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| *The Commerce Journal>>>Canada Taxes |
Is sales volume considered as income in accounting? |
I am preparing a small business tax return by myself. The return sales, if income less than c$200,000/-, one can file a simple tax return. I am not sure, if sales volume is considered as income? Thanks. In accounting and tax terms, income usually refers to net income or profit, after deducting expenses. I assume that you are referring to Canadian tax rules since you submitted your question under Taxes > Canada. In Canada, If your business is incorporated, then you have to prepare a T2 corporate tax return regardless of how much income was earned. The exception to this rule is that if the corporation had no income, or incurred a loss, then you may be eligible to complete the T2 short return. If your business is not incorporated, then you would complete form T2124 Statement of Business Activities, which would be filed along with your T1 personal income tax return. There is no specific rule regarding income below $200,000. Source(s): Professional accountant http://www.cra-arc.gc.ca/tax/business/to... thank all for kind answering I'm a US accountant, so I can't speak definitively about Canadian returns, but here in the US, if the government is talking about income less than $200,000, they're referring to "gross income", meaning income before any expenses. Does that help? I hope so! BTW, it's probably a good idea to hire an accountant for a small business tax return. It's amazing how complex these forms can be, and if you do make a mistake, it's even more complex trying to fix it. A tax professional is a business owner's best friend-she can help you through the tax maze and maybe find a few things you might miss. cpa Income would be the money that you have left after the sales that you made minus the cost of material/labor/whatever that went into the sale. So sales volume would not be income because that is before your expenses are taken out. When you subtract your expenses, that is your income. |
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