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One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Terms of Service
Welcome to Castle! These terms of service outline the rules and regulations for the use of our bookkeeping services.
By accessing this website and using our services, you accept these terms and conditions in full. Do not continue to use Castle services if you do not accept all of the terms and conditions stated on this page.
Castle offers professional bookkeeping services including transaction categorization, reconciliations, financial reporting, GST/HST filing, and other related services as agreed upon with the client.
2. Billing and Payments
All services provided by Castle are billed on a recurring basis unless otherwise
agreed upon. Payments are due upon receipt of invoice. We accept payment via credit card, debit card, and electronic funds transfer.
3. Cancellation and Refund Policy
Clients may cancel services at any time by providing 30 days’ notice in writing or via email. Refunds for prepaid services will be prorated based on the remaining unused portion of the services.
4. Privacy Policy
Our privacy policy outlines how we collect, use, and protect your personal information. We do not sell or share your information with third parties without your consent, except as required by law.
5. Liability
Castle will perform all services with reasonable care and skill. However, we do not accept liability for losses resulting from acts of nature, third-party errors, or misuse of financial information or reports by the client.
6. Amendments
Castle reserves the right to amend these terms of service at any time. Amendments will be effective immediately upon posting on this website.
7. Contact Us
If you have any questions about this privacy policy or our privacy practices, please contact us at:
Castle
316 1st Ave NE
Phone: 587-872-0602
Email: info@bookwithcastle.com
One blog post closer to clean books.
Each blog post from the Castle team is packed with practical tips, real-world experience, and clear answers to common bookkeeping questions. Whether you're sorting expenses or planning for tax time, you'll find guidance to help you run your business with clarity and confidence.
Bookkeeping Basics for Small Business Owners — Part 3
Income Tracking: Recording What Comes In
For most small business owners, income feels straightforward: money comes in, you record it, done. But in bookkeeping, how you track income matters just as much as how much you earn. Recording revenue correctly helps you understand profitability, avoid tax mistakes, and keep cash flow predictable.
Why Income Tracking Matters
- Accuracy: If income isn’t recorded properly, your profit and tax filings will be wrong.
- Cash flow visibility: You’ll know when money is actually coming in — not just what’s promised.
- Decision-making: Tracking income by type (services, products, projects) shows you where you’re really making money.
Invoices and Sales Records
Every sale needs documentation. Depending on your business, that could be:
- Invoices (for services, contractors, B2B work)
- Receipts (for retail or product sales)
- Point-of-sale reports (from Shopify, Square, or Stripe)
👉 Keep copies of all invoices and receipts, either digitally or in organized folders. Missing records mean trouble if the CRA audits you.
Recognizing Revenue Properly
Here’s where many owners slip up:
- Cash accounting: You record income when you actually receive payment. (Simple, common for small businesses.)
- Accrual accounting: You record income when it’s earned, even if the customer hasn’t paid yet. (Gives a clearer financial picture, but more tracking.)
For example: If you invoice a client $5,000 in December but they don’t pay until January, under cash accounting you record it in January; under accrual, you record it in December.
Handling Discounts, Returns, and Bad Debts
Real life isn’t always full-price and on-time payments. Your books need to reflect reality:
- Discounts: Record the sale at the discounted amount, not full price.
- Returns/Refunds: Subtract the amount from income in the period the refund happens.
- Bad debts: If a customer never pays, write it off so your income isn’t overstated.
Separating Income Streams
If you offer multiple products or services, break income into categories. For example:
- Lawn care service income
- Landscaping project income
- Equipment rental income
This helps you see which part of your business is driving the most revenue (and which may not be worth the effort).
The Fix: Stay Consistent
The key to income tracking is consistency. Always record income the same way, with the same categories, and with proper documentation. This keeps your financial reports clean, accurate, and reliable.
The Bottom Line: Income isn’t just about the money you bring in — it’s about when and how you record it. Proper tracking gives you a true picture of your business’s health and helps you make better financial decisions.
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