3 Canadian tax & accounting terms starting with O
Plain-language definitions, each with the CRA rule it comes from and the filings it affects.
Operating Expense (OpEx)
An operating expense is a day-to-day cost of running a business, such as rent, salaries and utilities, deducted in full in the period it is incurred.
Overhead
Overhead is the ongoing cost of running a business that is not directly tied to producing a specific product or service, such as rent, administration and insurance.
Owner's Draw
An owner's draw is money a sole proprietor or partner takes out of the business for personal use, which is not a deductible expense and not a salary.
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