Retail accountant in Quebec City
From boutiques in the old town that live on visitors to shops in Sainte-Foy that live on local shoppers, a Quebec City retailer’s year turns on stock, two sales taxes and a few peak weeks. EverStone keeps the books and returns for Quebec City retailers remotely, in English, at fixed fees.
Quick answer: A Quebec City retailer charges 5% GST and 9.975% QST, generally both filed with Revenu Québec, and reconciles POS takings to the bank every period. It counts inventory to set cost of goods sold on both the T2 and the CO-17, and records shrinkage rather than absorbing it. EverStone handles the books, sales tax, payroll and corporate returns remotely, in English, at a fixed fee agreed before work begins. Published fees start at $300 a month for bookkeeping and $100 for a personal return.
The closing stock figure decides the year
For a retailer, profit is sales less the cost of what was sold, and the cost of what was sold depends on what is left on the shelves at year end. Overstate closing inventory and profit rises, along with tax on both corporate returns; understate it and profit falls until the error reverses next year. A physical count at the year end, priced consistently and documented, is what supports the figure. Cost means what the stock cost to bring in, including freight and duties, not what it will sell for. Items that are damaged, obsolete or will only sell at a loss are written down to what they will realistically bring. The year-end inventory count sets out the method.
Shrinkage belongs on its own line
Theft, breakage, miscounts and receiving errors all reduce stock without a sale. When shrinkage is absorbed quietly into cost of goods sold, the margin looks worse and nobody can tell why. When it is measured, by comparing what the POS says should be on hand with what the count finds, it becomes a number that can be managed. You can see which categories lose most, which suppliers short-ship, and whether a particular season or location is the problem. Counting high-value categories more often than once a year, even partially, is the cheapest control a retailer has.
GST and QST at the till
A Quebec City retailer charges 5% GST and 9.975% QST on most goods, and for most Quebec businesses both are administered by Revenu Québec. Not every product is treated the same way: basic groceries are generally zero-rated, and some items fall into special categories, so the POS item file has to carry the right tax code for each product. The books need two tax accounts, each reconciled to the return. Registration is mandatory once taxable sales pass $30,000 in four consecutive calendar quarters, and the filing period follows revenue: annual at $1.5 million or less, quarterly up to $6 million, monthly above. Zero-rated and exempt supplies explains the categories.
The POS, the bank and the gift cards
Daily takings in the POS must agree with what reaches the bank: card settlements net of processing fees, cash deposits, and refunds processed back to cards. Gift cards and store credit are a liability when sold and revenue when redeemed, and the sales tax generally follows the redemption. Layaways and deposits are not yet sales. When each of those flows has its own account and is reconciled monthly, the sales tax returns write themselves; when they are lumped together, the year end becomes a search for missing money. Complete transaction-level records, including voids and discounts, should be kept for six years.
Peaks that shape the cash
Quebec City retail has more than one high season. Summer visitors fill the old town, the December holidays bring local shoppers out, and winter festivals draw another wave. Stock for each peak is bought weeks before it sells, so cash leaves the business well ahead of the sales that replace it. A monthly view of inventory, payables and sales tax owing shows how much of the bank balance is really free. Buying too deep for a peak that disappoints leaves the business carrying stock, and the cash in it, into a quiet season. Cash flow in a seasonal business covers the planning.
The aggregate margin hides as much as it shows. A shop selling souvenirs, clothing and local food products may earn very different margins on each, and a strong season in a low-margin line can look like growth while profit stands still. Coding sales and purchases by product line, even broadly, makes it possible to see which categories pay for the rent. From there, margin analysis and a rolling cash forecast turn the monthly books into buying decisions for the next peak, rather than a record of the last one.
Selling online as well as in the shop
Many Quebec City shops also sell online, including to customers in other provinces. The sales tax on an online order follows where the goods are delivered, not where the shop is, so a sale shipped to Ontario carries HST rather than GST and QST. The online platform, the POS and the ledger all need to agree on which sales went where. Inventory shared between the shop and the website has to be counted once, not twice. The ecommerce accounting hub gathers the federal guides.
What EverStone handles for you
One CPA, one fixed fee agreed up front. Monthly bookkeeping starts from $300 a month on the published list, with sales tax filing included.
- POS, card and gift card reconciliation, monthly
- GST and QST returns filed with Revenu Québec
- Inventory valuation and shrinkage reporting
- Quebec payroll for seasonal staff, with RL-1 and T4 slips
- T2 and CO-17 corporate returns and year-end statements
- Margin by product line and cash planning around the peaks
Retail payroll follows the season too: extra staff for the peaks, then departures and Records of Employment. Payroll in Quebec City covers QPP, QPIP, the Health Services Fund and CNESST.
Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, an Abbotsford CPA firm working with small businesses and incorporated contractors across the Fraser Valley and Canada. Updated September 2026. About the firm · Book a free consult
What a retailer has to get right
| Item | Why it matters |
|---|---|
| Inventory valuation | Directly sets cost of goods sold, and therefore taxable income on both returns |
| Shrinkage | Has to be recorded rather than quietly absorbed into cost |
| Point-of-sale reconciliation | Daily takings must agree to what actually reaches the bank |
| Sales tax by item | Not every product carries the same treatment |
| Sales tax where you operate | 5% GST plus 9.975% QST, generally both filed with Revenu Québec |
Source: Inventory and retail accounting. General information, not advice.
Other services for Quebec City businesses: personal tax.
Quebec City accounting for retail businesses FAQ
Which inventory valuation method should we use?+
How should we handle gift cards and store credit?+
Do we charge QST on online orders shipped out of Quebec?+
How often should a retailer count stock?+
Do you work with Quebec City retailers in English?+
Do you work with businesses outside Quebec City itself?+
Related services and local guides
Nearby cities, the rest of what we do for Quebec City businesses, and the reference pages behind this one.
Running a retail business in Quebec City?
One CPA for your books, sales tax and both corporate returns, in English. Fixed fee, fully online. Book a free consult.
Remote retail accounting from Abbotsford
EverStone is a sole practitioner CPA firm at 32615 South Fraser Way in Abbotsford, working with Quebec City clients entirely online and in English. There is no Quebec City office and no local staff. Meetings are held by video or phone, documents come in through a secure upload link, and no visit is required at any point. POS exports, supplier invoices and count sheets are uploaded as they happen, so the year end is a review rather than a rebuild.
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.
