Income
Not all deposits are income. CanCat helps you sort them quickly. Your accountant needs to track where your money comes from to calculate taxes correctly:

• Freelance income (1099) – Payments from clients, contract work, gig platforms
• Employer income (W2) – Traditional jobs with tax withholding
• Cash payments – Tips, direct client payments, peer-to-peer transfers
• Other income – Rent, investments, selling goods online

Business Deductions
Expenses directly related to running your business that can reduce your taxable income. 

Examples:

• Software subscriptions for work
• Office supplies and equipment
• Professional development courses
• Marketing and advertising costs

Personal Deductions
Tax-deductible personal expenses can also reduce your taxes. 

Examples:

• Charitable donations
• Medical expenses
• Mortgage interest
• State and local taxes paid

Split Expenses
Some expenses are partly business, partly personal.

For example:

• Cell phone (if used for work and personal)
• Home internet (for remote work)
• Home office space

Why Your Accountant Needs These Reports
Your accountant uses these categorized income and expenses to:

• Determine your “taxable income”
• Maximize your eligible tax deductions
• Ensure compliance with tax laws
• Calculate your quarterly tax payments accurately
• Provide documentation if needed for the IRS