Small Business Accounting
Small business accounting services in Montréal — bookkeeping, financial statements, payroll and year-round tax support to help owners understand and grow their numbers.
Small business accounting in Québec means one combined GST/QST return, two corporate returns if you are incorporated, payroll remittances to two authorities, and a year-end that ties the books to both filings. The decisions that cost the most are made before year end, not at it.
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Key facts
| If incorporated | T2 federally and CO-17 in Québec, both due six months after fiscal year end |
|---|---|
| If unincorporated | Business income on the T1 and TP-1; June 15 to file, April 30 to pay |
| Sales tax | Registration required once taxable supplies exceed $30,000 over four consecutive quarters |
| Small business deduction | One limit shared across all associated corporations |
| Authorities | Canada Revenue Agency and Revenu Québec |
From incorporation to day-to-day bookkeeping, A&S Financials gives small-business owners a single CPA-led team for their finances. We keep your records current, produce financial statements you can actually use, run payroll, and handle your sales-tax and income-tax filings. More than a once-a-year accountant, we work with you throughout the year so you always know where your business stands and what is coming next.
Book a consultationWhat we offer
- Monthly or quarterly bookkeeping
- Financial statements and management reporting
- Payroll setup and processing
- GST/QST and source-deduction filings
- Owner compensation and tax planning
- Year-end and corporate tax preparation
Incorporating is a cash-flow decision before it is a tax one
A corporation is only worth its compliance cost when profit exceeds what the owner needs to draw. The advantage of the small business rate is deferral — tax is lower while the money stays in the corporation, and the balance is paid when it comes out. If everything comes out each year, the deferral never happens and you have added two returns, a payroll account and a set of financial statements for nothing. Where it does pay, it usually pays substantially: retained earnings compound at the corporate rate, the corporation can hold assets away from personal creditors, and shares of a qualifying small business corporation may be eligible for the capital gains exemption on a sale. The threshold is different for every business. It depends on profit, on how much the owner needs personally, and on whether there is a realistic exit.
Association is where the small business limit goes wrong
Corporations under common control, or linked through ownership chains or family relationships, are associated and share one business limit. Shares held by a spouse or a minor child count, and so do options over shares. Two apparently unrelated companies owned by two spouses can be associated. Filing separate allocations that together exceed the limit produces a reassessment for every corporation involved, usually a year or more after the fact. Québec adds an hours-worked test for its provincial small business rate, so a corporation can qualify federally and be assessed at the general provincial rate in the same year.
Frequently asked questions
Should I incorporate?
When do I have to register for GST/QST?
Can I pay my spouse a salary or dividend?
What can I actually deduct?
How do I choose a fiscal year end?
Speak with a Montréal CPA
Contact us to discuss your accounting and tax needs — in the language you prefer.