Every Canadian business deals with the same federal rules: the CRA, GST, payroll source deductions and the T2 corporate return. But a business in Toronto, one in Vancouver and one in Calgary also face different provincial taxes, employer costs and local industries.
The best accounting services for small businesses understand both layers. Here's what to look for in each city — and how to choose.
What every Canadian small business needs
Wherever you're based, a good accounting partner should cover:
- Monthly bookkeeping: transaction recording, reconciliations and organized records
- Sales tax: registration, collection, input tax credits and returns
- Payroll: processing, CPP/EI/income tax remittances and T4s
- Year-end: financial statements and the T2 return for corporations, or the T1 for sole proprietors
- Planning: owner compensation, the small business deduction, instalments and growth decisions
- CRA support if you're reviewed or audited
Toronto: HST, scale and competition
Toronto is Canada's largest business market, spanning finance, professional services, technology, retail, real estate and hospitality.
Accounting considerations for Toronto businesses:
- HST at 13% on most taxable supplies in Ontario, administered by the CRA together with GST
- Ontario Employer Health Tax, which applies once payroll passes the exemption amount for eligible employers
- WSIB workers' compensation coverage for many industries
- Competitive labour market, which makes hiring in-house accounting staff expensive
What to look for: a firm comfortable with HST, Ontario payroll obligations and, if you have outside stakeholders, year-end statements such as compilation engagements (formerly Notice to Reader). ADYZER's head office is in the GTA, and our Toronto accounting services cover bookkeeping, corporate tax, GST/HST filing, compilation preparation and dedicated accounting staff for CPA firms.
Vancouver: GST plus PST, and global business
Vancouver's economy leans on technology, film and television production, real estate and international trade.
Accounting considerations for Vancouver businesses:
- 5% GST plus 7% PST on many goods and some services. PST is administered by the province, not the CRA, so many businesses need two registrations and two sets of returns
- BC Employer Health Tax, which applies once payroll passes its exemption threshold
- WorkSafeBC coverage
- Multi-currency transactions for businesses that trade internationally
What to look for: experience with combined GST/PST compliance, foreign currency accounting and industries such as tech and film. Our Vancouver accounting services cover outsourced accounting and bookkeeping, multi-currency accounting, payroll and GST/PST compliance.
Calgary: GST only, and resource-linked industries
Calgary's economy includes energy, construction, agriculture, transportation and a growing technology sector.
Accounting considerations for Calgary businesses:
- GST only, at 5% — Alberta has no provincial sales tax, which simplifies sales tax for local sales
- No provincial employer health tax
- WCB Alberta workers' compensation coverage
- Project-based and seasonal revenue in sectors such as construction and energy services, which makes cash flow planning important
What to look for: an accountant who understands job costing and seasonal cash flow, and who can handle sales into other provinces, where HST or PST rules may apply. Calgary businesses can work with our team remotely through our outsourced accounting team.
Selling across provinces
Many businesses don't stay in one province. A Toronto company selling to customers in BC, or a Calgary business shipping to Ontario, has to apply the sales tax rules of the place of supply — and may need to register for a provincial sales tax. Your accountant should be able to manage these cross-province rules.
Local accountant or remote accounting firm?
City-specific knowledge matters, but most accounting work today happens in cloud software. A remote accounting firm can serve businesses in all three cities with the same team, as long as it understands each province's rules. What matters most:
- Responsiveness and a consistent team
- Experience with your province's taxes and your industry
- Secure, cloud-based access to your books
- Clear pricing and deliverables
Questions to ask any accounting firm
- Do you work with businesses in my province and industry?
- Which accounting software do you use — can you work in mine?
- What's included in your monthly fee?
- Who prepares my GST/HST (and PST) returns and my T2?
- How do you protect my financial data?
- Can you help if the CRA reviews my business?
Accounting services across Canada with ADYZER
ADYZER provides outsourced bookkeeping, an outsourced accounting team, corporate tax preparation and GST/HST filing for small businesses across Canada — from our head office in Mississauga and remotely nationwide. See all our office and city locations, or visit our homepage to explore our services.
Contact us to talk about your business, wherever you're based.