--- title: "Manufacturer Accountant in London, Ontario: Inventory, SR&ED" url: https://www.everstonecpa.com/manufacturer-accountant-london-ontario description: "CPA for London, Ontario manufacturers: inventory and WIP, job costing, CCA on machinery, SR&ED on process work and EHT. Send an enquiry today." type: service-in-a-city updated: 2026-10-02 summary: "A London, Ontario manufacturer’s taxable income turns on four things a service business never meets. The first two are how inventory and work in progress are valued at year-end, and how machinery is written off through capital cost allowance. The others are whether process work qualifies for SR&ED, and a payroll large enough to bring in Employer Health Tax. EverStone handles all four with the T2, at a fixed fee." faq_count: 7 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/) [Accountant in London](https://www.everstonecpa.com/accountant-london-ontario) Manufacturers Manufacturers & food processors · London, Ontario # Accountant for *London, Ontario* manufacturers London’s 401 industrial parks, plus Woodstock and St. Thomas, hold auto parts suppliers, metal shops and food processors whose numbers live in inventory, work in progress and machines. EverStone serves manufacturers across [London and Middlesex County](https://www.everstonecpa.com/accountant-london-ontario) remotely, at fixed fees. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** A London, Ontario manufacturer’s taxable income turns on four things a service business never meets. The first two are how inventory and work in progress are valued at year-end, and how machinery is written off through capital cost allowance. The others are whether process work qualifies for SR&ED, and a payroll large enough to bring in Employer Health Tax. EverStone handles all four with the T2, at a fixed fee. Published fees start at $325 a month for bookkeeping and $125 for a personal return. For a one-owner London Ontario manufacturer, monthly bookkeeping, payroll and the year-end T2 with statements usually cost from $500 to $700 a month all-in. ## Inventory and work in progress move taxable income Cost of goods sold is opening inventory plus purchases, less closing inventory. Every dollar added to the closing figure is a dollar of profit, and every dollar missed is a dollar of expense claimed too early. For a parts shop that means coil and bar stock, parts partway through the line and finished goods waiting on a release. For a food processor it means ingredients, packaging and product in the cooler. Each is valued at the lower of cost and fair market value, on a basis that stays the same from year to year. The count at year-end is the evidence the CRA will ask for, so it is planned, done on the day, and kept. [The year-end inventory count](https://www.everstonecpa.com/blog/year-end-inventory-count-canada) explains what has to be recorded. ## Job costing that shows which parts make money Auto-sector suppliers often run long programs where the price must hold or fall, so real cost per part is the only defence: actual material cost, direct labour hours, a burden rate covering building, power and supervision, and tracked scrap. Food processors do the same through yield and batch costs. Books split that way answer every quote: can we make this part at this price? [Pricing review](https://www.everstonecpa.com/pricing-and-margin-analysis) goes further. ## Machinery, CCA and the replacement decision Presses, CNC machines, robots and packaging lines are written off through capital cost allowance, with manufacturing and processing machinery in its own class. A machine has to be available for use before any claim starts, so equipment delivered in the last week of the year but not yet commissioned may not produce the deduction you expected. When an old machine is sold or traded, the proceeds reduce the class, and if they exceed what is left the difference comes back as recapture. Leasing and buying produce different deductions for the same machine, and the reduced first-year claim is explained in [the half-year rule](https://www.everstonecpa.com/blog/half-year-rule-cca-canada). All of this is worth a conversation before the purchase order is signed. [CCA classes](https://www.everstonecpa.com/blog/capital-cost-allowance-cca-classes-canada) sets out the structure. ## SR&ED on process improvement Much plant development happens on the floor: a fixture redesigned for tolerance, a failing weld process, a shelf-life line change. Systematic trials to resolve a real technical uncertainty may qualify for scientific research and experimental development credits. The claim is made on Form T661 with the corporate return, and a Canadian-controlled private corporation can earn an enhanced refundable credit, which means cash even in a year without tax to pay. Routine production, quality control and ordinary troubleshooting do not qualify. Notes and test results made at the time are what carry a claim through review. See the [SR&ED expenditure limit](https://www.everstonecpa.com/tax-update/sred-expenditure-limit) update. ## Payroll, Employer Health Tax and the second shift Adding a shift is often what pushes a London manufacturer past the Employer Health Tax exemption. The rate is then picked from a graduated table using total Ontario payroll before the exemption, and related companies share a single exemption between them. WSIB premiums depend on the rate group attached to the account, which is worth confirming for a shop that has changed what it makes. Shift premiums, overtime and taxable benefits all have to reach the T4. [Payroll in London](https://www.everstonecpa.com/payroll-services-london-ontario) covers the detail. ## HST on inputs, and on what crosses the border The 13% HST paid on steel, tooling, power and freight comes back as input tax credits, so a manufacturer’s HST is mostly about capturing every credit. Goods exported to customers in Michigan or elsewhere in the United States are generally zero-rated, which