--- title: "Tech Startup Accountant Richmond Hill | SR&ED and HST" url: https://www.everstonecpa.com/tech-startup-accountant-richmond-hill description: "Tech startup accountant for Richmond Hill founders: SR&ED on Form T661, founder pay, CCPC stock options and 13% HST, handled online. Get a fixed quote." updated: 2026-10-16 publisher: EverStone CPA Inc. (Chartered Professional Accountant firm, Abbotsford, BC) service_area: British Columbia, Alberta, Ontario and Manitoba --- [Home](https://www.everstonecpa.com/) Tech startup accountant in Richmond Hill Tech, software & medtech startups · Richmond Hill # Tech startup accountant in *Richmond Hill* A Richmond Hill software, electronics or medtech company usually has three money questions at once: how to claim the development work, how to pay founders who are still building, and how to keep equity promises from turning into tax surprises. The books have to answer all three, and hardware companies add a fourth — inventory and equipment. EverStone is a remote CPA serving Richmond Hill founders, and the [Richmond Hill small business accountant page](https://www.everstonecpa.com/accountant-richmond-hill) covers the wider picture. Fixed fees, online. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) **Quick answer:** A Richmond Hill tech startup that is a Canadian-controlled private corporation can claim SR&ED on Form T661 and may earn the enhanced refundable credit. Grants and other assistance usually reduce the spending the credit is based on. Options granted by a CCPC are generally taxed when the shares are sold, not when the option is exercised. EverStone prepares the claim, the T2 and the HST filings remotely. Published fees start at $300 a month for bookkeeping and $100 for a personal return. For a one-owner Richmond Hill tech startup, monthly bookkeeping, payroll and the year-end T2 with statements usually cost from $450 to $650 a month all-in. If you are still deciding whether to incorporate, start with [should I incorporate](https://www.everstonecpa.com/should-i-incorporate). If the company exists and has a first year-end coming, the [just-incorporated checklist](https://www.everstonecpa.com/blog/just-incorporated-now-what-canada-checklist) lists what to set up before the first return. ## Richmond Hill’s technology base The City of Richmond Hill highlights its high-tech sector and a cluster of life-sciences and medical-technology companies, and its business profiles feature software developers, electronics firms, robotics companies and advanced manufacturers. The City hosts an annual life-sciences business summit, MedEdge, each June, and its Small Business Enterprise Centre runs seminars and support services for founders. For a startup that means good company and plenty of people who have been through the same questions. It also means the accounting problems are well known: development records for SR&ED, grants layered on top, founders paid unevenly, options promised to early hires, and sales to customers well beyond Ontario. ## SR&ED starts in the bookkeeping, not the claim The Scientific Research and Experimental Development program is claimed on [Form T661](https://www.canada.ca/en/revenue-agency/services/scientific-research-experimental-development-tax-incentive-program.html) with the corporate return. The claim describes the technological uncertainty and the systematic work done to resolve it, and it puts a number on the salaries, contractor costs and materials behind that work. The second half is where startups lose money. If developers and engineers log time against features, prototypes and experiments during the year, the eligible wages can be traced. If nobody does, the claim is rebuilt from memory long after the year-end and trimmed to what can be defended. A CCPC can earn an enhanced refundable credit, which means cash back even in a year with no taxable profit — often the most valuable line on a young company’s T2. Ontario layers its own research credits on the same work, so one clean set of records supports both. For hardware and medtech companies, materials consumed or transformed in experimental work can also qualify, which makes tracking prototype parts separately from production inventory worthwhile. See the [SR&ED expenditure limit update](https://www.everstonecpa.com/tax-update/sred-expenditure-limit). ## Grants, the SR&ED base and the order of operations Founders often stack funding: a government grant, an accelerator award, a research partnership and then SR&ED on top. The rule to know is simple. Government and non-government assistance for the same work generally reduces the expenditures the SR&ED credit is calculated on. A grant does not disqualify the project, but it shrinks the base. So each grant needs its own account in the books, tied to the project and period it paid for. Record it as general revenue and the claim overstates the base. Leave it off and a reviewer finds it. Both mistakes are avoided by coding assistance when the money arrives. ## Founders’ pay while the company has no profit Early on, founders often pay themselves nothing and lend the company money instead. Later they draw salary, dividends or a mix. The choice matters more in a research company than elsewhere. Salary paid to a founder who works on qualifying development can count