Canada Expanse from personal bank account

[fishinfall]

I have some business expanses like business registration, early inventory purchase using my personal bank accounts before I setup my business bank account.
Can those expanse be reported as my business expense directly or I have to 'convert' the expanse to my business bank account? Is there a way for those expanse to be reflected or be reconciled (I'm actually not even sure I'm using the right term) to business expanse account? Should I simply transfer the money from my business account to my personal account? (The tricky part is that I'm the owner of the business but I'm not a employee yet. So I'm not sure I can do reimbursement.) Thanks!

 

[Asha Kanta Sharma]

I think pre-business expenses can be claimed as deductions in the books of accounts subject to prevailing laws and regulations. You can debit such expenses and credit your capital account to books such expenses or you can also get re-reimbursed these expenses via a check/cash subject to laws and regulations as in force.

 

[Werner Reisacher]

Expenses you paid for starting up your business are tax-deductible under Candian Tax Law, provided that you incurred them in the fiscal period during which you carried on a business. The definition of the day, "when you started to carry on a business" is tricky. The following URL gives you more details about this crucial issue. (commencement of business activities)
If you do have cash vouchers etc. for purchases prior to having opened the business bank account, attach them to a "list of start-up" costs and treat them like you would handle a travel expense. Approved by an authorized officer and paid out of the company's bank account.
Whether you are an employee does not matter, as long as the person that signs the "start-up" expense report is authorized to commit the company.
Please make sure that you do not forget to file Form T2125 (small businesses) together with your first Income Tax Report to the Canadian Tax Authorities.

Business start-up costs - Canada.ca

Business start-up costs

www.canada.ca

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