Most Canadian business owners start out doing their own books, or handing them to a part-time bookkeeper. That works — until it doesn't. The trouble is that the tipping point rarely announces itself. It shows up as a late GST/HST return, a stressful year-end or a CRA letter you weren't expecting.
Here are nine signs it's time to outsource accounting in Canada, and how to decide what kind of help you need.
1. Your books are always a month (or three) behind
If bank and credit card reconciliations happen only when you find time, the numbers in your accounting software are guesses. Behind books make every other task — tax filings, payroll, reporting — harder and riskier.
2. GST/HST returns are a scramble
Once your taxable revenue passes $30,000 in a single calendar quarter or over four consecutive quarters, you generally have to register for GST/HST. From then on, returns are due on a schedule the CRA assigns: monthly, quarterly or annually, depending mainly on your revenue. If each return involves digging through receipts to work out what you collected and what input tax credits (ITCs) you can claim, you're likely missing credits — or risking errors. See our HST/GST services.
3. Year-end is a crisis every year
Corporations must file their T2 return within six months of their fiscal year-end, and any balance owing is usually due within two or three months. When the books arrive at year-end in disarray, your accountant has to clean them up first — at your expense — and planning opportunities are lost. Our corporate tax team works best from books that are already current.
4. Payroll eats more time than it should
Payroll in Canada means deducting CPP contributions, EI premiums and income tax, remitting them to the CRA on time and issuing T4 slips by the end of February. Late remittances bring penalties. If you're running payroll at night between other jobs, it's a sign.
5. You've had a CRA notice, review or penalty
A request for documents, a reassessment or a late-filing penalty is a warning that records or processes aren't keeping up. The CRA generally expects businesses to keep records for six years from the end of the last tax year they relate to.
6. You can't get the reports you need
Lenders, investors and partners ask for financial statements. Your own decisions — pricing, hiring, expansion — need current numbers. If producing a simple profit and loss statement takes days, your accounting function isn't serving the business.
7. Your business is growing faster than your admin
More customers, more employees, more locations and more provinces all add accounting work. Selling into other provinces also raises the question of which GST/HST or provincial sales tax rules apply to each sale.
8. Your bookkeeper is overloaded — or leaving
When one person holds all the knowledge, a resignation or long absence can stop your accounting entirely. Outsourcing builds in continuity.
9. You're spending your evenings on accounting
The most expensive accountant in your business may be you. Every hour spent reconciling accounts is an hour not spent with customers or on growth.
What outsourced accounting services in Canada include
Outsourcing doesn't have to be all or nothing. Depending on your needs, a provider can handle:
- Bookkeeping: transaction recording, reconciliations and organized records
- Accounts payable and receivable: bills, payments, invoicing and collections
- Payroll: processing, remittances and T4s
- GST/HST: tracking, ITCs and return filing
- Month-end close and reporting: financial statements and KPI reports
- Year-end and tax: working papers, financial statements and T2 preparation
Choosing the right level of support
| Your situation | A good starting point |
|---|---|
| Books behind, owner overwhelmed | Catch-up accounting, then monthly bookkeeping |
| Books current but taking too much time | Outsourced bookkeeping |
| Need reporting, payroll and AP/AR handled together | Outsourced accounting team |
| Year-end and tax are the pain point | Corporate tax and GST/HST support |
What to ask a provider
- Which accounting software do you work in? Can you work in mine?
- Who will work on my file, and will it be the same team each month?
- What will I receive, and by when?
- How do you handle GST/HST, payroll remittances and year-end?
- How is my financial data protected?
Outsource with ADYZER
ADYZER's outsourced accounting team gives Canadian businesses a dedicated remote accounting resource or a managed team for financial reporting and tax preparation, with hourly, monthly or custom pricing. Our outsourced bookkeeping service keeps the books current every month in the software you already use.
Recognized three or more of these signs? Contact our team for a quote, and we'll recommend the level of support that fits.