Ledg vocabulary, plus the Canadian accounting words.

Product vocabulary. The words Ledg uses for its surfaces and flows.

• CommitConfirming a reviewed row so it moves from Stage to the Ledger. A short undo banner follows each commit.
• ConnectorThe Ledg connection inside Claude or ChatGPT. It reads your books and can record purchases and receipt details into Stage, never straight into your books.
• DeadlinesLedg's tax calendar at /dashboard/tax-calendar. Works out the dates that apply to your filing profile: T2 or T1 with T2125, GST/HST, PST, T4, T5 and the BC Annual Report.
• Handoff packOne download for your accountant: general ledger, trial balance, GST/PST summary by quarter, and bank reconciliation, built from your confirmed entries.
• LedgerIn the HandbookThe confirmed transaction history for your business, viewed at /dashboard/transactions. Only confirmed entries reach statements, tax totals and the handoff pack.
• MCP (Model Context Protocol)The open standard an AI agent uses to reach another tool's data. Ledg runs an MCP server, so Claude or ChatGPT can work with your books.
• PerformanceLedg's reports view at /dashboard/reports, called Pulse before September 2026. Profit and loss year to date, a tax summary, income against expenses, and an expense breakdown.
• StageWhere new entries wait before they count: bank transactions, receipts recorded by your connected AI agent, and entries you add by hand. Edit, categorize, or delete. Nothing touches a statement or tax total until you confirm it.
• T2125 PreviewA sole proprietor's confirmed entries laid out part by part with the CRA line numbers, at /dashboard/tax/t2125. A preview, not a filed return.

Core double-entry bookkeeping concepts that apply in any jurisdiction.

• Accounting equationIn the HandbookAssets = Liabilities + Equity. The identity every balance sheet must satisfy.
• Accrual basisIn the HandbookRecording revenue when earned and expenses when incurred, regardless of when cash changes hands.
• Balance sheetIn the HandbookA financial statement showing what the corporation owns (assets), what it owes (liabilities), and the owner's residual equity at a point in time.
• Cash basisIn the HandbookRecording revenue when cash is received and expenses when cash is paid. Simpler but generally not permitted for Canadian corporations.
• Chart of accountsThe organized list of every account a business uses to classify transactions. Ledg ships with a default chart for one-person businesses that maps to GIFI.
• CreditIn the HandbookAn entry recorded on the right side of an account. Decreases assets and expenses; increases liabilities, equity, and revenue.
• DebitIn the HandbookAn entry recorded on the left side of an account. Increases assets and expenses; decreases liabilities, equity, and revenue.
• DepreciationAllocating the cost of a long-lived asset over its useful life. For Canadian tax, use Capital Cost Allowance (CCA) instead.
• Income statementIn the HandbookA financial statement summarizing revenue, expenses, and net income over a period. Also called the Profit and Loss statement.
• Journal entryIn the HandbookA dated record of a financial transaction showing equal debits and credits across two or more accounts.
• Normal balanceIn the HandbookThe side (debit or credit) on which an account ordinarily carries a positive balance. Assets and expenses are normal-debit; liabilities, equity, and revenue are normal-credit.
• Trial balanceIn the HandbookA point-in-time listing of every account balance. Used to confirm total debits equal total credits before preparing financial statements.

Canadian corporate tax vocabulary. T2, CCPC, dividend pools.

