Bookkeeping for Delta businesses, kept current every month

GST comes back, PST usually does not

The first thing a Delta ledger needs is two separate tax accounts. GST paid on fuel, repairs, packaging or materials is normally claimed back as input tax credits on the GST return. PST paid on the same kinds of purchases is generally not recoverable, so it belongs in the cost of the item, not in a tax account. A ledger that lumps the two together overstates the GST you can claim and understates your real costs.

We set the chart of accounts up so the split happens when the bill is entered, not at filing time. GST collected and GST paid net out on the GST34 return. PST collected goes to the province on its own return and its own schedule.

Zero-rated sales and refund returns

Delta’s greenhouses and field farms sell produce that is mostly zero-rated for GST. No GST is charged on those sales, yet GST paid on inputs can still be recovered. The result is often a GST return that shows a refund every period, which the CRA tends to review more closely than a return showing tax owing.

Refund returns hold up when every claimed input ties to an invoice with the supplier’s GST number and is coded to the right period. That is bookkeeping work, done monthly, not something to reconstruct when a review letter arrives. The greenhouse page covers the wider tax picture for growers.

Loads, fuel cards and settlement statements

Trucking companies working the Roberts Bank terminals and the Tilbury warehouses get paid in batches. A broker or shipper settlement can cover dozens of moves, net of fuel surcharges, chargebacks and advances. Booking the net deposit as revenue hides all of it. We record the gross revenue and the deductions separately, so each truck’s revenue and fuel cost are visible month by month.

Fuel cards, tolls and repair invoices are coded to the unit they belong to. That makes the year-end CCA schedule and any fuel tax reporting much easier. More on the trade is on the Delta trucking page.

Loads that cross into Washington State are often paid in US dollars. The invoice is recorded at the exchange rate on the day it is issued, and the payment at the rate on the day it lands. The difference is a foreign exchange gain or loss, kept in its own account rather than buried in revenue. Over a year of cross-border runs, that line can be large enough to matter.

Stock, raw materials and work in progress

A food processor or fabricator on Annacis Island carries raw materials, partly finished goods and finished stock at the same time. The ledger needs a value for each, and the cost of goods sold depends on those values being right at month-end. We reconcile purchases against stock movements and flag the gaps before they turn into a year-end surprise. The year-end inventory count explains what the count has to capture.

Progress draws and holdbacks for contractors

Contractors in Tsawwassen, Ladner and North Delta bill in stages, and the owner keeps a holdback on each draw. The ledger has to track each draw invoiced, the GST charged on it, and the holdback still receivable. It also has to collect subcontractor details for the T5018 return. Construction holdbacks works through the entries, and the Delta contractor page covers PST on installed materials.

Payroll costs in the month they belong to

Wages are only part of what an employee costs. The employer share of CPP and EI premiums, vacation pay accruing each pay, and WorkSafeBC premiums all belong in the same month as the wages. Seasonal greenhouse crews and shift workers in a plant make that matching harder, because headcount moves through the year. We post the full employer cost each month and reconcile the payroll liability accounts to what was actually remitted to the CRA. The Delta payroll page covers running the pay itself.

Catching up on books that fell behind

A busy shipping season or a long harvest is how most Delta books fall behind. Statements pile up, a GST return goes in late, and the year-end arrives with six months unreconciled. We start with the oldest open month, reconcile forward, and file anything overdue in order. Catch-up work is quoted as a fixed amount before the work starts, separately from the monthly fee.

Remote bookkeeping from Abbotsford

There is no Delta office. Bank and card feeds come in electronically, and receipts and statements arrive through a secure upload link, often photographed on a phone. Questions go by email and are answered by the CPA who keeps your books. The ledger lives in cloud software you can open any time; QuickBooks or Xero both work.

The monthly routine, and what it costs

Each month: bank and card accounts reconciled, bills and sales coded, GST and PST balances checked, and a short profit and loss sent to you. Each filing period: GST and PST returns prepared and filed. Each year: books closed for the T2, with adjustments posted. Monthly bookkeeping for Delta businesses starts at $300 a month with GST and PST filing included, and the fee is fixed before work begins; see published pricing. The monthly bookkeeping checklist shows the routine step by step.

How often the GST return is due depends on revenue. Annual filing is the default up to $1.5 million of sales, quarterly up to $6 million, and monthly above that. A greenhouse expecting refunds can often choose to file more often than required, so the GST it paid comes back sooner. PST runs on its own reporting period set by the province. Both go into one calendar, so neither is missed when the season gets busy.

Family businesses in Ladner and East Delta often run personal and business money through the same accounts. A farm truck fuelled on the business card for a weekend trip, or a household bill paid from the company account, has to be recorded as a draw or a shareholder loan, not a business expense. We flag those entries monthly, which keeps the shareholder loan account honest and the year-end adjustments small. Separating business and personal finances sets out the habits that help.