Specialized tax & accounting services

We know how busy entrepreneurs can be and so we are offering a wide range of bookkeeping services tailored specifically to your business needs and transaction volume. This way, you no longer have to worry about maintaining spreadsheets or organizing receipts.

Our bookkeeping plans can include the following:

• Recording transactions
• Reconciling bank or credit card accounts
• Processing payroll
• HST & WSIB filing
• Preparing tax packages
• Periodic meetings with clients to discuss financial performance

Through our work with business clients across various industries, we identified common challenges business owners face with the administrative side of operations. By implementing innovative and efficient bookkeeping systems, we were able to address these issues, leading to both cost savings and improved operational efficiency for our clients.

Hybrid bookkeeping arrangements, where clients manage certain tasks under our guidance while we complete the rest, are growing in popularity. This model helps to reduce administrative costs and provides business owners with clearer insights, making it easier for them to make informed decisions.

At Taxter, we strongly believe that modern businesses should go digital and keep as few paper documents as possible. We have designed our processes in a way that allows us to work with clients remotely and keep the essential documents in a digital format. This way, it is much easier to retrieve the documents in case they are needed in the future. For instance, responding to review requests from the Canada Revenue Agency may seem overwhelming if multiple years are under review and a client has to go through thousands of receipts.

The solutions we recommend provide excellent real-time data you will find very useful when assessing the financial performance of your organization. With us, you no longer have to wait until the next year to check how your business is doing.

Click here to check out our bookkeeping plans & pricing

Analysis of financial performance is essential to long-term success of every single business. Financial statements prepared in accordance with general principles will provide entrepreneurs with valuable insights about their company’s past performance, current financial position and predictions for the future.

In addition to receiving a complete set of financial statements, our clients will also receive findings of our comparative analysis performed when preparing the financial reports. The findings include highlights of activities that provide the highest profits as well as areas of your business that have potential for improvement.

The information included in the financial statements will be a critical tool to measure success of your business and identify any areas which may require improvement. It is very important to get access to this information as soon as possible, as this allows you to take corrective action without delay.

As a registered member in good standing with CPA Ontario, we will issue annual Financial Information reports acceptable to most banks/creditors. These reports may be required to obtain financing or attract capital from third parties.

Certain businesses may also be interested in preparing budgets or financial forecasts so that they are better prepared for the next fiscal period. Information included in these types of reports is essential when the management needs to anticipate cash flow requirements for the near future as well as long-term time frame. Our team works closely with clients to ensure that all relevant information is considered while preparing forecasts and budgets.

Employees should receive their T4 forms from their employers by the end of February, and personal tax returns should be filed by the end of April. Although there are cases where filing a personal tax return isn’t required, we generally recommend doing so for the following reasons:

• If your income is within certain brackets, you may qualify for additional benefits such as GST/HST credits or the Ontario Trillium Benefit.
• You may need proof that your taxes have been filed for immigration or credit application purposes.
• If you paid eligible tuition fees for post-secondary education, the educational institution may have provided you with a T2202 form (Tuition and Enrolment Certificate). You need to submit the amounts from this form to the CRA so that the appropriate tax credits can either be applied immediately or carried forward to offset future earnings as they increase.

It’s crucial to file your tax returns on time if you owe taxes. Failing to do so can result in a penalty of up to 17% of the outstanding balance. If you’ve been late filing taxes more than once in the past three years, the penalty increases to 10% of the amount you owe, plus 2% for each full month your return is late (up to 20 months). On top of these penalties, the CRA also applies interest to any overdue taxes.

Self-employed individuals have to file their personal tax returns by June 15. It is important to remember that although the tax return has to be filed by mid-June, any tax payable has to be remitted by the end of April to avoid interest charges.

