Getting Started: Corp Income & Expenses

In the Corporate Income & Expenses Section we want to map out future income and expenses for each corporation. We also want to separate them into active income/deductions and passive income/deductions. This data forms the foundation for projections and cash flow modelling.

The salary numbers entered in the Discovery > Income Section have auto populated, but the rest of the information must be done with manual overrides.

Overrides can be entered by clicking on any "Blue" number. Overrides appear in "Red" once entered as seen below.

Similar to the Future Cash Flow Section, different income and expenses can be entered for specific scenarios. You can change the scenario you are editing but selecting the dropdown at the top of the page.

Both Income and Expenses are shown in future dollars in the table and includes the effect of inflation.

Active Income & Expenses

Active income includes revenue generated from business operations.

Salary information entered in the Discovery Income Section automatically populates here. Additionally, the platform calculates Canada Pension Plan (CPP) and Employment Insurance (EI) contributions associated with these salaries.

You can enter the gross revenue and deductible/non-deductible expenses by entering an override. Once the override is entered click 'Recalculate' to save the changes.

Before Override:

Override:

After Override:

A summary of active business income cash flow (cash available after expenses) and taxable income (gross revenue - deductible expenses) is shown here:

Passive Income & Expenses

Passive Income refers to earnings generated with little to no active involvement in the operations generating the income. This income typically arises from passive assets (eg: rental income) rather than from active business activities.

We want to capture your expected passive corporate income as well as any deductible expenses. These expenses do not include debt servicing costs as this is captured in the Corp. Assets & Debt Section.

You can enter the gross rental income and expenses by entering an override. Do not include debt servicing costs in these expenses, as these are captured by the Corp. Assets & Debt Section. Once the override is entered click 'Recalculate' to save the changes.

Before Override:

Override:

After Override: