Construction Bookkeeping & Tax Services in Scarborough
Job costing, T4A vs T5018 contractor classification, WSIB compliance, and HST quarterly returns — handled correctly, so your projects stay profitable and CRA-ready.
What We Handle for Construction Contractors
Construction bookkeeping is different from general small-business bookkeeping. Revenue comes in as progress draws. Costs split across labour, materials, and subcontractors. Holdbacks sit on the books for months. Seasonal cash flow creates gaps. And the CRA pays close attention to how contractors classify their workers and report subcontractor payments.
At CanMore Accounting, we work with general contractors, specialty trades, and renovation businesses across Scarborough and the GTA. Our bookkeeping is set up to track the metrics that matter in construction — per-project profitability, subcontractor costs, and equipment utilization — not just overall business totals.
- Job costing per project — revenue, labour, materials, subcontractor costs
- T4A vs T5018 contractor classification (CRA-compliant)
- WSIB premium tracking and clearance certificate monitoring
- HST quarterly returns and input tax credit tracking
- Equipment depreciation (CCA classes 8, 10, 43)
- Holdback accounting under the Ontario Construction Act
Job Costing
Every project gets its own cost ledger. We track labour, materials, subcontractors, and equipment per job so you can see whether you priced a contract correctly — and adjust your bids going forward.
T5018 Filing
Construction subcontractor payments require T5018 slips, not T4As. We prepare and file these accurately to avoid CRA penalties and ensure your subcontractors have the correct documentation.
Holdback Accounting
Ontario's 10% statutory holdback under the Construction Act must be tracked separately in your books. We set this up correctly from the start so your AR never overstates what you can actually collect.
Common Bookkeeping Problems in Construction
Most construction bookkeeping problems come from the same three sources. If any of these sound familiar, it is worth fixing them before CRA does.
Late or missing invoices
When invoices go out late — or progress draws get billed without the supporting cost documentation — your books show a distorted picture of profitability. We help you build a billing schedule tied to project milestones, so revenue and costs align in the same period.
Mixed personal and business expenses
Using a personal credit card for materials, or running personal charges through a business account, creates clean-up work at year-end and raises CRA red flags. We establish clear account separation early and catch mixed transactions during monthly reconciliation.
Scope-creep cost overruns not tracked
When a job runs over budget due to scope changes and those extra costs are not documented, you lose the ability to charge for them — or to defend a change order if there is a dispute. Job-level cost tracking is your paper trail for both billing and tax purposes.
Software We Support
QuickBooks Online has solid job-costing capabilities for construction businesses — project tracking, class tracking for job types, and subcontractor expense categorization. We configure QuickBooks with a chart of accounts specific to construction, set up project tags so every transaction links to a job, and connect your bank feeds so reconciliation happens in near real-time.
If you are already using Sage 50 or a different platform, we work within your existing setup. If you are running your books on spreadsheets, we can migrate you to cloud accounting without losing your history.
Ready to get your construction books in order?
Call 416-477-0644 or request a free consultation.
Book a Free ConsultationFrequently Asked Questions
What is the difference between a T4A and a T5018 for subcontractors?
T5018 is used specifically for construction subcontractors — it reports amounts paid for construction services and is filed with the CRA separately from the T4A. If your subcontractor provides construction services (labour, materials, or both), you typically issue a T5018. T4A applies to other self-employed service providers. Getting this wrong can trigger CRA audit flags, so it is worth getting right from the start.
How does holdback accounting work in Ontario?
Under Ontario's Construction Act, owners must withhold 10% of each progress draw until the lien period expires. This holdback needs to be tracked separately in your books — it is not revenue until released, and it affects your AR balance. We set up the correct accounts and workflows so your financial statements reflect holdback accurately at every stage.
When do I need to file HST returns as a contractor?
Most construction contractors file HST quarterly, though annual filing is available if your annual taxable revenues are under $1.5 million. HST on construction services is generally 13% in Ontario. Input tax credits on materials and subcontractor invoices can offset what you owe — tracking those credits carefully is one of the most direct ways to reduce your HST remittance.
Do I need a separate account for each project?
You do not necessarily need separate bank accounts, but your bookkeeping should track revenue and costs per project. QuickBooks and Sage both support job-costing features that let you assign transactions to specific projects. This gives you a real profitability picture per job rather than just an overall business total — which is essential if you want to know which types of contracts are actually making money.
How does WSIB affect my bookkeeping?
WSIB premiums are calculated based on your gross payroll and must be remitted on schedule — typically quarterly or monthly depending on your account type. If you use subcontractors, you may also have clearance certificate obligations before making payment. We track your WSIB obligations as part of payroll reconciliation and flag any clearance certificate gaps before they become a liability.
Related Services
Construction Bookkeeping Done Right
Job costing, T5018 filing, WSIB tracking, and HST returns for Scarborough contractors. No spreadsheet chaos.
Get a Free Quote- Per-Project Job Costing
- T5018 Filing
- WSIB Compliance
- Quarterly HST Returns