Contractor accountant in Saanich
Construction in Saanich is mostly work on houses that already exist: a suite in a basement, an addition over a garage, a new kitchen, a roof, a deck facing the water in Cordova Bay. That shapes the accounting. Many small jobs, many subtrades, materials bought for each one, and a homeowner as the customer.
EverStone is a CPA for incorporated contractors and a Saanich small business accountant, working online at fixed fees.
Quick answer: A Saanich renovation contractor pays BC PST on the materials it installs into a customer’s home, charges GST on the contract, files T5018 slips for subtrades it pays, and collects WorkSafeBC clearance letters before paying them. EverStone handles the books, GST, PST, payroll and the year-end T2 remotely. A typical trades-corporation bundle of bookkeeping, payroll and the T2 usually runs $450–$650 a month.
For an incorporated Saanich contractor, bookkeeping, payroll and the year-end T2 with statements usually cost $450–$650 a month all-in. Monthly bookkeeping on its own starts from $300 a month. The year-end covers the T2 with Schedule 50, the CCA schedule for trucks and tools, the small business deduction, and the T4 or T5 slips for the owner’s pay.
PST on the materials you install
In British Columbia, a contractor who supplies and installs materials into a house is treated as the user of those materials for PST. The contractor pays the 7% PST when buying the lumber, drywall, tile or fixtures, and does not charge PST to the homeowner on the installed contract. The PST becomes part of the job cost.
The rule changes when goods are sold without installation. A contractor who sells an appliance or a vanity to a customer who installs it themselves is making a retail sale and may need to collect PST on it. Mixed jobs need the two kinds of supply separated on the invoice. The BC PST guide and construction accounting in BC set out the rules.
Suites, additions and the homeowner as customer
Suites, garden suites and additions are steady work in Saanich neighbourhoods such as Gordon Head, Royal Oak and Strawberry Vale. The customer is usually a homeowner rather than a developer, and the money arrives as a deposit, progress payments and a final payment after inspection.
GST is generally payable on the earlier of the invoice date and the date payment is received. A deposit collected in November for work in February puts GST in the company’s account months before the work is done. That tax belongs to the CRA at the next filing, not to the materials budget. Moving the GST portion of each deposit to a separate account is the simplest way to keep it.
T5018 slips for the subtrades you pay
A business whose main activity is construction reports payments to subcontractors on T5018 slips. On a typical Saanich renovation the list can include an electrician, a plumber, a drywaller, a painter and a tile setter, each for a few days. Short engagements still count.
The T5018 return is due six months after the end of the reporting period. Collecting each subtrade’s business number and address before the first payment is far easier than asking for it later. The T5018 guide and the subcontractor tracker help keep the list current.
WorkSafeBC clearances before you pay
If a subtrade’s WorkSafeBC account is not in good standing, the business that hired them can become liable for unpaid premiums on that work. A clearance letter checks the account before payment. On a job with five or six subtrades, that is five or six letters, and they are worth getting every time.
Your own WorkSafeBC account needs the same attention. Premiums are based on assessable payroll and the classification unit, and the annual payroll reported has to agree with the T4s. See payroll in Saanich for how the two are kept aligned.
Holdbacks on larger jobs
On larger contracts, BC lien legislation allows the owner to hold back part of each payment until a period after completion. For the contractor, a holdback is earned revenue that is not yet collectible. For the subtrades you pay, holdbacks you retain are costs already incurred. Both sides need a schedule, or the margin on the job is misstated. The construction holdbacks guide explains the entries.
Job costing on many small jobs
A renovation company that completes dozens of small jobs a year cannot tell which ones made money unless costs are tagged to jobs as they are entered. Materials, subtrade invoices and crew hours go against a job number. At the end of each job the margin is known, while the next quote can still use it.
Shops and yards around Keating Cross Road in Central Saanich, and home-based operations with a truck and a trailer, both benefit. The margin analysis page shows how the job numbers feed pricing.
Trucks, tools and the vehicle log
Trucks, trailers and larger tools are capital, claimed through CCA rather than expensed. A truck used for both work and personal driving needs a log of business kilometres to support the claim. A personal benefit may also arise for the owner. The vehicle log page shows what to record.
Incorporating, and paying yourself from the company
Many Saanich trades start as sole proprietors and incorporate once profit is steady. Inside a corporation, active business income up to the shared $500,000 limit is taxed at the BC small business rate of 2% plus the federal rate, which leaves more to reinvest in a truck or a shop. The owner then chooses between salary and dividends, and the choice affects CPP and RRSP room. See incorporating in BC and the salary versus dividends calculator.
What EverStone handles for you
One CPA, one fixed fee agreed up front:
- Job-costed bookkeeping with deposits and progress billings
- GST returns and input tax credit review
- PST on installed materials and on any retail sales
- T5018 slips and WorkSafeBC clearance tracking
- Payroll for crews, with CPP and EI premiums
- T2 corporate return and year-end statements
Fixed fees, fully online
EverStone is an Abbotsford CPA firm serving Saanich contractors entirely online. There is no Saanich office and no local staff. Invoices and receipts come in through a secure upload link, often photographed on site, and questions are answered by email between jobs. See what it costs.
Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, an Abbotsford CPA firm working with small businesses and incorporated owners across British Columbia. Updated . About the firm · Send an enquiry
What an incorporated contractor has to get right
| Item | Why it matters |
|---|---|
| Subcontractor payments | Reported to the CRA on T5018 slips, six months after the period |
| Installed materials | PST paid on purchase becomes a job cost |
| Deposits | GST is due on the deposit, before the work |
| Clearance letters | Protect you from a subtrade’s unpaid WorkSafeBC premiums |
| Sales tax where you operate | 5% GST plus 7% BC PST: two registrations, two returns |
Source: Construction and trades accounting. General information, not advice.
Saanich contractor questions
Do I charge PST on a renovation?+
When is GST owed on a deposit?+
Do I file T5018 slips for subtrades who only worked a few days?+
Why get a WorkSafeBC clearance letter?+
What does an accountant cost for a Saanich contractor?+
Do you work with businesses outside Saanich itself?+
Related services and local guides
Nearby cities, the rest of what we do for Saanich businesses, and the reference pages behind this one.
Fees are fixed and agreed in writing before the work starts; the published fee page shows the starting points.
Renovating and building in Saanich?
Get the T5018s, the PST on materials and the deposit GST handled by one CPA, at a fixed fee agreed up front.
Talk to a CPA about this
One Chartered Professional Accountant, start to finish. Fixed fees, quoted in writing before any work begins, and no obligation from a first conversation.