Corporations in Canada must file their T2 corporate tax returns within six months after the end of their fiscal year. Any balances due must be paid within two to three months following the fiscal year-end. Depending on the nature of the business and its industry, the following additional filings may also be required:

• Forms T4: To report compensation paid to employees.
• Federal payroll deduction reports: To report amounts withheld from employees’ wages.
• Records of Employment (ROE): To document employees' work history for benefits purposes.
• Forms T4A or T5018: To report payments made to subcontractors.
• Forms T5: To report dividends paid to shareholders.
• GST/HST returns: To report and remit Goods and Services Tax/Harmonized Sales Tax collected.
• Provincial sales tax returns: For business activity in provinces that have their own sales tax (such as BC, Saskatchewan, or Manitoba).
• Workplace insurance reports: To report workplace safety insurance premiums to the WSIB in Ontario or the workers’ compensation board in other provinces.
• Miscellaneous information returns: These can include the Foreign Income Verification Statement (T1135), and the Information Return Relating to Controlled and Non-Controlled Foreign Affiliates (T1134).

We help our clients prepare and file all of the above forms. Don’t hesitate to contact us to learn how we can assist you with managing all your compliance needs. Additional filings may be required based on the specific nature of the business. Always check with the CRA or a tax professional to ensure compliance with all applicable filing requirements.

If you would like to expand your business operations to foreign countries, you need to consult an international tax specialist, as there are many things that can affect the business decision.

First of all, you need to know when and how the income from that new branch will be taxed. Sometimes it can be taxed in your home country, and sometimes it’s taxed in the destination country. Tax treaty agreements should also be considered as special rules may apply to your situation.

Special consideration should also be given to compensation strategy and payout of dividends. Depending on the circumstances, there may be a requirement for withholding taxes in one country, which often can be claimed as a foreign tax credit in another country, provided everything has been properly planned and executed. A wrong decision could lead to double taxation which should always be avoided.

Another important area which should be consulted is transfer pricing. When two related entities have cross-border transactions, these transactions should be reasonable and properly documented. Otherwise, your business will be at risk of re-characterizing certain transactions, which can result in higher taxes, penalties and arrears interest.

In addition to tax considerations, it is also important to understand the business law in each country/province where you are planning to expand. For instance, a federal (CBCA) corporation still needs at least 25% resident Canadian directors, while Ontario and many other provinces no longer have a residency requirement.

If you are in the process of developing a plan for international expansion and require the help of a tax specialist that can assist with the above concepts do not hesitate to contact us. Our firm works together with specialists in all of the areas and will help you with all the steps required to successfully execute your expansion plans.

We understand that every business is unique and requires a personalized approach to accounting and taxation. That’s why our team works with you to develop a plan that suits your business needs and goals. Our one-stop-shop approach provides a comprehensive set of services, including general business advisory, business registration/incorporation, accounting & specialized tax planning solutions.

Our team goes far beyond just filing the forms to ensure your business is set up for success. We strongly believe that the following three-step approach should be followed:

1. Consultation & Plan development
2. Registration / Incorporation
3. Accounting & Tax Set-up

The first phase is probably the most important. During this stage we ensure that you get all the necessary information required to make an informed decision as to what type of business structure will be best suited for your business needs. The most common structures we deal with are sole proprietorships, partnerships and corporations. Some of the most important topics that we cover during the consultations are as follows:

• How various business structures are taxed in Canada
• Differences between taxation of investment and active business income
• Tax implications of foreign ownership and/or international transactions
• Advantages and disadvantages of incorporated entities
• Tax strategies to defer/optimize taxes
• Best structures to optimize taxes on a sale/transfer of a business in the future
• Structuring tips to achieve objectives of multiple business partners
• Business name selection
• Differences between provincial & federal incorporation
• Costs associated with, and steps required to register each type of business.

Once a decision has been made as to what the best structure is in your situation, our team will take care of the required filings. These can include:

• Business name search & reservation
• Filing articles of incorporation
• Obtaining a company key required to submit Initial/Annual information returns with the Ontario Business Registry
• Filing the Initial Return with the province
• Registration of required tax accounts
• WSIB registration if required
• Minute book preparation

It typically takes several business days to formally register the company and an additional week or two to obtain the business number and register all required tax accounts with the CRA.

If you choose to incorporate, you’ll need to establish the appropriate type of corporation for your situation. Two common options are Standard and Professional corporations, with the choice depending on the industry in which you operate.

