The IT (information technology) sector in GTA is booming nowadays. New companies continuously created software developers transferring from employment to independent contracting, and a demand for professional accountants is high as never before.
Some of our clients work in the IT sector. Most of them are independent contractors, software developers who registered their corporation and providing software development services from the name of that corporation, so we are well aware of all aspects of the IT contracting business.
We also serve small and medium-sized IT companies that provide website development, hosting, security, mobile application development, and various other services to their clients. IT business is very familiar to us, and we are confident we can provide quality accounting services to your company as well.
An Independent IT consultant is usually a small company owner. The number of transactions is low, and the number of expences not too high, so you can benefit from our least expensive bookkeeping package designed for independent contractors.
At the end of your tax year, along with your tax return, we will prepare a set of financial statements, such as income statement, statement of financial position (balance sheet), cash flow statement, statement of changes in Equity.
Payroll for independent contractors
The majority of our clients prefer dividends plus salary due to the low tax rates for dividends, and for IT consultants who wish to receive a salary, we can calculate PayRun and let you know how much taxes and CPP you need to pay each month. We can also help to open a Payroll account for your corporation and deal with all communication with CRA.
In the case of small or medium-sized IT companies, the amount of work is usually much higher, and we usually have to maintain a more massive list of assets. The examples may include either tangible assets, such as software, car, laptops, camera, phone purchases, or intangible assets, such as trademarks and patents.
Besides, IT companies may have employees or subcontractors, and proper salary calculation is essential for that kind of business.
We are familiar with all sides of IT companies' business and successfully provide accounting services to small and medium-sized IT firms.
At the end of your tax year, we will prepare your corporate tax return with the set of financial statements. If you subscribed to any of our bookkeeping packages, the tax return preparation and filing free of charge. You can learn more about our fees there.
We will calculate your quarterly or yearly HST payments and help in any tax-related questions.
GST/HST Quick Method of Accounting for IT companies
You may consider switching to a Quick tax method to minimize your HST tax payments because IT companies do not have a large number of expenses from which they can claim an input tax credit (ITC). However, with Quick Method, they will still get an ITC on their purchases of capital assets. The Method is designed for a small corporation and usually fits most of our independent contractors. Let us know if you want to discuss this. We will assess your company and let you know if you qualified and what the savings are.
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