07/09/2026
A $7,000 GST/HST mistake that could have been avoidedβ¦
A few days ago, we had a conversation with a restaurant owner here in Halifax that reminded us why accurate bookkeeping matters so much.
This business owner was hardworking. Like many entrepreneurs, he was trying to manage everything himself β running the restaurant, managing expenses, and taking care of his own bookkeeping.
For the 2024 GST/HST filing period (January to December 2024), his business received a GST/HST refund of approximately $7,000.
The refund was processed and deposited into his bank account in June 2025.
When preparing his 2025 books, he saw the deposit and recorded it as GST/HST collected for the 2025 filing period.
At first glance, it looked like a normal bank transaction.
But there was one problemβ¦
That $7,000 was not new GST/HST collected from customers.
It was a refund related to the previous filing period.
Because it was incorrectly recorded as GST/HST collected, it increased his GST/HST payable for 2025 by approximately $7,000.
A single accounting mistake had a $7,000 impact.
The business owner contacted us because he noticed something didnβt feel right. His sales were around $200,000 for 2025, but the GST/HST amount he calculated seemed unusually high.
We reviewed his books, traced the transaction, identified the issue, and corrected the GST/HST treatment to make sure he was not paying more than he actually owed.
The lesson?
Bookkeeping is not just entering numbers into software.
It is understanding why transactions are recorded, how they affect your financial statements, and how they impact your GST/HST filings.
Many business owners try to save money by managing their own bookkeeping. Sometimes it works. But one small mistake can cost much more than the cost of having accurate books throughout the year.
At Click2Biz Inc., our goal is not just to record transactions.
Our goal is to help business owners understand their numbers, avoid costly mistakes, and focus on growing their business.
Your time is worth more than your bookkeeping.
π Click2Biz Inc.
Helping Canadian small businesses stay organized, accurate, and prepared.