Professional corporations are intended for individuals offering specialized services, such as medical practitioners, lawyers, accountants, engineers, architects, and veterinarians. These corporations are typically owned by licensed professionals within the same field. While they offer limited liability for shareholders—meaning their liability is usually limited to their investment in the corporation—personal professional liability remains. As a result, professional liability insurance is often required. Additionally, professional corporations are subject to both corporate laws and industry-specific regulations, so after incorporation, you’ll likely need to apply for a Certificate of Authorization or a similar document from the relevant governing body.

Standard corporations, on the other hand, offer greater flexibility regarding shareholder status. These corporations can be owned by individuals or other corporations, regardless of the industry they operate in. Governed solely by corporate laws and regulations in the relevant jurisdiction, they typically involve fewer steps in the incorporation process. Shareholders also enjoy limited liability, generally limited to their investment in the business. In some cases, business insurance may not be necessary, as long as no personal guarantees have been made, since the shareholder’s personal assets are protected from business liabilities.

Both types of corporations offer valuable tax planning opportunities for shareholders — click here to learn more about these.

Finally, once the entity is created, business owners need to set up bookkeeping processes and get a good understanding of the tax filing requirements. In Canada, most businesses have to file tax returns annually. In addition, businesses are often required to pre-pay taxes during the fiscal year. It is therefore essential to be aware of the deadlines for tax compliance as the penalties and interest for failure to file or failure to remit taxes can add up to tens of thousands of dollars.

We understand that entrepreneurs can get very busy with day-to-day business activities and as a result, may not have enough time to maintain accounting records or file taxes on time. Therefore, we offer the following additional services:

• Bookkeeping
• Financial statement preparation
• General business advisory
• Tax return preparation
• Specialized tax planning

Contact us if you are ready to take your business to the next level. An experienced CPA/Tax Specialist will schedule a consultation within 24 hours. The consultation can be held online or at our office located at 2087 Dundas St. E, Unit 203, Mississauga, ON.

Note: we are based in Ontario, but we do accept clients from other provinces as well.

Whether you are an employee, self-employed or a shareholder of a corporation, you will have to pay taxes on the income earned. However, proper tax strategies can minimize the amount of taxes and will often prevent you from making mistakes that can result in double taxation, punitive taxation at the highest tax bracket or penalties and interest for non-compliance or late filing of required returns/forms. Hence it is very important to reach out to a tax specialist to check if there is potential for tax savings or deferral of tax payments. At our firm, we do not start any engagements if we don’t believe that our services can bring value to the customer. After the initial consultation we are usually able to tell if we think that we can help to implement a taxation plan that will minimize the overall amount of taxes owed.

Some of the strategies that can be considered include:

• Income splitting by hiring your partner or other relatives and paying reasonable compensation for the services they provide.
• Careful selection of dates for major transactions to take advantage of immediate tax deductions or deferral of income inclusion.
• Tax-efficient compensation – Shareholders of corporations have several options for receiving compensation. They can either draw salaries from the corporation or receive dividends. Depending on the situation, one option may be more advantageous than the other.
• Taking a loan from a corporation can be a good way to temporarily use the funds without immediate tax consequences, however certain things such as applicable interest rates and repayment requirements must be taken into consideration in order to avoid income inclusion of such amounts.
• There are also special elections that allow individuals to transfer property to businesses on a tax-deferred basis, rules that eliminate taxation on disposal of personal residence, or the lifetime capital gains exemption that allows certain entrepreneurs to sell their businesses without paying taxes on the increased value of their corporations.

All of the above strategies can result in massive tax savings, but they must be planned for and implemented in advance. In addition to tax planning, we also offer tax-related assistance for events that have already occurred, and that need attention now. CRA audits or review cases often make business owners stressed and overwhelmed. This is mainly because the taxpayers do not know what to expect from such procedures and are not sure what kind of documents they should provide to the tax authority. Should you find yourself in this position it is important to contact a tax specialist immediately, so that there is enough time to analyze the situation and prepare a sufficient response.

Building a successful business involves coordinating several key elements. As a business owner, it’s essential to invest in the right equipment and hire skilled personnel. You’ll also need to cultivate a strong client base and develop meaningful connections within your industry to meet your clients’ needs. A thriving business not only provides consistent income but also becomes a valuable asset that can be sold down the line. It’s crucial to plan for a potential sale ahead of time to maximize tax benefits and strategies. Feel free to reach out to us to discuss your tax situation and how we can assist you.