Accounting Montreal • Small Business Guide
Short answer: usually, yes; if you want to save taxes, time, and stress. The real question is when an accountant saves you more than they cost. Here’s a practical breakdown for Canadian small businesses (including Quebec).
What does an accountant actually do?
- Setup & structure: choose/maintain sole prop vs corporation; registrations and compliance.
- Simple money system: chart of accounts, categories, receipt workflow, clean bank feeds.
- Filings: GST/HST/QST, payroll remittances, T2125 (sole prop), T2/CO-17 (corporations).
- Tax planning: salary vs dividends, CCA, home-office, vehicle, elections, instalments.
- Decision support: cash flow, margins, break-even, pricing insights, budgets/forecasts.
- Special events: financing, hiring, SR&ED review, M&A, succession, selling the business.
DIY vs Accountant: When does it make sense?
| Situation | DIY makes sense if… | Accountant adds value if… |
|---|---|---|
| Brand new side hustle | Few transactions, no payroll, simple income/expenses. | You may incorporate soon, have multiple income streams, or want to minimize taxes from day one. |
| Service business (no inventory) | Single bank/card, consistent invoices, clean feeds. | You collect GST/HST/QST, take retainers/deposits, or have reimbursements that need proper treatment. |
| Product / e-commerce | Low volume, single platform, no cross-border sales. | You carry inventory, sell across provinces/countries, or manage returns/discounts affecting margins. |
| Hiring | One contractor, no benefits, no slips. | Payroll, CNESST, vacation pay, ROEs, T4/T5 slips, multiple employees. |
| Year-end & taxes | Straightforward T2125 (sole prop). | Incorporated (T2 + CO-17), shareholder loans, salary/dividend mix, or you want proactive tax planning. |
Cost vs value: a realistic example
Typical annual spend for many simple incorporated businesses: $3,800–$7,100 (year-end + light monthly filings). Potential returns:
- Owner compensation planning (salary/dividends) → $1,000–$3,000 saved.
- Proper claims (home office, vehicle, CCA, internet/phone) → $800–$2,000.
- Avoided penalties/interest (GST/QST/payroll) → $300–$1,500.
- Margin fixes (e.g., 3% leak on $200k sales) → $6,000.
Even if only half apply, you’re often net-positive, plus you reclaim time.
The hidden “time tax”
DIY bookkeeping can eat 72–120 hours/year. If your time is worth $75/hour, that’s $5,400–$9,000. With a clean workflow, an accountant can cut that to 1–2 hours/month, and the books are cleaner.
Canadian & Quebec specifics that trip up DIY
- GST/HST/QST thresholds, elections, filing cadence, and instalments.
- Payroll remittances (federal & Quebec), CNESST, ROEs, T4/T5 slips.
- Mixed-use vehicles & home-office allocations, must be reasonable & documented.
- Dividends vs salary, RRSP room, CPP, family income-splitting implications.
- Shareholder loan rules, avoid unintended taxable benefits.
- Inventory & COGS, when to expense vs capitalize; valuation and counts.
- E-commerce across provinces, place of supply, QST for non-residents, marketplace facilitators.
- Year-end adjustments, accruals, CCA, prepaids to prevent CRA/Revenu Québec issues.
When hiring an accountant is a no-brainer
- You’re incorporated or plan to be this year.
- You’ll hire employees (or already have).
- You collect GST/HST/QST and sell in multiple provinces.
- You’re seeking financing and need clean statements.
- You had a profitable year and want to keep more (legally).
- You’ve received a letter from CRA/Revenu Québec or missed filings.
- You’re preparing for growth, investment, or sale.
Common myths (and the reality)
- “I’m too small.” Even micro-businesses benefit from a one-time setup and annual check-in.
- “Software replaces accountants.” Apps automate tasks; they don’t plan compensation or make elections.
- “I’ll hire one later.” Fixing a year of messy books costs more than keeping them clean monthly.
- “Accountants only do taxes.” The best ones improve profits and cash flow by making your numbers useful.
How to get the most value (even on a budget)
- Pick the right cadence: monthly for complexity; quarterly or year-end for simple books.
- Use clean tools: one business bank account + card; cloud bookkeeping; receipt capture.
- Close monthly: a 30-minute “mini close” prevents year-end chaos.
- Ask for a dashboard: cash runway, margin, top expenses, break-even, one page.
- Do a pre-year-end checkup: don’t wait until filing season to make tax-saving moves.
Quick self-check: should I hire now?
If you answer “yes” to two or more, it’s probably time:
- Are filings starting to stress you (or get delayed)?
- Do you spend >5 hours/month on your books?
- Are you incorporated, hiring, or collecting GST/QST?
- Did profits rise and you want to keep more (legally)?
- Do you want clear numbers to make decisions?
This guide is for general information only and is not tax, legal, or accounting advice. Consult your professional advisor regarding your specific situation.