as an SR&ED wage; a dividend cannot. Salary also creates RRSP room and CPP, and runs through payroll with remittances and a T4 due by the last day of February. Money moving the other way needs care too. A shareholder loan that is not repaid within one year after the corporation’s year-end is generally taxed as the owner’s income. Track every advance and reimbursement on a [shareholder loan schedule](https://www.everstonecpa.com/shareholder-loan-tracker). The [salary-versus-dividends calculator](https://www.everstonecpa.com/salary-vs-dividends-calculator) is a useful first pass, and [salary versus dividends](https://www.everstonecpa.com/blog/salary-vs-dividends-2026) explains the trade-off. ## Stock options in a CCPC Equity is how a startup competes for engineers before it can compete on salary. For a Canadian-controlled private corporation, the tax on an employee stock option benefit is generally deferred until the shares are sold, not triggered at exercise. That is friendlier than the public-company rule, but it still needs paperwork: grants, vesting, exercises and the price paid have to be recorded, and the benefit reported on the T4 in the year of sale. Option plans also interact with the SR&ED claim. The option benefit is not a cash wage and is not treated as one in the claim. Keep the cap table and the payroll records reconciled, because an investor or acquirer will ask for both. ## Hardware, inventory and equipment Electronics, robotics and device companies carry costs a pure software company does not: components, prototypes, test equipment and finished stock. Production inventory is valued at the lower of cost and net realisable value, and obsolete parts are written down. Test and lab equipment is capitalised and depreciated through CCA. Keeping prototype materials, production inventory and capital equipment in separate accounts from the start makes both the SR&ED claim and the year-end statements far easier. [Year-end statements in Richmond Hill](https://www.everstonecpa.com/financial-statements-richmond-hill) covers presentation. ## HST on software and devices sold from Richmond Hill Ontario charges a single [13% HST](https://www.everstonecpa.com/ontario-tax-facts). For a startup the harder question is who the customer is. Subscriptions and services sold to Ontario customers carry 13%; sales to customers in other provinces follow their rate; services and intangibles supplied to non-residents are often zero-rated. A company selling through a payment platform to customers in many countries needs its billing system set up to show where each customer is. Registration is mandatory once taxable sales pass $30,000 in four consecutive quarters, and many startups register earlier because recovering HST on development spending helps cash while revenue is small. See [GST/HST filing in Richmond Hill](https://www.everstonecpa.com/gst-hst-filing-richmond-hill). ## What EverStone handles for you One CPA, one fixed fee agreed up front: - T2 corporate return with the SR&ED schedules and Form T661 - Development time and cost tracking set up in the books - Grant and assistance tracking by project - Founder salary, dividend and shareholder loan planning - Stock option records and T4 reporting on sale - HST registration, place-of-supply and filings - Inventory and equipment records for hardware companies - Board and investor reporting from the monthly close ## Fixed fees, fully online EverStone serves Richmond Hill founders entirely online: video calls, a secure upload link and e-signature. Monthly bookkeeping starts from $300 a month with HST filing included, and a fractional CFO engagement starts from $2,500 a month once the company is raising; see [CFO services in Richmond Hill](https://www.everstonecpa.com/cfo-services-richmond-hill). The T2 and SR&ED work are quoted after we review your enquiry. See [what it costs](https://www.everstonecpa.com/pricing). About this article **EverStone CPA** Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, a CPA firm working with small and midsized businesses in BC, Alberta, Ontario and Manitoba. Updated October 2026 . [About the firm](https://www.everstonecpa.com/about) · [Send an enquiry](https://www.everstonecpa.com/book-online) ## What a tech startup has to get right What a tech startup has to get right The items that decide a startup’s year-end — for a business operating in Richmond Hill, Ontario | Item | Why it matters | | Development time | Time records are what turn salaries into an SR&ED claim | | Grants and assistance | Assistance for the same work generally reduces the SR&ED base | | Founder pay | Salary can be a qualifying wage; a dividend cannot | | Stock options | A CCPC option benefit is generally taxed when the shares are sold | | Sales tax where you operate | 13% HST, a single registration and a single return | Source: [Corporate tax hub](https://www.everstonecpa.com/corporate-tax-hub). General information, not advice. Other services for Richmond Hill businesses: [personal tax](https://www.everstonecpa.com/personal-tax-accountant-richmond-hill) and [payroll](https://www.everstonecpa.com/payroll-services-richmond-hill). Common questions ## Richmond Hill accounting for tech startups FAQ **Can a pre-revenue Richmond Hill startup get money back from SR&ED?