Retail accountant for New Westminster shops

Two sales taxes, one till

Most goods sold in a BC shop carry 5% GST and 7% PST, but not all of them carry both. Some items are exempt from PST while still subject to GST: children’s-sized clothing and footwear, basic groceries and some others. A shop selling a mix needs each product set up with the right tax in the POS, or the receipts will be wrong at the counter.

GST is reported to the CRA, and the GST you pay on stock and costs comes back as input tax credits. PST is reported to the BC Ministry of Finance on its own return. Stock bought for resale is purchased PST-free with your PST number, but items you use in the shop yourself are taxable. The BC PST guide lists the main exemptions.

Deposits, special orders and layaways

That means taking deposits weeks or months before delivery. The accounting has to follow the money properly.

A deposit is a liability until the sale is made, not revenue on the day it is paid. Whether GST and PST are due on it at once depends on whether it is a part-payment or a security deposit, so the wording on the order form matters. Refunds and cancellations need their own trail. Tracking deposits by customer, in their own account, keeps both the sales tax returns and the year-end figures honest.

Closing stock is a tax figure

For a retailer, profit depends on the inventory count. Cost of goods sold is opening stock plus purchases, less closing stock. Overstate the closing count and profit, and tax, go up. Understate it and profit is too low, which the CRA tends to notice when margins swing from year to year.

So the count at year-end deserves care: a date fixed in advance, stock valued at the lower of cost and net realizable value, and a record kept of how it was done. The year-end inventory count guide sets out the method, and inventory accounting in BC covers the ongoing records.

Stock that stopped selling

Every shop has some. A line that did not move, a size run that never sold through, seasonal goods held over. Stock worth less than it cost can be written down to its realistic selling value, which reduces profit in the year it happens. The write-down needs evidence: markdown history, a dated list, a reason.

Dead stock also ties up cash. Seeing it monthly, rather than at the year-end count, gives you the chance to clear it while it still sells at something above nothing.

Selling online as well as on the street

Many New Westminster shops also sell through their own website or a marketplace. Online sales shipped to BC addresses carry GST and PST the same way as counter sales. Sales shipped to other provinces follow the place-of-supply rules for GST and HST, and BC PST does not apply to them. Platforms deposit a net amount after their fees, so the full sale and the fee have to be recorded separately.

The goal is one set of books for both channels, with sales reported by channel so you can see which one earns its keep. See e-commerce accounting.

Seasonal staff and the December rush

Retail payroll swells before the holidays and shrinks after. Each extra hire needs a TD1, CPP, EI premiums and tax withheld, WorkSafeBC coverage, and vacation pay at 4%. Shops that open on statutory holidays owe qualifying staff holiday pay. Then T4 slips are due by the last day of February. See payroll services in New Westminster.

Working with a New Westminster retailer remotely

The work runs from the systems you already use. The POS exports a daily summary, the bank and card feeds bring in the deposits, and supplier invoices come through a secure upload link. Each month we reconcile sales, card settlements and the bank, and post both sales taxes. At year-end you count stock; we value it, finalize the books and prepare the T2 or the T2125. Questions in between are answered by email at no extra charge. See bookkeeping in New Westminster.

The CPA who reviews your stock valuation is the one who signs the corporate return built on it. If the shop is incorporated, the year-end also settles the owner’s pay: salary on a T4, dividends on a T5, or a mix, decided before the year closes. The small business deduction keeps the BC rate on active income low, which leaves more in the company for stock and fixtures.

Each month closes the same way, so nothing is left for March. The month-end close page lists the steps.

Remote retail accounting from Abbotsford

EverStone is a one-CPA firm based in Abbotsford, serving New Westminster retailers entirely online. There is no New Westminster office and no local staff. Meetings are held by video, documents come in through a secure upload link and are signed by e-signature, and no visit is required at any point. The POS, the bank feeds and your count sheets are all the work needs.