can put a shop in a refund position each period. US dollar receivables and bank accounts need a consistent conversion method so exchange gains and losses land in the right year. [HST on exports](https://www.everstonecpa.com/blog/gst-hst-on-exports-and-non-residents) covers the conditions. ## What EverStone handles for you One CPA and one fixed fee, agreed in writing before work starts. See [what it costs](https://www.everstonecpa.com/pricing). - T2 corporate return and year-end financial statements - Inventory and WIP valuation set once and applied consistently - Job costing built into the chart of accounts - CCA schedules, disposals, recapture and lease-or-buy analysis - SR&ED records reviewed through the year and the T661 prepared - Payroll, Employer Health Tax and WSIB reporting - HST returns, including zero-rated export sales 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) ## What a manufacturer has to get right What a manufacturer has to get right The items that decide a production year-end — for a business operating in London, Ontario | Item | Why it matters | | Inventory and WIP | The closing value moves profit dollar for dollar | | Machinery | Written off through CCA from the day it is available for use | | SR&ED | Refundable credits depend on records made at the time | | Payroll | Employer Health Tax and WSIB rise with every shift added | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [Ontario tax facts](https://www.everstonecpa.com/ontario-tax-facts). General information, not advice. Other services for London businesses: [personal tax](https://www.everstonecpa.com/personal-tax-accountant-london-ontario). ## Remote accounting for manufacturers EverStone, a fully virtual one-CPA firm, serves London, Ontario manufacturers online. **There is no London office and no local staff.** Meetings are by video or phone, files come by secure upload link, and inventory and equipment schedules stay current all year. Common questions ## London accounting for manufacturers FAQ **Why did my inventory count change my tax?** Because closing inventory reduces cost of goods sold. A higher count means higher profit for the year and a lower one means less. That is why the valuation basis has to stay consistent and the count has to be supported. [Ask about your case →](https://www.everstonecpa.com/quick-question) **What costs go into finished goods?** Materials, direct labour and the production overhead that supports making the product. Selling, office and financing costs stay as expenses. Anything absorbed into inventory is deducted only when the goods are sold. **Can a small shop claim SR&ED?** Size is not the test; technical uncertainty is. A two-person shop that ran a structured series of trials to solve a problem no standard method could may qualify. A large plant repeating a known process does not. **I traded in an old machine and owe more tax. Why?** Recapture. The trade-in value came off the class, and more had been claimed on the old machine over the years than it actually lost in value. The difference is added back to income in the year of the trade. **Do we charge HST on parts shipped to the US?** Goods exported outside Canada are generally zero-rated, so no HST is charged, while the HST on your inputs is still claimed. The shipping documents are the proof, so keep them with the invoice. **Do you work with plants outside London?** Yes. Shops in St. Thomas, Woodstock, Strathroy and across Southwestern Ontario are served the same way, remotely, by video, phone and a secure upload link. **Do you work with businesses outside London itself?** Yes. Manufacturers in St. Thomas, Strathroy, Woodstock and the rest of Middlesex County are served the same way as those in London, remotely and at the same fixed fees. ## Related services and local guides Nearby cities, the rest of what we do for London businesses, and the reference pages behind this one. [Manufacturer accountant in Kitchener-Waterloo](https://www.everstonecpa.com/manufacturer-accountant-kitchener-waterloo) [Manufacturer accountant in Windsor](https://www.everstonecpa.com/manufacturer-accountant-windsor) [Trucking accountant in London](https://www.everstonecpa.com/trucking-accountant-london-ontario) [Accounting & CPA services in London](https://www.everstonecpa.com/accountant-london-ontario) [Bookkeeping in London](https://www.everstonecpa.com/bookkeeping-london-ontario) [Corporate tax (T2) in London](https://www.everstonecpa.com/corporate-tax-accountant-london-ontario) [Payroll in London](https://www.everstonecpa.com/payroll-services-london-ontario) [Farm accounting in London](https://www.everstonecpa.com/farm-accountant-london-ontario) [Contractor accounting in London](https://www.everstonecpa.com/contractor-accountant-london-ontario) [Financial statement preparation](https://www.everstonecpa.com/financial-statement-preparation-canada) [Manufacturer accounting in Hamilton](https://www.everstonecpa.com/manufacturer-accountant-hamilton) [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) ### What clients say Rated 5.0 on Google across 21 client reviews. [Read all reviews](https://www.everstonecpa.com/reviews) ★★★★★ “Personal. Professional. Responsive. Plus he saved me a bundle!” Corrin Skalbeck Verified Google Local Guide ★★★★★ “…He is very knowledgeable and has saved me tons in taxes by restructuring my group of companies — the best accountant I've worked with in the last 10 years, after switching from three different firms.” Matt Hildebrandt Verified Google review ### Starting fees Every fee is fixed in writing before any work begins. - **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 - **Corporate year-end and T2 return** fixed fee, quoted in writing - **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=monthly#enquiry-form) --- Source: https://www.everstonecpa.com/manufacturer-accountant-london-ontario Prices: https://www.everstonecpa.com/pricing · Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online