• Capital Dividend AccountIn the HandbookA notional account tracking the tax-free portion of capital gains realized by a CCPC. Balances can be distributed to Canadian-resident shareholders as tax-free capital dividends.
• CCACapital Cost Allowance. The tax-side depreciation system in the Income Tax Act. Assets are grouped into classes with fixed declining-balance rates.
• CCPCIn the HandbookCanadian-Controlled Private Corporation. A private corporation resident in Canada not controlled by non-residents or public companies. Unlocks the Small Business Deduction.
• CRACanada Revenue Agency. The federal body that administers income tax, GST/HST, payroll source deductions, and most credits.
• GIFIIn the HandbookGeneral Index of Financial Information. CRA's standardized chart of accounts codes used in the T2 return. Ledg maps your accounts to GIFI automatically.
• GRIPIn the HandbookGeneral Rate Income Pool. Tracks income taxed at the general corporate rate in a CCPC. Eligible dividends can only be paid out of GRIP.
• Half-year ruleIn the HandbookIn the year of acquisition, most CCA classes allow only half of the normal CCA claim, regardless of acquisition date.
• LRIPIn the HandbookLow Rate Income Pool. Tracks income taxed at the low rate in a non-CCPC. Must be paid out first as a non-eligible dividend.
• RDTOHIn the HandbookRefundable Dividend Tax On Hand. Tax paid by a CCPC on investment income that is refunded when taxable dividends are paid to shareholders.
• Shareholder loanA loan from a shareholder to their corporation (or vice versa). Under ITA 15(2), a loan from the corporation to the shareholder is added to the shareholder's income unless it is repaid within one year after the end of the corporation's tax year in which it was made.
• Small Business DeductionIn the HandbookReduced federal corporate tax rate on the first $500,000 of active business income earned by a CCPC. Combined with provincial rates of roughly 9-13%.
• T2 returnIn the HandbookThe federal corporate income tax return. Every incorporated Canadian corporation files annually, even when inactive.

Personal tax terms that touch a 1-person corporation owner.

• Eligible dividendIn the HandbookA dividend paid from income taxed at the general corporate rate. Carries a higher gross-up and dividend tax credit than non-eligible dividends.
• Salary vs dividendsIn the HandbookThe choice every 1-person corp owner makes: pay yourself via a T4 salary (creates RRSP room, CPP) or non-eligible dividend (no payroll admin, no CPP).
• T1 returnIn the HandbookThe federal personal income tax return. Owners of a 1-person corporation file a T1 plus the corporation's T2.
• TOSIIn the HandbookTax on Split Income. Rules that apply the top marginal rate to income split to a related party from a private corporation, unless an excluded-amount exception applies.

Federal and provincial sales tax vocabulary across the 13 provinces and territories.

• GSTGoods and Services Tax. The 5% federal value-added tax on most supplies of goods and services in Canada.
• HSTHarmonized Sales Tax. A single combined federal and provincial rate in ON (13%), NS (14% since April 1, 2025), and NB, NL and PE (15%). Administered by CRA.
• ITCIn the HandbookInput Tax Credit. The GST or HST paid on business inputs that a registrant claims back on its GST return, so the business only remits tax on net value added.
• PSTIn the HandbookProvincial Sales Tax. A separate retail sales tax charged in BC (7%), SK (6%), and MB (7%). Not a value-added tax, no input credits.
• QSTQuebec Sales Tax. A 9.975% value-added tax in Quebec, administered separately from GST by Revenu Quebec.
• Small supplierIn the HandbookA business with under $30,000 in worldwide taxable supplies over four consecutive calendar quarters. GST registration is optional until the threshold is crossed.

Payroll-specific vocabulary if you pay yourself a salary.

• CPPIn the HandbookCanada Pension Plan contributions. Deducted from salary and matched by the employer. A corporation owner pays both halves on any salary to themselves.
• EIIn the HandbookEmployment Insurance premiums. Generally does not apply to a 1-person corporation owner because they control the corporation. Available voluntarily for certain benefits.
• T4 slipIn the HandbookThe slip issued by an employer showing annual employment income and source deductions for a calendar year. Filed by February 28 of the following year.

Things under the hood: where Ledg runs, how data flows, the integrations.

• PIPEDAPersonal Information Protection and Electronic Documents Act. Canada's federal private-sector privacy law. Ledg stores data to align with PIPEDA obligations.
• PlaidThe bank aggregation API Ledg uses to sync transactions. Covers RBC, TD, Scotiabank, BMO, CIBC, and major Canadian credit unions.