--- title: "Financial Statement Preparation in Toronto | Agencies, CPA" url: https://www.everstonecpa.com/financial-statements-toronto description: "Financial statement preparation in Toronto for agencies and consultancies: retainer revenue, gross versus net billings and project WIP. Ask a Canadian CPA." type: service-in-a-city updated: 2026-10-02 summary: "Year-end statements for a Toronto agency or consultancy are typically a CSRS 4200 compilation. The decisions that shape them are whether pass-through spend is reported gross or net, how retainers are released to revenue, and how unbilled work on fixed-fee projects is measured. For a one-owner Toronto corporation, bookkeeping, payroll and the year-end T2 with statements together usually run $500–$700 a month." faq_count: 8 publisher: EverStone CPA Inc., a Chartered Professional Accountant firm registered with CPA British Columbia and CPA Alberta service_area: British Columbia, Alberta, Ontario and Manitoba language: en-CA contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online --- [Home](https://www.everstonecpa.com/) [Year-end statements](https://www.everstonecpa.com/financial-statement-preparation-canada) Toronto Year-end statements · Toronto # Financial statement preparation for *Toronto* agencies and consultancies Two Toronto agencies can bill the same clients, keep the same money and report revenue figures that differ by a factor of three — entirely because of how pass-through spend is presented. It is part of [EverStone’s work for Toronto businesses](https://www.everstonecpa.com/accountant-toronto). That single decision shapes how the business looks to a lender, a buyer or a network. EverStone prepares [year-end statements](https://www.everstonecpa.com/financial-statement-preparation-canada) for incorporated companies, remotely. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** Year-end statements for a Toronto agency or consultancy are typically a CSRS 4200 compilation. The decisions that shape them are whether pass-through spend is reported gross or net, how retainers are released to revenue, and how unbilled work on fixed-fee projects is measured. For a one-owner Toronto corporation, bookkeeping, payroll and the year-end T2 with statements together usually run $500–$700 a month. Filings include T4 slips, Schedule 1 and Schedule 50. Financial statement preparation for Toronto companies follows CSRS 4200 and is quoted before the work starts. Same money, same profit — a top line that can differ by a factor of three. ## Gross or net: the presentation that changes the top line When an agency buys media, print or production on a client’s behalf and recovers the cost, the question is whether the agency is acting as principal or as agent. A principal controls the service before it is transferred, bears the inventory and credit risk, and reports the full amount as revenue with the cost in expenses. An agent arranges the service for another party and reports only its fee or commission. Substance decides, not preference, and it can swing reported revenue without changing profit. Buyers and lenders normalize to net revenue anyway, so grossing up only raises questions about judgement. ## Retainers: money in advance is not a good quarter Retainers are usually billed ahead of the work, and until the period is served the money is an obligation: deferred revenue. A retainer for a defined scope is released as the scope is delivered; one that buys availability can generally be released evenly over the term. The hazard is a retainer billed monthly but used unevenly, heavy in a launch month and light after. Releasing it on the invoice date produces a profit pattern unrelated to the work, which no monthly trend can explain. ## Unbilled work on fixed-fee projects Fixed-fee projects create the mirror problem. Hours are worked and freelancers paid before a milestone is invoiced. If revenue is recognized only on invoicing, costs and revenue fall in different periods and the project margin never shows. Recognizing revenue as work is done needs an estimate of progress and cost to finish, which is only as good as the time records. Agencies without project time tracking struggle at year-end and cannot tell which projects paid. ## Client concentration and what a reader does with it Agency revenue is often concentrated: a handful of accounts carry most of the year. That is a business fact, not an error, but a lender, buyer or incoming partner wants to see it, not discover it. Where one client is a substantial share of revenue or receivables, disclose it. Aging matters too. Large clients often pay slowly, so a profitable agency can carry receivables that dwarf its cash; a clear aging explains why cash looks out of line with profit. ## Contractors, freelancers and what sits behind the