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Expenses & T2125

Self-employed expense tracker for Excel: a full Canadian year, filled in

2026 figuresSources: canada.ca

  • 22T2125 expense lines in a dropdown, totalled for you
  • 13provinces and territories: pick yours and the GST/HST rate fills in
  • $19one time, for Excel and Google Sheets
What it does

Type it once, get the totals

You enter each invoice and each receipt once. The tracker splits out the GST/HST, sorts expenses by T2125 line, applies the 50% meals limit and your business-use percentage, and adds it all up by month. It doesn’t work out your CPP or income tax.

Made-up example

Every number on this page belongs to a hypothetical freelance designer in Ontario that we invented. It’s not a real customer and not anyone’s real results. The totals are what the tracker’s own formulas give for these made-up entries: we typed them into a copy of the file and let it recalculate.

If you’re self-employed in Canada, the CRA expects a record of your daily income and expenses, but it won’t hand you a template. In T4002 it says it doesn’t issue record books or suggest any particular kind. So most people end up in a spreadsheet.

This page walks through one whole year in ours, from the first invoice to the amount to set aside, so you can decide whether it’s worth $19 or whether a blank sheet will do.

What’s in the file

Settings

Pick your province or territory and say whether you’re registered for GST/HST. The rate fills in (0% if you’re not registered).

Income

One row per invoice: date, client, amount before tax. The GST/HST and the total are worked out for you. A rate override handles a sale taxed at a different rate.

Expenses

One row per receipt. Pick the T2125 line from a dropdown, add the GST/HST you paid and, if it’s partly personal, your business-use percentage.

Summary

Monthly income, GST/HST collected, deductible expenses, estimated ITCs, net income and net GST/HST. Below that, a total for every T2125 line.

Categories

The 22 T2125 expense lines the dropdown uses, with their line numbers.

Instructions

How to fill it in, and a plain list of what it doesn’t do.

It’s one .xlsx file. Open it in Excel, or upload it to Google Drive and open it with Google Sheets. The Income and Expenses tabs each have room for 500 rows.

The example year: $72,000 invoiced

Our made-up designer works from home in Ontario and is registered for GST/HST, so they charge 13% HST. In the Settings tab, that’s two choices.

Made-up exampleSettings tabTwo choices
Province or territoryOntario
Registered for GST/HST?Yes
Rate (fills in)13%

One agency pays a $3,000 retainer every month, and two other clients send project work. Over the year that’s 24 invoices: $72,000 before tax and $9,360 of HST collected. You never type the HST yourself. It comes from the rate in Settings, rounded to the cent.

Made-up exampleIncome tabFirst 3 of 24 invoices
DateClientBefore taxHSTTotal
2026-01-01Agency AMonthly retainer3,000.00390.003,390.00
2026-01-20Company BProject invoice1,500.00195.001,695.00
2026-02-01Agency AMonthly retainer3,000.00390.003,390.00
You type the date, client and amount. The shaded columns are formulas.
Made-up exampleSummary tab: income by monthTotal $72,000.00 before tax
The busiest month is October ($8,000); the slowest is July ($4,000).

Expenses, sorted by T2125 line

Every receipt gets its own row. You pick the T2125 line, and the tracker applies two rules from T4002, Chapter 3 for you: meals and entertainment count at no more than 50%, and you only claim the business part of anything you also use personally.

Made-up exampleExpenses tab2 of 45 receipts
DateWhat and lineBefore taxHST paidDeductibleEst. ITC
2026-01-28Mobile phone, one month9220 Utilities: you entered 60% business use125.0016.2575.009.75
2026-10-08Client dinner8523 Meals and entertainment: 50% limit applied for you500.0065.00250.0032.50
The phone counts at the 60% you entered. The dinner counts at 50%, for the expense and for the ITC.

It uses the amount before tax because, as a registrant, the HST you get back as an ITC isn’t also an expense. T4002 tells you to reduce your expenses by any ITC you claim.

Made-up exampleSummary tab: by T2125 lineFull year
T2125 lineIn this exampleDeductibleEst. ITC
8521 AdvertisingPortfolio ads$600.00$78.00
8523 Meals and entertainment (50%)Two client meals ($800 spent)$400.00$52.00
8690 InsuranceLiability insurance (no HST on it)$900.00$0.00
8710 Interest and bank chargesBank fees, $20 a month$240.00$0.00
8760 Business taxes, licences and membershipsDesign association membership$400.00$52.00
8810 Office expensesPaper, ink, postage$400.00$52.00
8860 Professional fees (legal, accounting)Accountant$1,200.00$156.00
9200 Travel expensesConference trip$2,300.00$299.00
9220 UtilitiesMobile phone, 60% business ($1,500 spent)$900.00$117.00
9270 Other expensesDesign software, $200 a month$2,400.00$312.00
9945 Business-use-of-home expensesHome office: an amount you work out yourself$2,260.00$0.00
Total45 receipts$12,000.00$1,118.00

The home office line is yours to work out. The tracker doesn’t calculate business-use-of-home, vehicle or capital cost allowance amounts. You work those out on Form T2125 and type the result in, like the $2,260 here.

