Canada

Federal plus provincial, getting both layers right.

Accountants for Canadian SMEs work two layers at once. Federal obligations run through the Canada Revenue Agency: GST or HST returns, payroll source deductions, T4 and T5 slips, and the T2 corporate return six months after the year end. Provincial sales tax and corporate tax then stack on top, differing by province.

Canada's 1.2 million small businesses operate within a layered compliance regime, federal (CRA) and provincial, each with its own filings, deadlines and quirks. While the Canada Revenue Agency administers GST and harmonised HST in most provinces, Quebec has its own QST regime via Revenu Québec, British Columbia and Saskatchewan have separate provincial sales taxes, and Manitoba has RST. Getting the right sales tax in the right jurisdiction is half the operational work.

On top of indirect tax, Canadian corporations file annual T2 returns within six months of the year-end (with the payment due in two or three months depending on size). Small business rates of 9–12% federally apply to active business income below the small-business limit; the general rate of 15% applies above. Provincial corporate income tax stacks on top, anywhere from 8% to 16% depending on the province and year.

Payroll is administered through Canada Pension Plan (CPP) and Employment Insurance (EI) contributions, with provincial parallels in Quebec (QPP, QPIP). T4 statements of remuneration go to employees and the CRA by the last day of February. T5 statements of investment income, including dividends paid to shareholders, go out on the same deadline.

Accountaire handles all of this. We work in QuickBooks Online Canada (the dominant platform), Xero, and FreshBooks. We file via CRA My Business Account using direct-file authorisations, monitor provincial sales-tax registration thresholds across all provinces, and produce ASPE-compliant statutory accounts for year-end.

Most of our Canadian clients fall into two groups. Owner-managed corporations should start with small business accounting for 5 to 50 employee firms, and cross-border sellers with accounting for online brands, because Canadian sellers shipping south inherit the US nexus rules as well. Indirect tax across both regimes is covered on our VAT, GST and tax compliance page, payroll on our multi-jurisdiction payroll page, and the ledger itself usually runs in QuickBooks Online. The sales tax side is covered in full in our GST/HST filing guide for Canada, including registration thresholds, filing frequency, input tax credits and the penalty arithmetic on a late period. Canadian engagements are built from our directory of accounting services, with the GST/HST and payroll elements sized to the province you operate in.

The Canadian year

What do accountants for Canadian SMEs file, and when?

The federal cycle we plan against. Provincial filings sit alongside and vary by province.

What do accountants for Canadian SMEs file, and when?
FilingGoes toTiming
GST/HST returnCRAMonthly, quarterly or annually by revenue
Payroll source deductionsCRAMonthly for most employers, accelerated above thresholds
T4 slips and summaryCRA and employeesBy the last day of February
T5 slips for dividends and investment incomeCRA and recipientsBy the last day of February
T2 corporate returnCRASix months after the year end
Corporate tax balanceCRATwo months after the year end, three for qualifying CCPCs
Provincial sales tax returnsProvincial authoritiesBy province, where registered
1.2M
Canadian SMEs
5%
GST (federal); HST varies 13–15%
9–15%
Federal Corporation Tax (SBR vs general)
13
Provinces & territories
Services we run for Canada SMEs

Built for Canadian businesses.

Federal plus provincial, every service calibrated to the Canadian regime.

CORE

Canadian cloud bookkeeping

Daily QuickBooks Online or Xero bookkeeping with ASPE-compliant coding, bank reconciliation, and receipt capture.

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CORE

Canadian payroll

CPP/EI calculations, T4 issuance, provincial deductions, ROE processing on terminations.

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COMPLIANCE

GST/HST & PST

Quarterly or annual GST/HST returns. PST/RST/QST in applicable provinces. Input tax credits tracked.

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COMPLIANCE

T2 Corporation Tax

Annual T2 return preparation with small-business-rate calculation, capital cost allowance, instalment scheduling.

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REPORTING

Management accounts

Monthly ASPE-aligned reporting suitable for bank-loan covenants and board review.

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ADVISORY

CFO-as-a-Service

Strategic finance for Canadian growth-stage businesses, including SR&ED claim planning.

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Compliance regime

Canadian compliance, handled.

The filings, portals and deadlines we own for every Canadian client.

