Contractor accountant in Barrie

Updated September 2026.

The same subcontractor and equipment questions come up for Barrie carriers and Barrie fabricators; the national contractor accounting page covers what the CRA looks at on a construction file.

The 10% holdback, and where it sits on the books

Under Ontario’s Construction Act, the payer holds back 10% of each payment until the lien period ends. A subcontractor several tiers down can wait months. It is a separate receivable, tracked by job so every release is claimed.

At year-end the holdback raises a timing question. The work was done and invoiced, but the money is not yet due. Getting the cut-off right on each open job, what was earned, what was billed and what was retained, is the single item most likely to move a contractor’s taxable income. Construction holdbacks goes through the entries.

Progress billing and when HST becomes payable

HST does not wait for the cheque. On a progress billing, the 13% is generally payable at the earlier of payment or the invoice or due date. So a Barrie contractor can owe HST on an unpaid draw. But HST on the holdback is generally not payable until the holdback is paid or payable.

Two habits help: show the holdback separately on invoices, and file HST often enough that summer's tax is remitted before it is spent. Contractors also recover much HST on purchases, so code every input tax credit.

Subcontractors, T5018 slips and classification

A business mainly in construction reports payments to subcontractors for construction services on T5018 slips, due six months after the calendar or fiscal period ends. The data comes from the ledger, so code subcontractor payments by vendor from day one.

The harder question: is the worker a subcontractor at all? It turns on control, tools, profit or loss, and whether they could send someone else. A tradesperson working only for you, on your schedule and tools, is the classic risk; reclassification brings CPP and EI with interest. See subcontractor versus employee.

WSIB in construction reaches further

WSIB rules are broadest in construction. Most construction employers must register, and coverage reaches many independent operators and some executive officers. Premiums follow insurable earnings and work class, and WSIB payroll should match the books.

The costly detail is clearance. Pay a sub not in good standing and you can owe their premiums. Get a clearance certificate before each payment and file it with the invoice.

Residential building, and HST on a house

Contractors who build new homes face a different sales tax picture. A builder selling a new house charges HST, and new housing rebates affect pricing and who claims what. A builder who rents out a house or unit instead of selling it can be treated as selling it to themselves and owe HST on its value. Renovations follow the ordinary rules. Settle this before the first contract is signed, not after the house is finished.

Equipment, vehicles and the quiet season

Trucks, trailers, excavators and tools go through capital cost allowance at class rates. Buying before year end helps only if income can use the deduction. Winter, when Barrie crews slow, is the time to review the season: which jobs paid, what tax is coming, whether instalments fit.

What lenders, bonding companies and builders ask for

Growth needs someone else’s comfort: a bank, a surety or a general contractor vetting a trade. Each wants financial statements. For most trades a compilation engagement fits, with a report saying it is not an audit or review. If assurance is needed, we tell you before you send something that falls short.

The request always has a deadline, often mid-season. Statements are quick when the books are kept monthly, holdbacks are listed by job and work in progress is known; slow and costly when the year must be rebuilt. That is the case for current books: being able to say yes to the next contract.

Remote contractor accounting

Contractor accounting for Barrie clients is delivered remotely. There is no Barrie office and no local team. Meetings are virtual, documents are uploaded and e-signed, and you deal with the CPA. Costs are tracked as they happen. Fixed fee first; see what it costs.