GST/HST: collected, claimed back, owed

The Summary tab puts the HST you charged next to the HST you paid on business expenses, month by month. The difference is roughly what you’ll send the CRA.

Made-up exampleSummary tab: GST/HSTFull year
HST you collected13% of $72,000
$9,360.00
Minus estimated ITCsHST you paid on business expenses
− $1,118.00
Net GST/HST to remit
$8,242.00

The ITCs are estimates. You claim them on your GST/HST return, and only with receipts that show what the CRA asks for. If you file once a year as an individual with a December 31 year-end, the payment is due April 30, 2027 (CRA deadlines).

How much to set aside

The tracker gives you your profit: $72,000 in, $12,000 of deductible expenses, $60,000 left. It stops there. For CPP and income tax you use the CPP rates and tax brackets on canada.ca. Our guide to setting money aside works through this exact $60,000 Ontario example.

Made-up exampleWhat to set aside for 2026Three separate amounts
From the tracker$8,242.00Net GST/HST

$9,360 collected minus $1,118 of ITCs.

You work it out$6,723.50CPP

($60,000 profit − $3,500) × 11.9%.

You work it out$7,879.43Federal + Ontario tax

Worked through in the set-aside guide.

Total$22,844.93About $1,903.74 a month

GST/HST + CPP + income tax, spread over 12 months.

This is an estimate. The income tax figure assumes no other income and only the basic credits. RRSP contributions, other income or other credits would change it.

A free spreadsheet, the CRA’s guidance, or the tracker

You don’t have to buy anything to keep good records. Here’s how the three options compare.

What you needCRA guidanceA blank spreadsheetThis tracker
What records to keepSpelled out in T4002: date, amount and source of each sale; receipts with the date, seller and description; keep them 6 yearsUp to youNot a substitute: you still keep the receipts and invoices
A layout to fill inNone official. The CRA says it doesn’t issue or suggest a record book; a book with columns and separate pages for income and expenses will doYou build the columns and formulasIncome and Expenses tabs ready, 500 rows each
T2125 linesLine-by-line rules in T4002, Chapter 3You type the lines and total them yourselfDropdown of 22 lines, a total for each on the Summary tab
GST/HSTRates by province and ITC rulesYour own formulasRate fills in from your province; collected, ITCs and net, by month
50% meals, business-use %Rules in T4002Your own formulasApplied on every row
CPP and income taxRates on canada.caYour own formulasNot included
PriceFreeFree$19 CAD one time

If you’re comfortable writing SUMIF formulas and keeping your own list of T2125 lines, a free spreadsheet plus T4002 does the job. What the tracker saves you is the setup and the formula checking. Whatever you use, the CRA wants electronic records kept in a readable format, backed up, for 6 years.

What it won’t do

  • Work out your CPP, income tax or instalments
  • Track PST, RST or QST (it tracks GST/HST only)
  • Handle the Quick Method of accounting for GST/HST
  • Calculate capital cost allowance, home office or vehicle amounts (you work those out and type in the result)
  • File anything with the CRA, or replace your receipts

Get the tracker

Start your own year, without building the sheet

The same file as in the example, empty and ready: income, expenses by T2125 line, GST/HST and monthly totals. If it doesn’t work for you, ask within 14 days for a full refund, using the help link in your Stripe receipt.

Get the tracker: $19 CAD

$19 CAD one time · Excel and Google Sheets · instant download

FAQ

Is it an Excel template or a Google Sheet?

It’s an .xlsx file. It opens in Excel, and you can upload it to Google Drive and open it with Google Sheets.

Does it work if I’m not registered for GST/HST?

Yes. Choose No in Settings and the rate becomes 0%, so it skips the GST/HST. You still get your income, your expenses by T2125 line and your monthly profit.

Does it work in Quebec, BC, Manitoba or Saskatchewan?

It tracks the 5% GST in those provinces. It doesn’t track PST, RST or QST, so you’d keep those separately.

What if I use the Quick Method?

The tracker estimates regular ITCs and doesn’t model the Quick Method. It still totals your sales and GST/HST collected, which you’d need either way.

Will the CRA accept a spreadsheet as my records?

The CRA doesn’t require any particular book or software. Your records have to be complete, backed by documents like receipts and invoices, and kept for 6 years. Electronic records have to stay readable. See keeping records.

Is the designer in the example a real customer?

No. The designer and all the numbers are made up to show how the file works. The totals are what the tracker’s formulas give for those made-up entries.

Sources

Not tax advice. This page shows how a spreadsheet works, using a made-up example. Your own amounts, credits and rules may differ. Check CRA guidance or talk to a qualified accountant.