Chart of Accounts

Chart of Accounts for Canadian Small Businesses

Start with iBill's CRA-aligned default chart of accounts or customize it for your business. Pre-built for Canadian tax compliance — no accounting knowledge required.

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What is a Chart of Accounts?

A chart of accounts is the master list of every financial account in your business. It organizes all your transactions into categories — assets, liabilities, equity, revenue, and expenses — so you can track where your money comes from and where it goes. Proper categorization is the foundation of accurate CRA tax reporting and reliable financial statements.

Master Account List

Every financial account your business uses — from your bank account to revenue to tax liabilities — organized in a single, structured list.

Numbered System (1000-7000)

Accounts follow a standard numbering convention: 1000s for assets, 2000s for liabilities, 3000s for equity, 4000s for revenue, and 5000-7000s for expenses.

Tax Compliance Foundation

Proper account categorization ensures your GST/HST, PST, and QST are tracked accurately — the foundation of correct CRA reporting at tax time.

Auto-Seeded by iBill

No manual setup required. When you first use iBill's accounting features, a complete chart of accounts is automatically created with all standard Canadian business accounts.

iBill's Default Chart of Accounts

A complete, CRA-aligned account structure that is ready to use from day one. Every account is pre-configured for Canadian tax compliance.

Assets 1000-1999 Assets

1100Accounts Receivable
1110Allowance for Doubtful Accountscontra
1200Bank / Cash
1600Capital Assets
1610Accumulated Depreciationcontra

Liabilities 2000-2999 Liabilities

2100GST/HST Payable
2110Input Tax Credits (ITC)
2200QST Payable
2220PST Payable (non-recoverable)
2400Unearned Revenue

Equity 3000-3999 Equity

3000Owner's Equity
3100Owner Drawscontra
3200Retained Earnings

Revenue 4000-4999 Revenue

4000Service Revenue
4100Other Revenue

Expenses 5000-7999 Expenses

5000Cost of Goods Sold
6000Operating Expenses
6600Vehicle Expenses
6900Depreciation Expense

Canadian-Specific Accounts

iBill includes dedicated accounts for every Canadian sales tax — so your books are always CRA-ready, no matter which province you operate in.

2100

GST/HST Payable

Tax collected on behalf of the CRA on every taxable sale. This liability account tracks exactly how much GST or HST you owe from your invoices until you remit it.

2110

Input Tax Credits (ITC)

GST/HST paid on business purchases — recoverable from the CRA. Track every dollar of tax paid on eligible expenses to reduce your net tax owing at filing time.

2220

PST Payable

Provincial sales tax for BC, Saskatchewan, and Manitoba. Unlike GST/HST, PST is non-recoverable — it is a real business cost that posts to this separate liability account.

2200

QST Payable

Quebec Sales Tax tracked in its own account, separate from GST. Quebec businesses charge and remit QST independently through Revenu Québec, so it needs its own GL line.

2400

Unearned Revenue

Advance payments received before the work is done. This liability account holds deposits and retainers until you deliver the service and recognize the revenue properly.

Customization Options

iBill's default chart of accounts covers most Canadian businesses. When you need more, customize it to fit your exact needs.

Add Custom Accounts

Create accounts specific to your industry — advertising, subcontractor fees, professional development, or any category your business needs.

Sub-Accounts

Break down broad categories into detailed sub-accounts. Split "Operating Expenses" into rent, utilities, insurance, and office supplies for better visibility.

Five Account Types

Asset, Liability, Equity, Revenue, and Expense. Each new account slots into the right type with the correct normal balance — iBill handles the accounting rules.

Auto-Seeded

Ready to use from day one. iBill creates your full chart of accounts automatically when you first access accounting. Customize only when you need to — not before.

Get Organized — Start with a Professional Chart of Accounts

CRA-aligned accounts, auto-seeded, ready to customize. No accounting degree required.

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Chart of Accounts FAQs

What chart of accounts should I use for my Canadian business?

iBill provides a pre-built chart of accounts designed for Canadian small businesses. It includes standard accounts for assets, liabilities, equity, revenue, and expenses — plus Canadian-specific accounts for GST/HST payable, PST, QST, and Input Tax Credits.

Can I add custom accounts in iBill?

Yes. While iBill provides a complete default chart of accounts, you can add custom accounts for your specific business needs. Create sub-accounts, rename existing accounts, or add industry-specific expense categories.

Does iBill automatically create a chart of accounts?

Yes. When you first use the accounting features, iBill automatically seeds a complete chart of accounts with all standard Canadian business accounts. No manual setup required — you can start recording transactions immediately.

How does the chart of accounts connect to my tax reports?

Every transaction posts to specific accounts in your chart of accounts. When you generate tax reports, iBill pulls from the tax-related accounts (GST/HST Payable 2100, PST 2220, QST 2200, ITC 2110) to calculate exactly what you owe or are owed.

Ready to organize your business finances with a proper chart of accounts?

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Your Books, Organized from Day One

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