Software Subscriptions as Business Expenses
The Canada Revenue Agency (CRA) allows businesses to deduct expenses that are incurred to earn income. Software subscriptions used for business purposes generally fall into this category.
According to CRA guidelines, software subscriptions are typically considered current expenses, meaning they can be fully deducted in the year they are incurred. This includes tools such as:
- Customer Relationship Management (CRM) software
- Financial analysis and pre-qualification tools
- Communication and client intake platforms
- Marketing and lead generation tools