Technology and IT consultants - Accounting

 

Incorporate your IT Practice

Incorporating your practice can help you shoulder the burden of tax and accounting for yourself. With more control over how profits are distributed and taxed, as well as opportunities to save on income splitting with family members or retirement savings plans that match our current economic landscape - incorporating is an intelligent decision worth considering!

Tax plans and Strategies

IT professionals are in a unique position to help their clients. But when you start practicing and accumulate capital, tax planning becomes more complex - CapexCPA will review your current goals while considering future ones so that we can determine appropriate asset protection strategies as well as investment options for retirement savings or insurance coverage based on the type of business entity best suited for what you need (e..g., sole proprietor versus partnership).

Tax Preparation and Compliance Services

If you are looking for an easy-to-use, cost-effective and efficient accounting system that will meet the needs of your IT practice then CapexCPA is here. We can help with day-to-day tasks such as setup or training on our cloud-based platforms Xero or Quickbooks.

If this sounds like what's right up your alley give us a call today!

You started a Technology IT business to sell your services not to do Accounting.

Let us help you build a solution for your Accounting and Tax needs.

FAQ’s - IT EDITION

  • You can tap into Dividends and other asset protections that are available under an Incorporation. So generally, it’s better to incorporate but this really depends. See more information here —> https://capexcpa.com/incorporations

  • Yes you can pay your spouse a reasonable salary. What’s reasonable? If you were to hire someone to do the exact job would you pay that amount to them? if so then it generally passes the reasonable test. Your accountant can help you decide this and plan better.

  • Yes, dividends are very useful for tax planning if deployed correctly. Family members who are shareholders and are involved can receive a reasonable dividend from the corporation. Generally, TOSI rules stipulate that the family member must work at least 20 hours a week continuously in the business.

  • SRED stands for Scientific Research and Experimental Development. This is part of your Corporate T2 Tax return and you can claim back your salary and other development charges related to some level of new innovation or research being completed by you or your company.

    We can facilitate a 20-minute call with our SRED Consultants to see if you are eligible. It’s free.

  • Yes sure. Just provide us with the Trial balance or the Profit and Loss and Balance sheet and we’ll put together the T2 GIFI statements for you that is required for incorporated individuals or a T2125 schedule while completing your personal taxes.

  • Yes. We always include the shareholder and the spouse as a package deal.

  • If you are making less then $400,000 then you can elect to file a Quick method of HST which is basically paying 8.8% of your HST balance rather then 13%. There is a calculation that needs to be completed.

    It only makes sense to do this if you don’t have much expenses which generally IT profession has very little expenses.

  • Yes, if you are using the Home office to meet clients and conduct business. These days the clients don’t even have to come to your house physically thanks to Zoom.

    You can claim a portion based on the total squarefeet of your house and the total squarefeet of your office taken as a % and multiplied by the expense is the total claim amount.

  • Yes if you want to claim expenses related to automobile expenses. The Vehicle log will be required in the case scenario of a CRA Audit or they may disallow the expenses.

  • If it’s a general question during the year you can send us an email or book a call with us.

    If it requires us to calculate something then it’s a billable event for us.

    So if it takes less than 10-15 minutes we don’t even charge for that.

  • Lifestyle Tax Strategy is a 2-hour session we do with Robot Transcription and ask you very particular questions related to your budget, credit, wealth, and future planning.

    We use all the keywords and learnings from this session to maximize your tax return and help grow your wealth.