Retail accountant in Coquitlam

Monthly bookkeeping for a Coquitlam shop starts from $300 a month, and the GST and PST returns are filed inside that fee. An incorporated retailer’s bundle with payroll and the year-end T2 usually runs $450 to $650 a month. The year-end covers the T2 with Schedule 50, the small business deduction, the inventory valuation, CCA on fixtures and equipment, and T4 slips for staff.

Two sales taxes at the register

BC charges GST and PST as separate taxes, and they do not always apply to the same items. Most goods carry both. Some carry GST only: children’s clothing and footwear, for example, are generally exempt from PST. Basic groceries are generally free of both. A shop that sells a mix has to set each product’s tax code correctly in the point-of-sale, and check new products when they arrive.

GST collected is reduced by input tax credits on purchases. PST paid on the shop’s own purchases, like fixtures and computers, is generally a cost. Each tax is reported to its own government on its own schedule. The BC PST guide covers who must register, with rates on the BC tax facts page.

Closing stock sets the profit

For a retailer, the inventory figure at year-end is a tax number. Cost of goods sold is opening stock plus purchases minus closing stock, so every dollar of closing stock overstated is a dollar of profit overstated. A physical count, valued at cost, is what makes the figure defensible. Cost includes the purchase price plus freight and duty to get the goods onto the shelf. Choose a year-end when stock is lowest, often after the holiday rush, and the count becomes a morning instead of a weekend. The year-end inventory count guide sets out a simple method.

Shrinkage, markdowns and stock that stopped selling

The count always finds less than the system says. That difference is shrinkage: theft, breakage, receiving errors. Recorded as its own line, it tells you whether the problem is growing. Absorbed silently into cost, it hides. Stock that has stopped selling can be written down below cost where it is genuinely worth less, but it has to be identified item by item and supported. A season of unsold patio furniture or last year’s electronics is a real loss; a general guess is not. Reviewing slow stock quarterly, and marking it down to move, usually beats carrying it for a year. See inventory accounting in BC.

The daily close and card settlements

Each day’s point-of-sale summary is posted as one entry: sales by tax code, discounts, returns, gift cards and payment type. Card settlements arrive a day or two later, net of processor fees, and are matched through a clearing account. Cash is counted and deposited, with any variance recorded by day. Gift cards are a liability when sold and revenue only when redeemed. Layaways and deposits work the same way. When the clearing account returns to nil, the sales figure is right. See bookkeeping in Coquitlam for the monthly routine.

Returns and exchanges need the same discipline. A refund reverses the sale and both taxes collected on it, and the point-of-sale should record the reason. A pattern of refunds without receipts is worth a closer look.

Selling online as well as in the shop

Many Tri-Cities retailers also sell through their own website or a marketplace. Marketplace payouts arrive net of fees, refunds and sometimes advertising, so the gross sale, each fee and each refund are recorded separately. Orders shipped elsewhere in Canada can carry a different sales tax treatment from sales at the counter, because the destination decides the rate. Some marketplaces collect and remit tax on your behalf, which has to be reflected in your returns so it is not reported twice. Inventory held for online sales belongs in the same count as the shelf stock. The marketplace rules guide explains who collects what.

Holiday stock and cash timing

Retail in Coquitlam follows the calendar: back-to-school, the holiday season, spring gardening and summer. Buying for the holidays means paying suppliers in autumn for sales that arrive in December. A simple cash forecast shows whether the line of credit or the bank balance covers the gap. GST and PST collected in a strong December are due on the next return, so set them aside as they come in. Staff hired for the holidays need the same payroll care as permanent staff, including vacation pay and statutory holiday pay. See payroll in Coquitlam, and cash flow management for the forecast.

Leases, fit-outs and fixtures

A shop lease usually comes with a fit-out: shelving, lighting, flooring, signage and a counter. Fixtures and equipment are claimed through capital cost allowance. Leasehold improvements in a rented unit follow their own rules, generally over the term of the lease. A landlord’s tenant allowance is not free money for tax purposes and needs its own treatment. Raising the fit-out before year-end, not after, keeps the first year’s claim right. The CCA classes guide covers the basics.

Many shop owners start as sole proprietors, reporting the business on a T2125, and incorporate once the shop earns more than they need to draw. Inventory, fixtures and the lease then move into the company, which is usually done on a tax-deferred basis rather than as a sale. The timing matters, because a mid-year move splits the count and the returns. The should you incorporate page walks through the trade-off, and the conversation is part of the free consultation.

Remote retail accounting from Abbotsford

The firm operates virtually from Abbotsford and serves the Tri-Cities remotely. There is no Coquitlam office and no staff based there. Point-of-sale and merchant feeds arrive electronically, count sheets and invoices come in through a secure upload link, and questions are answered by email. Nothing about the engagement depends on being nearby.