8 Canadian tax & accounting terms starting with B
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
Bad Debt
A bad debt is an amount owed to your business that has become uncollectible, allowing you to write it off and often recover the tax already remitted on it.
Balance Sheet
A balance sheet is a financial statement showing what a business owns, what it owes, and the owners' equity at a single point in time.
Basic Personal Amount
The basic personal amount is a non-refundable tax credit that lets every Canadian earn a base level of income each year free of federal income tax.
Beneficial Owner
A beneficial owner is the real individual who ultimately owns or controls a company or asset, even when legal title is held by someone else, such as a nominee or trust.
Bookkeeping
Bookkeeping is the day-to-day recording and categorising of a business's financial transactions, forming the foundation for accounting and tax filing.
Break-Even Point
The break-even point is the level of sales at which total revenue exactly covers total costs, so the business makes neither a profit nor a loss.
Burn Rate
Burn rate is the pace at which a business, typically a startup, spends its cash reserves, usually measured as net cash spent per month.
Business Number (BN)
A Business Number is the unique nine-digit identifier the CRA assigns to a business, to which program accounts like GST/HST, payroll and corporate income tax are attached.
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