Bookkeeping software for Canadian sole proprietors, with a T2125 preview built in.
Pick "Sole proprietor" at signup and Ledg sets itself up for an unincorporated business: T1 and T2125 deadlines, Owner Draw labels, a calendar fiscal year, no minute book. Each entry you confirm is placed on its T2125 line, so when filing season arrives the draft Statement of Business or Professional Activities is already there, line by line, ready to hand to your accountant. Tax return submission is not available in Ledg today; your accountant files, or you do in your own tax software.
No credit card. Free with no entry limit. Built around Canadian tax rules.
Do the bookkeeping from the AI agent you already use.
On Solo, connect Claude, ChatGPT, or another supported AI agent. Show it a receipt: it saves the receipt and adds its tax breakdown and line items to the bank or statement transaction it belongs to. If that transaction has not arrived yet, the receipt waits and is matched when it does. No entry it writes reaches your statements or tax totals until you confirm it in Ledg. With your approval it can also update your business settings, and each change shows in Activity.
You: “How much did I spend on software this year?”
What changes when you pick Sole proprietor at signup.
T2125 preview, built straight from your ledger.
Each entry you confirm is placed on its T2125 line by category: Advertising (8521), Meals and entertainment at 50% (8523), Office expenses (8810), Motor vehicle (9281), CCA (9936). Open T2125 Preview to read the draft Statement of Business or Professional Activities line by line, and open a line to see the entries behind it. Download a watermarked preview PDF or a CSV zip, or email your accountant a link that works for seven days. Ledg does not file the return today.
T1 and T2125 deadlines, not T2.
Pick "Sole proprietor" at signup and Ledg shows the April 30 payment date and the June 15 filing date instead of corporate deadlines, plus GST/HST and PST dates if you are registered. No T2, no minute book, no dividend questions.
Owner Draw, not Owner Withdrawal.
The chart of accounts uses sole proprietor language: Owner Draw and Owner Investment instead of the corporate Owner Withdrawal and Owner Deposit. Both stay out of revenue and expenses on every statement, and out of Part 4 of the T2125.
GST/HST, from the day you register.
Until you register, Ledg records no GST/HST on your entries. When you register, switch on GST or HST registered in Settings: each entry then asks for its GST/HST, and Ledg totals what you collected and the input tax credits you paid, ready to enter in CRA My Business Account. The Handbook explains the $30,000 small-supplier rule.
Vehicle Charts A and C, built for you.
Enter total and business kilometres, and your monthly lease payment if you lease, in Settings under Tax Profile. Ledg builds Chart A from your Vehicle Expenses entries and prorates it by business use, and Chart C with the lease capped at $1,100/mo for 2026. Chart B shows the $350/mo interest cap; enter loan interest with your accountant.
Home office, by the detailed method.
In Settings, under Tax Profile, enter heat, electricity, insurance, maintenance, mortgage interest, property taxes and other costs such as rent, plus the floor area you use for business. Ledg applies your business-use share and the rule that the deduction cannot create a loss. The excess is shown as a carryforward to next year.
Capital cost allowance, Area A built from your ledger.
Categorize a purchase as Capital Asset, then give it a CCA class in Settings under Tax Profile (8, 10, 10.1, 12, 50, 54 and more). Ledg builds Area A: opening UCC, additions with the half-year rule or the accelerated first-year allowance, whichever applies to that tax year, and closing UCC. Sales of assets, recapture and terminal loss are left to your accountant. If you owned assets before Ledg, enter the opening UCC for each class once.
Calendar fiscal year, set for you.
A sole proprietor's fiscal period normally ends on December 31 (ITA s.249.1(1)(b)), so Ledg sets your fiscal year end to December 31 when you pick Sole proprietor. The election to keep a different year end (Form T1139) is not supported.
Receipts in your own Google Drive.
Every transaction can carry a receipt. Files live in your own Drive, in a folder Ledg creates; Ledg holds only the pointer. If you ever cancel Ledg, your receipts stay where they are.
Accountant handoff, three ways.
Download the watermarked T2125 preview PDF, download a CSV zip (summary, per-entry detail, warnings and a README), or email your accountant a link to the PDF that works for seven days. Each handoff is listed in the preview's history with its date and recipient. The handoff pack adds the general ledger, trial balance, GST/PST summary by quarter and bank reconciliation.
Sole proprietor questions, answered.
Not today. Tax return submission is not available in Ledg. Ledg keeps the books ready and builds a T2125 preview from your confirmed entries, and the handoff pack gives your accountant the general ledger, trial balance, GST/PST summary and bank reconciliation. You or your accountant file the T1 with the T2125. Filing from Ledg is planned, with your approval before submission. No date or price has been announced.
Until you register, Ledg records no GST/HST on your entries. You must register once your taxable revenue passes $30,000 in a single calendar quarter or over four consecutive calendar quarters (the CRA small-supplier threshold). Until then registration is optional. Ledg does not track the threshold for you. Once you register, turn on GST or HST registered in Settings and Ledg asks for GST/HST on every entry and totals what you collected and paid.
Yes. When you incorporate, you add the corporation as a new business under the same login and start a new set of books for it. Your sole proprietor books stay intact for your T1, and the T2125 preview keeps working for the years you operated as a sole proprietor. You switch between the two from the workspace menu. Each business has its own plan.
Enter total and business kilometres in Settings, under Tax Profile. Ledg builds Chart A (your Vehicle Expenses entries, prorated by business use) and Chart C (lease, capped at $1,100/mo for 2026). Chart B shows the $350/mo interest cap; enter loan interest with your accountant. CCA on the vehicle is worked out in Area A once you record the purchase as a Capital Asset and give it Class 10, 10.1, 54 or 55.
Yes, if you meet one of the CRA tests: the space is your principal place of business, or you use it only to earn business income and meet clients there regularly. In Ledg, use the detailed method: heat, electricity, insurance, maintenance, mortgage interest, property taxes and other costs such as rent, multiplied by your business-use share of the floor area. The deduction cannot create a loss; the excess carries forward to next year.
It follows the form line by line: every entry passes through a classifier first, so Owner Draw, Loan, Transfer and Tax Remittance entries stay out of Part 4 expenses. Capital assets go to Area A, vehicle entries go to Chart A, and meals count at 50% under s.67.1. Every preview carries a banner that says "This is not a filed return", because lines such as 8230 (other income, including recapture), 8290 (reserves) and 8590 (bad debts) are left for your accountant. Your accountant uses the preview as the starting point, not the final return.
Three formats. PDF: a watermarked preview covering identification, income, expenses, net income, home office, CCA, vehicle charts and equity. CSV zip: a summary, per-entry detail, warnings and a README. Email: the headline numbers, your note, and a link to the PDF that works for seven days. The handoff pack is a separate download: general ledger, trial balance, GST/PST summary by quarter, and bank reconciliation.
Yes. If you earn self-employment income in Canada and have not incorporated, you are a sole proprietor by default. Pick Sole proprietor at signup. You can add a business name in Settings later if you register one; it is not required to start keeping books for your T1 and T2125.
Read next for sole proprietors.
This page covers the form. If you freelance, the day-to-day side (receipts on the go, a day job beside the freelance work, Stripe and PayPal payouts, when to register for GST/HST) is on bookkeeping for Canadian freelancers.