cost line Most agencies mix employees and freelancers, with both costs in the same place on the income statement. The risk: a long-term contributor on set hours under direction may be an employee in substance, whatever the invoice says, and unremitted [payroll deductions](https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/payroll.html) stay invisible until assessed. Accrued but unused vacation for employees is the other commonly missed item. It is an obligation earned during the year and belongs as a liability at the year-end date. See the [worker classification](https://www.everstonecpa.com/blog/employee-vs-contractor-cra-worker-classification) guide for how the tests are applied. ## What a compilation covers, and what it does not A CSRS 4200 **compilation engagement** presents information from management without testing revenue judgements, confirming receivables or giving any opinion. It is neither an audit nor a review, and the statements say so. For most independent agencies that is enough until a transaction: joining a network, admitting a partner, borrowing beyond a modest facility or selling. Each counterparty wants assurance over the revenue judgements a compilation does not test. Decide the level before year-end, not after. ## Working with a remote Canadian CPA EverStone is one CPA working online, with no Toronto office. Toronto engagements run remotely by secure document exchange, video and e-signature. This suits incorporated marketing and creative agencies, digital and media shops, management and IT consultancies, and independent professionals operating through a corporation. Related pages: the [Toronto small-business CPA](https://www.everstonecpa.com/accountant-toronto) page, [Toronto agency accounting](https://www.everstonecpa.com/agency-accountant-toronto), and [agency and consulting accounting](https://www.everstonecpa.com/agency-consulting-accounting). The year end this all feeds into is [our Toronto corporate tax page](https://www.everstonecpa.com/corporate-tax-accountant-toronto). None of this works on records that are behind, which is what [bookkeeping in Toronto](https://www.everstonecpa.com/bookkeeping-toronto) keeps current. Where a lender or an agreement calls for assurance rather than a compilation, the next question is [what readiness for that engagement involves](https://www.everstonecpa.com/audit-review-readiness). Where the questions are about revenue mix, pricing model and client concentration rather than presentation, see [fractional CFO support for Toronto agencies and consultancies](https://www.everstonecpa.com/cfo-services-toronto). About this article **EverStone CPA** Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. Updated September 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## Financial statement preparation in Toronto: what a year-end file contains What a year-end file contains Statements and the tax return come from one set of numbers — for a business operating in Toronto, Ontario | Component | What it shows | | Balance sheet | What the corporation owns and owes at the year-end date | | Income statement | Revenue and expenses over the fiscal year | | Compilation engagement report | The CPA communication that accompanies compiled statements | | T2 schedules | Schedules 100, 125 and 141, built from the same figures as the statements | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [What a compilation engagement is](https://www.everstonecpa.com/compilation-engagement-canada). General information, not advice. In Toronto, EverStone also works with [realtors](https://www.everstonecpa.com/realtor-accountant-toronto) and [tech startups](https://www.everstonecpa.com/tech-startup-accountant-toronto). ## Who this is for, and who it is not This suits a Toronto agency or consultancy that needs compiled statements for its bank or its owners. If a network, partner or buyer wants a review or an audit, that is a separate engagement, and the first call pins down which. The fee is then [quoted in writing](https://www.everstonecpa.com/pricing). ## What happens when you get in touch Statements for a Toronto business are prepared the same way wherever the business sits, on a fee agreed up front. - **A free thirty-minute conversation.** Who is going to read the statements, and what that reader needs to see in them. - **The books brought to a closing position.** Balances agreed, cut-off checked, and anything unexplained resolved before a single statement is drafted. - **Drafted, reviewed, issued.** Statements walked through with you, then issued with the [compilation engagement report](https://www.everstonecpa.com/compilation-vs-review-engagement) the reader is expecting attached. [Send an enquiry](https://www.everstonecpa.com/book-online) and bring the lender’s request with you, or [ask what they will want](https://www.everstonecpa.com/quick-question) first. Common questions ## Toronto agency statement questions **Should media spend be included in my revenue?