Useful information for local contractors.

Do you own and operate a contracting firm?

  • Plumber
  • Electrician
  • Carpenter
  • Drywaller
  • Stonemason
  • HVAC business

These are very profitable businesses and businesses that use both direct material and direct labor in their services to customers.  Record keeping is essential for a number of reasons:

  1. Are you sure you are pricing out your service properly?
  2. Are you marking up your direct material by a factor to compensate for your searching, purchasing and installing of this material on client jobs?
  3. Do you know what your gross profit margin is on your business?
  4. Is your business profitable?
  5. Does your business have the cash flow to support the activity?
  6. Are you keeping your statutory remittances current?
  7. Is your year end record keeping an easy process or, is it the only time you get to see how well (or how poorly) your business performs?

Remember that you can have several types of statutory remittances to file:

  1. Monthly payroll remittances to the CRA for your employees.
  2. Quarterly Harmonized Sales Tax (HST) remittances to the CRA.
  3. Monthly corporation tax remittances to the CRA if your business is incorporated and profitable.
  4. Workplace Safety Insurance Board (WSIB) remittances to pay based on your industry classification.
  5. Annual T1 income tax return for an unincorporated business.
  6. T2 corporation tax return for an incorporated business.

This represents a lot of paperwork and filings. Do not let your paperwork fall behind.

 

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