  • CRA Business Account authorisationWe register as your authorised representative through CRA My Business Account. Submissions and correspondence flow through this channel.
  • GST/HST quarterly or annual returns Filed via CRA My Business Account on your registered cycle. Input tax credits reconciled. Place-of-supply rules applied for inter-provincial transactions.
  • Provincial sales tax (PST / RST / QST) Registration and filing in British Columbia (PST), Saskatchewan (PST), Manitoba (RST), and Quebec (QST via Revenu Québec). Combined federal-provincial registration handled.
  • T2 Corporation TaxAnnual return filed within six months of year-end. Payment due two or three months after year-end depending on size. Small business deduction applied where eligible.
  • T4 statements of remuneration Issued to employees and filed with CRA by last day of February. Employer Health Tax (Ontario) and equivalent provincial taxes coordinated.
  • T5 statements of investment income Issued to recipients of dividends, interest and royalties. Filed with CRA on the same February schedule.
  • CPP, EI and provincial deductions Monthly or quarterly source-deduction remittances. Quebec parallel system (QPP, QPIP) handled where applicable.
  • SR&ED tax credit claims Scientific Research & Experimental Development claims for qualifying technology and product development. Form T661 prepared and filed with T2.
Why Canada SMEs choose us

What Canadian clients tell us they value.

EXPERTISE

CRA procedure & ASPE-aware.

Trained on Canadian Accounting Standards for Private Enterprises (ASPE) and CRA tax procedure. Province-by-province sales tax expertise.

TECH

QuickBooks Canada specialists.

QuickBooks Online ProAdvisor certified, the Canadian SME default. We also support Xero and Wave for smaller operations.

SPEED

5-day month-end. 4-hour SLA.

Contracted SLAs in your engagement letter. Books closed by the 5th business day; queries answered within four business hours.

VALUE

CAD-priced. Fixed monthly fees.

Local CAD pricing. From CAD 680/month. No hourly billing. SR&ED claim preparation supported on Professional and Enterprise tiers.

"Switched from a downtown Toronto firm. Same quality of reporting, half the cost, and the books actually close on the 5th. Their handling of HST and Ontario EHT is the smoothest I've experienced."
O
Owner · Professional services firmToronto, Ontario

What Canadian owners ask us first.

Can you file with the CRA on my behalf?
Authorisation is something you grant rather than something we hold. You approve the request inside CRA My Business Account, set the level of access it carries, and can revoke it the same afternoon. It does not move liability: the directors stay responsible for what is filed under their business number. Keep your own login active too, because some CRA correspondence still goes to the registered address.
How do you handle the small business deduction?
For Canadian-controlled private corporations, the small business deduction reduces the federal corporate rate from 15% to 9% on active business income up to $500,000. We calculate the available deduction, taking into account associated companies and passive-income clawbacks.
What about Quebec? Do you work with Revenu Québec?
Quebec runs parallel systems: QST in place of part of HST, QPP/QPIP in place of part of CPP/EI, and Quebec corporate income tax filed separately. We handle the dual filings via CRA and Revenu Québec.
Can you handle SR&ED claims?
Yes. The claim is usually won or lost on evidence rather than on the write-up. CRA expects records made while the work happened, so issue trackers, time entries and design notes carry more weight than a narrative assembled months later. Routine debugging and feature work driven by customer requests are the two things most often claimed and then denied. The reporting deadline runs from your year-end and CRA does not extend it.
How do you treat provincial sales tax?
GST/HST is handled federally for participating provinces. PST in British Columbia and Saskatchewan, RST in Manitoba, and QST in Quebec are filed separately under their own provincial regimes. We monitor registration thresholds across all provinces.
What about Ontario Employer Health Tax?
Ontario EHT applies to employers with Ontario payroll above $1 million (with exemption up to that threshold for most private employers). We calculate, accrue and remit alongside payroll deductions.
Do you prepare statutory financial statements for bank loans?
Yes. Notice to Reader (compilation), Review Engagement and Audit are all standard year-end deliverables we coordinate. Compilation we prepare directly; Review and Audit we coordinate with a Canadian CPA firm under our oversight.
How do you handle CCPCs with US operations?
Canadian-controlled private corporations with US operations face FAPI (foreign accrual property income) rules, transfer-pricing requirements, and US filing obligations. We coordinate on the Canadian side; we partner with a US CPA on the US side.
For Canadian SMEs

Want Canadian accounting done properly?

Thirty minutes on a call. Written, fixed-fee proposal within 24 hours. CRA authorisation set up in onboarding.