Accountant for Prince George mining services companies

For a one-owner mining services corporation, monthly bookkeeping, payroll and the year-end T2 with statements usually run $450 to $650 a month all-in. Larger crews and multiple sites are quoted after a free consultation. Bookkeeping on its own starts from $300 a month, with GST and PST filing included. See the published fees.

Serving the mines from Prince George

Prince George is the supply and service base for much of the north-central mining and exploration activity. Diamond drillers, camp caterers, mechanics, environmental and survey crews, and equipment rental yards all run from here. Many of them also work for forestry and construction customers in the same year.

That gives a mining services company an unusual shape. Revenue comes in large contracts from a small number of customers. Costs come in early: mobilizing equipment, flying or driving crews in, stocking camp. And exploration work follows the season, busiest when the ground is open. The books have to show each contract on its own, from mobilization to final invoice.

Contracts, purchase orders and long payment terms

Mine operators and exploration companies usually issue purchase orders and pay through their own invoicing systems. Payment can take well over a month, and some contracts hold back part of each invoice until the work is accepted. A contractor with a full order book can still run short of cash.

We keep receivables by customer and contract, record holdbacks as their own receivable, and reconcile customer statements monthly. GST is owed when you invoice, not when you are paid, so a large unpaid invoice still lands on the next return. Knowing what is owed and when it will arrive is what lets you take on the next contract safely. A rolling cash forecast shows the gap before it opens. Collecting receivables covers the routine.

Drill rigs, camp units and equipment at remote sites

Drill rigs, compressors, camp trailers, light towers, pickups and service trucks are capital assets. Each goes into a CCA class and is deducted over several years, with the half-year rule generally limiting the first-year claim. Equipment that moves between sites stays on the same asset register.

When a rig is sold, written off after damage or traded, the proceeds come off the class and can produce recapture or a terminal loss. We keep the register current through the year, so the year-end schedule is a check, not a search. Equipment CCA classes lists the common ones, and the CCA overview explains the mechanics.

Crews on rotation and camp payroll

Mine-site crews usually work set rotations, with travel days at each end. Payroll has to handle the hours at site, standby, travel time, statutory holidays that fall mid-rotation and the overtime that follows. Camp board and lodging at a remote site can be non-taxable in defined circumstances. Flat bonuses and allowances paid regardless of location are generally taxable on the T4.

Source deductions, CPP and EI premiums and WorkSafeBC reporting follow every pay. When the season ends, Records of Employment go out for each laid-off worker. Payroll in Prince George covers the setup in detail.

GST and PST on site work

GST applies to most mining services, and the GST you pay on fuel, parts, camp supplies and equipment comes back through input tax credits. Register early: once taxable sales pass $30,000 in four consecutive calendar quarters, registration is mandatory, and a single contract can cross that line.

PST is the harder one. Parts and equipment you buy are generally subject to 7% PST, and it is a cost rather than a credit. Renting or leasing equipment to a customer is generally a taxable lease for PST, so a rental yard or a contractor supplying machines may need to charge it. Some services and some sales to customers can be exempt. We review what you actually invoice against the BC rules. The BC PST guide sets out the basics.

WorkSafeBC and clearance letters

Mine operators and prime contractors usually ask for proof that you are registered and in good standing with WorkSafeBC before you go on site. If you hire subcontractors, the same rule protects you: get a clearance letter before you pay them. An unregistered subcontractor’s premiums can otherwise fall to you.

Your WorkSafeBC classification follows the work your company actually does. A contractor doing drilling and hauling may need more than one. WorkSafeBC registration explains the steps, and contractor accounting in Prince George covers T5018 slips for construction subcontracts.

Seasons, development work and the T2

Exploration and site work slow sharply in freeze-up and breakup, so a mining services company plans its cash around those gaps. A fiscal year-end in the quiet season gives time for the count, the review and the planning conversation. We also look at owner pay before year-end, and at the shareholder loan account, which is taxed as income if not repaid within one year after the corporation’s year-end.

Some shops develop new tools, fixtures or methods for difficult ground. Where the work involves real technical uncertainty, it may qualify for SR&ED, claimed on Form T661. A Canadian-controlled private corporation can earn an enhanced refundable credit. The claim depends on records kept while the work is done. Corporate tax in Prince George covers the rest of the T2.

Remote, from Abbotsford

EverStone is a one-CPA firm based in Abbotsford, serving Prince George mining services companies remotely. There is no Prince George office. Timesheets, purchase orders and receipts come in through a secure upload link, often straight from a phone at site. Questions go by email, with a video call when it helps. Your fee is fixed before work starts, and the same CPA keeps the books and prepares the return.