** Only if the agency acts as principal, controlling the service before it transfers and bearing the risk. If it arranges the buy for the client, it is an agent and reports only its fee. Substance decides, and readers normalize to net revenue anyway. [Ask about your case →](https://www.everstonecpa.com/quick-question) **When does a retainer become revenue?** As the work is performed or the availability period passes, not when invoiced. Until then it is deferred revenue. Releasing retainers on the billing date distorts monthly profit, especially when the scope is used unevenly. **How is unbilled project work measured at year end?** By estimating progress against total expected effort, backed by time records. Without them the estimate is guesswork, year-end is hard and project profitability unknown. Document the estimate and its basis in the working papers. **Do I have to disclose that one client is most of my revenue?** Disclose any single customer that is a significant share of revenue or receivables. It is a business trait, not a problem, but a lender, buyer or incoming partner would rather read it in a note than find it in diligence. **Does a compilation test how I recognized revenue?** No. A compilation presents what management provides with no assurance or opinion, so revenue judgements, where most agency estimation sits, go unexamined. A counterparty wanting comfort will ask for a review or audit. **Can a BC-based CPA prepare Ontario corporate statements?** Yes. Reporting standards and the federal return are national, and Ontario corporate tax is administered federally for most corporations. Only the provincial rate and some provincial filings differ, and both are handled in the engagement. **What do year-end financial statements cost in Toronto?** The fee is the same in Toronto as anywhere else EverStone works. Statements on their own are quoted after we review your enquiry. For a one-owner trades corporation, bookkeeping, payroll and the year-end T2 with statements together usually run $500 to $700 a month all-in. [See the published fees](https://www.everstonecpa.com/pricing). **Do you work with businesses outside Toronto itself?** Yes. Year-end statements for businesses in Mississauga, Brampton, Vaughan, Markham and the rest of the GTA are prepared exactly as for Toronto ones, from the same closed books, at the same fee. ## Related services and local guides Nearby cities, the rest of what we do for Toronto businesses, and the reference pages behind this one. [Restaurant accountant in Toronto](https://www.everstonecpa.com/restaurant-accountant-toronto) [Financial statements in Ottawa](https://www.everstonecpa.com/financial-statements-ottawa) [Financial statements in Chilliwack](https://www.everstonecpa.com/financial-statements-chilliwack) [Financial statements in Abbotsford](https://www.everstonecpa.com/financial-statements-abbotsford) [GST/HST filing in Toronto](https://www.everstonecpa.com/gst-hst-filing-toronto) [Payroll in Toronto](https://www.everstonecpa.com/payroll-services-toronto) [CFO services in Toronto](https://www.everstonecpa.com/cfo-services-toronto) [Financial statement preparation](https://www.everstonecpa.com/financial-statement-preparation-canada) [Year-end hub Everything due at a corporate year-end](https://www.everstonecpa.com/year-end-hub) [Compilation engagements](https://www.everstonecpa.com/compilation-engagement-canada) [Accountants across Ontario](https://www.everstonecpa.com/accountant-ontario) [Ontario tax facts Current rates and thresholds for Ontario](https://www.everstonecpa.com/ontario-tax-facts) [CPA for Toronto owner-operators](https://www.everstonecpa.com/trades-accountant-toronto) [Personal tax accountant in Toronto](https://www.everstonecpa.com/personal-tax-accountant-toronto) ### Starting fees Every fee is fixed in writing before any work begins. - **Corporate year-end and T2 return** fixed fee, quoted in writing *This page* - **Monthly bookkeeping, HST filing included** from $325 a month - **Payroll, remittances, T4s and ROEs** included in monthly bookkeeping - **Books, payroll and the year-end T2 together** $500–$700 a month - **Personal tax return (T1)** from $125; self-employed or rental $275–$500 - **Catch-up bookkeeping** from $2,200 per year of records - **Controller or CFO support** controller from $1,650, CFO from $2,750 a month - **One-off advice call with a CPA** $225 plus GST [Get My Fixed Quote](https://www.everstonecpa.com/book-online?service=corporate-tax#enquiry-form) --- Source: https://www.everstonecpa.com/financial-statements-toronto Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online