Can you claim an input tax credit on the provincial part of HST?

The federal component carries an input tax credit on eligible purchases; the provincial component on this engagement did not. Separating the two inside the reconciliation is what makes that visible, and because the rules are provincial-specific, the split has to be confirmed for the province the business actually operates in rather than assumed.

Is 15 to 20 transactions a month too small for outsourced bookkeeping?

No. This engagement ran at roughly 15 to 20 transactions a month and still needed monthly reconciliation, draft statements and a correctly split GST/HST position. Low volume changes how long the work takes, not what has to be done.

Why do you contact our suppliers and customers directly?

To confirm a balance before it is reconciled rather than after. Several vendor balances on this engagement did not match the client's own records, and confirmation emails to debtors and creditors were the only way to close them out; reconciling passively would have carried the mismatch forward.

Can you work in Sage and Xero at the same time?

Yes. Monthly bank feed reconciliation on this engagement ran across both Sage and Xero, with a separate expense sheet maintained and cross-checked against bank feed debits and the source vouchers.

Do you file the GST/HST return as well?

This engagement covered the reconciliation, not the filing. Where a return has to be submitted by a registered agent or by the business itself, that stays on the client's side; Salt's part is a GST/HST position that reconciles and can be filed without rework.

What arrives each month?

Reconciled bank feeds, a maintained expense sheet checked against bank debits and source vouchers, draft Profit and Loss and Balance Sheet statements, and a GST/HST reconciliation with the federal and provincial components separated. The statements are drafts because they are meant to be reviewed by the client and their accountant before anything is relied on.

Food & beverage · 🇨🇦 Canada

The provincial half of the credit that nobody could claim

A low-volume restaurant needed monthly books and correct handling of Canada's dual GST/HST structure — including which component carries an input tax credit and which does not.

Discuss a similar engagement

Canadian restaurant, roughly 15–20 transactions per month. Client identity withheld — we publish names only with written permission, so this engagement is described by its shape rather than by who it was.

Engagement: Monthly bookkeeping
Software: Sage · Xero
Jurisdiction: Canada
Sector: Food & beverage

The situation

A low-to-moderate volume business, roughly 15–20 transactions a month, needed reliable monthly bookkeeping and a clear view of what was owed to and by the business.
It also needed correct handling of Canada's dual GST/HST structure, including the provincial-versus-federal input tax credit rules.

What we did

Performed monthly bank feed reconciliation across Sage and Xero.
Sent confirmation emails to debtors and creditors to verify balances before reconciling.
Maintained a detailed expense sheet, cross-checked against bank feed debits and source vouchers.
Prepared draft monthly Profit & Loss statements and Balance Sheets.
Reconciled GST/HST, separating the provincial component — where no input tax credit is available — from the federal component, where credit is available on eligible purchases.

Why we were the right fit

Restaurant bookkeeping carries a high proportion of small, cash-adjacent transactions and vendor relationships that need active confirmation. Comfort with direct debtor and creditor outreach, rather than passive reconciliation, is what made the difference.

The outcome

Consistently accurate monthly financials.
A GST/HST reconciliation that correctly applied provincial-specific input tax credit rules — an area that is easy to get wrong and costly to miss.

What we'd flag

Provincial and federal GST/HST components needed separate treatment for credit eligibility, and several vendor balances did not initially match the client's own records. Those had to be confirmed directly with the vendor before they could be closed out.

Answers

The provincial half of the credit that nobody could claim

Where this applies

BookkeepingService Sales Tax · VAT · GSTService All services in CanadaASPE / IFRS More case studies7 anonymised engagements

Start with a number

Recognise any of this in your own books?

Tell us where you trade and what shape the books are in. You get scope, price and a start date in writing within one business day — no obligation.

Get a quote in 24 hoursBook a call instead