Petty cash is a small amount of physical cash a business keeps on hand for minor expenses, controlled through a float and receipts to keep it accountable.
Petty cash is a small fund of physical cash for incidental costs, postage, small supplies, parking, that are impractical to pay by cheque or card. It is managed as an imprest float: a fixed amount that is topped back up to its set level periodically, with receipts accounting for every dollar spent.
Though small, petty cash needs controls, a custodian, receipts for every disbursement, and periodic reconciliation, because untracked cash is both a bookkeeping gap and a fraud risk. Each replenishment posts the expenses to the proper accounts, so petty cash spending still flows through the books.
A business keeps a $200 petty cash float. After $150 of small purchases with receipts, it replenishes $150 to restore the $200 float, recording the expenses to their categories at that point.
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Most municipalities do not take credit cards for property tax directly. They accept pre-authorised debit, online or telephone banking, cheque, and in-person payment. Third-party payment processors will charge a property tax bill to a card for a service fee, which normally costs more than the rewards earned. The CRA works the same way for income tax and GST/HST: no direct card payment, but authorised third-party providers accept cards for a fee.
A tax credit reduces the tax you owe, whereas a deduction reduces the income the tax is calculated on. Non-refundable credits, such as the basic personal amount or tuition, can bring tax down to nil but pay nothing beyond that. Refundable credits, such as the GST/HST credit, are paid out even when no tax is owing. Almost every credit is claimed on the return, so filing is what releases the money.
The business number is the single identifier the CRA uses for your business, with a separate programme account opened under it for each obligation: GST/HST, payroll deductions, corporate income tax, import and export. Register through Business Registration Online, by phone or by mail, or receive one automatically when you incorporate federally. You need it before you can remit payroll or file GST/HST. Provincial registration is separate in some provinces, notably Quebec, where Revenu Québec administers its own accounts.
CRA telephone lines run on weekday business hours in your local time, with extended and weekend hours on some individual lines during the personal filing season; the current schedule sits on the contact page for the line you need, and the lines close on public holidays. My Account, My Business Account and NETFILE run nearly around the clock, so viewing slips, filing a return or making a payment does not depend on call centre hours.
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Reviewed and fact-checked by Udit Gupta
Ex Big 4 — Ernst & Young, Deloitte · International & cross-border tax specialist · CPA Canada (In-Depth Tax Program) · Chartered accountant, ICAI & MIA
Udit Gupta has over 15 years of experience helping corporations and business owners with corporate structuring, corporate tax filing, bookkeeping, payroll, GST/HST, cross-border tax and CRA representation. Big 4 trained at Ernst & Young and Deloitte, and qualified as a chartered accountant in India and again in Malaysia, he founded his accounting practice in 2014 to serve entrepreneurs, startups and non-resident business owners across Canada. View full member bio.
The Institute of Chartered Accountants of India — member 521458 · Malaysian Institute of Accountants — member CA 44667 · Ex Big 4: Ernst & Young, Deloitte · CPA Canada (In-Depth Tax Program), completed 19 Dec 2023 · In-Depth GST/HST Part I, 12 Jul 2022 · Part II, 5 Jul 2023
Editorial policy. Every page is researched against primary sources — the Income Tax Act, CRA publications and CPA Canada guidance — and every rate or threshold is stated with the tax year it applies to.
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