** Often, yes. A Canadian-controlled private corporation can earn an enhanced refundable credit, so a qualifying claim can produce a refund even in a loss year. The claim is only as good as the records behind it, so time tracking and cost coding need to start during the year. [Ask about your case →](https://www.everstonecpa.com/quick-question) **Does a government grant stop us claiming SR&ED?** No, but it usually reduces the expenditures the credit is calculated on. Record each grant against the project and period it funded so the claim uses the right base. **Should founders take salary or dividends?** It depends on the year. Salary paid for qualifying development work can count toward SR&ED, creates RRSP room and brings CPP. Dividends are simpler to administer but add nothing to the claim. Many founders use a mix and revisit it at each year-end. **When are employee stock options taxed in a CCPC?** Generally when the shares are sold, not when the option is exercised. The benefit is reported on the employee’s T4 for the year of sale, so the company needs clean records of grant, exercise and price. **Do prototype materials count for SR&ED?** Materials consumed or transformed in qualifying experimental work can be included, which is why prototype parts should be tracked separately from production inventory in the books. **Do we charge HST to customers outside Ontario?** It depends where the customer is. Other provinces use their own rate, and many supplies to non-residents are zero-rated. Set your billing system to capture customer location so each invoice carries the right tax. **Do you have a Richmond Hill office?** No. Corporate tax and SR&ED are federal, with the Ontario layer handled on the same return. The work runs by video, secure upload and e-signature, and there is no Richmond Hill office. **Do you work with startups outside Richmond Hill itself?** Yes. Tech startups in Oak Ridges, Aurora, Markham, Vaughan and the rest of York Region are served the same way, remotely and at the same fixed fees. Toronto founders are covered on the [Toronto accountant page](https://www.everstonecpa.com/accountant-toronto). ## Related services and local guides The rest of what we do for Richmond Hill businesses, nearby cities, and the reference pages behind this one. [Fractional CFO support in Richmond Hill Runway, board reporting and the numbers a raise depends on.](https://www.everstonecpa.com/cfo-services-richmond-hill) [Trades accountant in Richmond Hill HST on construction, WSIB for owners, holdbacks and T5018 slips.](https://www.everstonecpa.com/trades-accountant-richmond-hill) [Tech startup accountant in Vancouver The same specialism under BC’s GST and PST system.](https://www.everstonecpa.com/tech-startup-accountant-vancouver) [Starting a business Incorporation, first filings and setup](https://www.everstonecpa.com/starting-a-business-hub) [Accountant in Toronto The same engagement, serving Toronto](https://www.everstonecpa.com/accountant-toronto) [Bookkeeping in Richmond Hill Bookkeeping for Richmond Hill businesses](https://www.everstonecpa.com/bookkeeping-richmond-hill) [Corporate tax (T2) in Richmond Hill Corporate tax for Richmond Hill businesses](https://www.everstonecpa.com/corporate-tax-accountant-richmond-hill) [GST/HST filing in Richmond Hill HST for Richmond Hill businesses](https://www.everstonecpa.com/gst-hst-filing-richmond-hill) [Payroll in Richmond Hill Payroll for Richmond Hill businesses](https://www.everstonecpa.com/payroll-services-richmond-hill) [Accountants across Ontario Remote CPA service throughout Ontario](https://www.everstonecpa.com/accountant-ontario) [Ontario tax facts Current rates and thresholds for Ontario](https://www.everstonecpa.com/ontario-tax-facts) [Financial statements in Richmond Hill Year-end statements for Richmond Hill businesses](https://www.everstonecpa.com/financial-statements-richmond-hill) Fees are fixed and agreed in writing before the work starts; [the published fee page](https://www.everstonecpa.com/pricing) shows the starting points. ### 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 ★★★★★ “…We switched to him last year for both our personal and small-business taxes — responsive, knowledgeable and quick.” Heather Powers Verified Google review ## Building a tech company in Richmond Hill? One CPA for your corporate tax, SR&ED records, books and planning. Fixed fee, fully online. Send an enquiry. [Get My Fixed Quote](https://www.everstonecpa.com/book-online)[Ask a Free Question](https://www.everstonecpa.com/quick-question) ## Remote startup accounting EverStone serves Richmond Hill founders entirely online. **There is no Richmond Hill office and no local staff.** Meetings are held by video or phone, documents come in through a secure upload link and are signed by e-signature, and no visit is required at any point. Development time, grant records and cap-table changes are kept in the same monthly file, because the SR&ED claim depends on all three. ## 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. [Get My Fixed Quote](https://www.everstonecpa.com/book-online) [Ask a Free Question](https://www.everstonecpa.com/quick-question) Email info@everstonecpa.com --- Source: https://www.everstonecpa.com/tech-startup-accountant-richmond-hill Contact: info@everstonecpa.com · https://www.everstonecpa.com/book-online