that mindset front and centre, and you’ll rarely go wrong.
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