Which category do my tools I buy for work go into? Saws, drills etc

Hi markoconnor007,

I applaud your entrepreneurial spirit, and it's so great to see that you've chosen QuickBooks Self-Employed to help keep track of your books. The program is ideal for busy people like yourself to make entries on the go. I can point you in the direction of the support you need.

Depending on the accounts you have set up, your tools could be entered differently. I suggest you reach out to your Accountant and discuss how you'd like to enter these. If you don't have one you currently work with, you can find one familiar with QuickBooks through Find a ProAdvisor. 

I wish you the best in your business endeavours. If you have any other questions, I'm here to help. Have a great day!

Hi Mark

Based on the CRA, tools over a certain cost threshold would be recorded as Class 8 Assets, meaning you would slowly expense their value over time through depreciation.

https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes-depreciable-property.html#Class8

The various flavours of QBO don't really have an auto-depreciation module, so what I tend to do is figure out the straight line depreciation, and have an automated/recurring entry that posts the expense and the asset-contra.  What I end up with is one account for the original value of the purchase, one for the depreciation postings, and a parent account that adds the two together.

Hope this helps!