Retail accountant in Richmond
Richmond retail ranges from the shopping centres along No. 3 Road to the big-box and service plazas of Ironwood and the small shops of Steveston village. Much of what is on the shelves was bought overseas. That puts two numbers at the centre of every shop’s tax result: what the stock really cost, and how the sales tax splits at the till. EverStone works with Richmond retailers remotely, from Abbotsford.
Quick answer: A Richmond retailer’s taxable profit depends on the closing stock figure, valued at landed cost, and on splitting 5% GST from 7% BC PST correctly at the till. Imported goods add border GST, which a registrant recovers as an input tax credit. EverStone prepares the bookkeeping, GST and PST returns and the year-end T2 for Richmond shops at a fixed fee.
Monthly bookkeeping for a Richmond retailer starts from $300 a month, with GST and PST filing included. A one-owner retail company with payroll and the year-end T2 and statements usually pays $450 to $650 a month all-in, which covers the CCA schedule on fixtures, the small business deduction and the owner’s T4 or T5.
Two sales taxes at one till
BC charges GST and PST as separate taxes. GST applies to almost everything a shop sells, and the GST it pays on stock and expenses comes back as input tax credits on the GST34 return. PST applies to most goods but not all of them. Many food items, children’s clothing and some other categories are exempt from PST while still carrying GST. A store that sells across those categories needs each product coded correctly in the point-of-sale system, because the PST return is built from what the till says it collected. The BC PST guide covers the exemptions and the registration.
The two taxes also behave differently on purchases. PST paid on shelving, display cases, a new POS terminal or a renovation is generally a permanent cost. It belongs in the asset, not in a receivable, while the GST on the same invoice is recovered.
Landed cost on imported stock
A Richmond shop that buys from overseas suppliers pays more than the invoice. Freight, insurance, customs brokerage and duty are all part of the cost of the goods. Valuing stock at the supplier’s price alone understates it, which overstates the margin during the year and produces a correction at the count. The GST charged when the goods clear customs is different: for a registrant it is recovered as an input tax credit, so it stays out of the stock cost. The broker’s paperwork is what proves it was paid.
Purchases in a foreign currency add a further step. The stock is recorded at the exchange rate on the invoice date, the payment at the rate on the day it is made, and the difference is a foreign exchange gain or loss in its own account. Inventory accounting in BC walks through both.
Closing stock sets the tax
Cost of goods sold is opening stock plus purchases less closing stock. Of those three, only closing stock is a count rather than a figure read from a statement, and every dollar of it moves taxable income by a dollar. A physical count at year-end, valued at landed cost, is what makes the figure defensible. A system quantity carried forward without a count is the weakest point on most retail files. The year-end inventory count guide sets out a method a small shop can actually follow.
Stock that stopped selling
Fashion, electronics and seasonal goods can lose value quickly. Stock that is genuinely worth less than its cost can be written down, but it needs to be identified item by item and supported, not applied as a blanket percentage at year-end. Shrinkage is similar. A shrink figure that is tracked through the year tells the owner something about the business; one that is plugged at year-end only balances the books.
Gift cards, deposits and layaway
Gift cards are common in Richmond’s mall stores and boutiques, and they are not a sale when they are bought. GST and PST generally apply when the card is redeemed for goods, not when it is purchased. Until then, the money is a liability. Deposits on special orders and layaway work the same way. Recorded as revenue on receipt, they overstate income and can put sales tax on the wrong return. A separate liability account for each keeps both the income and the tax in the right period.
A retail year with more than one peak
Richmond shops see the December holidays like everyone else, and many also see a second rush ahead of Lunar New Year. Two peaks mean two buying cycles, two periods of heavy stock and two stretches where cash is tied up on the shelves. Choosing a year-end that falls after the busy seasons, rather than in the middle of one, makes the count smaller and the result clearer. The year-end choice guide explains the trade-offs.
Working with a Richmond retailer remotely
EverStone is a one-CPA firm in Abbotsford, serving Richmond shops remotely. There is no Richmond office and no local staff. Point-of-sale exports, bank feeds and supplier invoices come in electronically or through a secure upload link, questions go by email first, and nobody needs to close the shop for an appointment. The CPA who reconciles the till reports each month prepares the year-end from them.
Prepared and reviewed by a Chartered Professional Accountant at EverStone CPA, an Abbotsford CPA firm working with small businesses across British Columbia. Updated . About the firm · Send an enquiry
What a retailer has to get right
| Item | Why it matters |
|---|---|
| Closing stock | Counted and valued at landed cost; it moves taxable income dollar for dollar |
| POS tax codes | PST exemptions differ from GST, so each product needs the right codes |
| Imports | Border GST recovered as an input tax credit, duty and freight added to cost |
| Gift cards | A liability until redeemed, with tax applying on redemption |
| Sales tax where you operate | 5% GST plus 7% BC PST: two registrations, two returns |
Source: Accounting and bookkeeping services. General information, not advice.
Other services for Richmond businesses: bookkeeping, payroll and restaurant accounting.
Richmond retail accounting FAQ
Do I charge PST as well as GST in my Richmond shop?+
Can I claim back the PST I pay on shop fixtures?+
Is the GST paid at customs part of my stock cost?+
Do I have to count stock at year-end?+
Can I write down stock that is not selling?+
Can I visit you in Richmond?+
Do you work with businesses outside Richmond itself?+
Related services and local guides
Nearby cities, the rest of what we do for Richmond businesses, and the reference pages behind this one.
Running a shop in Richmond?
Stock valuation, GST and PST, and the corporate return handled by one CPA. Send an enquiry.
Remote retail accounting from Abbotsford
The firm operates virtually from Abbotsford and serves Richmond remotely. There is no Richmond office and no staff based there. Everything runs by email, video meeting and secure document exchange, so nothing about the engagement depends on being nearby. Point-of-sale and merchant feeds arrive electronically, so the revenue figure is settled continuously rather than at year end.
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.
