Definitions for letter B (Business)

Bad debt

Money owed to you that you cannot collect.

Balance

The amount remaining in an account after recording all deposits and withdrawals.

Balance sheet

Statement of the financial position of a business. It states the assets, liabilities, and owners' equity at a particular point in time.

Basic tax content of a property

This generally means the amount of GST/HST that you paid on the property, and on any improvements to the property, less any amounts that were reimbursed to you (such as rebates or remissions, but not input tax credits (ITCs). You also have to consider the fair market value (FMV) of the property as well as the value at last acquisition (including any improvements). For more information, see chart, "ITCs for acquisition of capital personal property," in Guide RC4022, General Information for GST/HST Registrants.

Budget

A plan outlining an organization's financial and operational goals.

Business expenses

Certain costs that are reasonable for a particular type of business, and that are incurred for the purpose of earning income. Business expenses can be deducted for tax purposes. Personal, living, or other expenses not related to the business cannot be deducted for tax purposes.

Business Number (BN)

A number you get when you register to do any business with us. It is a single number which replaces the numbers that Canadian businesses previously needed to deal with the federal government.

Business relationship

A verbal or written agreement in which a self-employed individual agrees to perform specific work for a payer in return for payment. There is no employer or employee. The self-employed individual generally does not have to carry out all or even part of the work himself. In this type of relationship, a contract for services exists.