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Is Construction your Primary Source of Business Income?


The CRA is increasing their focus on non-compliance within the construction industry concerning the payment of subcontractors. For most contracting companies to remain compliant with the CRA regulations they must submit T5018 slips.


What is a T5018 Statement of Contract Payments?


A T5018 is an information return which a payor (contractor) must submit to the CRA reporting amounts paid to payee (subcontractor). If you are an individual, partnership, trust, or corporation involved in construction activities that represent 50% of your business’ income-earning operations, you must adequately submit T5018 information returns and slips.

As a construction company who makes payments to or credits a subcontractor (whether by cheque, cash, barter, or offset against an amount owing), ensure you always record the required information necessary to complete your T5018. T5018’s are due six months after your year-end.


CLICK HERE TO VIEW AND DOWNLOAD THE T5018

There are major penalties for non-compliance!


Construction companies who plan to avoid taxation by concealing payments to subcontractors are committing a criminal offence. If the contractor is caught and criminally charged, they can face fines and a maximum penalty of up to 200% of the tax they tried to avoid.

To learn more contact a GMSPC representative or CLICK HERE

GMSPC Attends Special Event with Rana Chauhan, Chief Investment Strategist of IPC Portfolio Services


On Tuesday (28 May 2019) a few clients and members of the GMSPC team, attended a special event at the Ottawa Hunt and Golf Club featuring IPC Portfolio Services and hosted by Dean Trudeau of OPES IPC Securities Corporation. Rana’s engaging presentation focused on avoiding fear by focusing on the obvious when it comes to your investment portfolio.

Rana Chauhan


Rana’s is responsible for helping financial advisors understand how economic and market events impact their clients’ investments. He achieves this by using “data we have from the past and present with honesty about the unknowable future,” and by not relying “on the use of forecasts, relationships or emotions to guide decisions but to substitute facts, logic and reason.” Rana has travelled the globe in search of the truth concerning the global market – beyond what is said the media. His processes allow him to keep his finger on the market’s pulse and global economic developments.

Rana and IPC Portfolio Services team have a fantastic track record of buying into the right market at the right time – acquiring Facebook stock at IPO, Amazon stock at IPO, Disney stock at the Marvel acquisition, Netflix stock at IPO, and much more.

Rana and Dean concluded the presentation by reassuring their audience not to fear the current dip in the stock market.

Congratulations to IPC on a great event! Your team did exceptionally well, and I’m sure your clients saw the value in your service offering.

GMSPC Attends the Canadian Chamber of Commerce Open House


Last night a few members of our team had the pleasure of attending the Canadian Chamber of Commerce Open House.

Pictured above is the Honourable Perrin Beatty, President & Chief Executive Officer of the Chamber performing a brief speech about his new office space and the construction of it. He was proud to report that the renovation was complete on-time and under-budget.

Their new office, located on the seventeenth floor of 275 Slater Street, not only provides a spectacular view of downtown Ottawa but is equipped with a variety of features which make it an accessible and inclusive workplace for all people. The office was designed with lowered countertops, contrasting floor and wall colours, automatic door openers, and even a relaxation room to help employees with stress reduction.

Thank you to our kind hosts at the Chamber of Commerce for providing us with such an interesting and informative tour of their new workspace.

GMSPC Women Attend Shepherd’s Fashion FUNraiser


On May 7th, a few hardworking women from GMSPC attended the Shepherd’s Fashion FUNraiser in support of the young moms of Youville Centre and their children.

From 6 pm to 9 pm at the Shephard’s Fashion Trainyards location, our annual ladies night out was complete with an exclusive fashion show, wine, appetizers and an opportunity to shop for hours!

10% of Shepherd’s merchandise purchased during the fashion show was proudly donated to the Youville Centre. The event was a success, raising $6,415 in ticket sales alone. What a great night!

Ontario Budget 2019


The Ford government unveiled their first budget on April 11th which aims for balance after the first term. Below are some of the key takeaways from the budget which you should know.

What you should know.


One
BUSINESS



The Ford government has been marketing Ontario as a province which is “Open for Business and Open for Jobs,” did their budget support their campaign promises?

The plan to decrease provincial corporate tax-rates by 1% was scrapped. The Ford government has instead opted for the Ontario Job Creation Investment Incentive (OJCII) which is projected to provide “$3.8 billion in provincial corporate income tax relief over six years” through allowing companies to write off capital expenses right away.

The OJCII closely resembles the federal government’s 2017 Fall Economic Statement


Two
CHILDCARE





The Ontario Childcare Access and Relief from Expenses (CARE) tax credit was introduced to assist households earning less than $150,000 per year. CARE is expected to benefit an estimated 300,000 families. Low-income families will benefit the most from CARE.

The tax credit is determined based on a sliding scale. Families earning less than $20,000 per year may be eligible to receive up to $6,000 per child under the age of seven, and $3,750 per child between seven and sixteen years old.

Three
CANNABIS & ALCOHOL


The budget introduced a $40-million investment over two years to help implement the costs of recreational cannabis. The provincial government administered a mere 25 retail cannabis licences in January 2019. The first legal dispensaries opened their doors on April 1st throughout the province. The Ford government proposed to lift the cap on the number of retail cannabis operating in Ontario and also called upon the federal government to address the national supply shortage of marijuana.

This summer you will be able to enjoy tailgating at professional, semi-professional, and university level events, as the provincial ban on tailgating at sporting events was lifted. Restaurants and bars are also now permitted to advertise “happy hour” and may start serving alcoholic beverages at 9 a.m.

Four
EDUCATION


In January, the Ford government announced $600 million in cuts to student grants and $440 million in funding cuts to universities and colleges. This announcement sparked province wide protests amongst Ontario post-secondary students and prompt a province-wide student walk out.

Although expected, the 2019 budget slashed tuition rates by 10% for students at every publicly funded college and university starting in the 2019–20 school year. Students will also now be allowed to choose the non-essential fees they want to pay.

Read the budget HERE.

5 Accounting Tips for Construction Companies


Ontario’s construction industry has grown by more than 50 percent since 2002 and employs over 400,000 workers in Ontario alone. Below are some accounting tips on how to cut costs, speed up your accounting process and remain competitive in today’s construction industry.

Our professional team of accountants at GMSPC specialize in providing tax, accounting, and consulting services to businesses within the construction industry. Contact a representative from GMSPC today for a free consultation.

Here are 5 Accounting Tips for Your Construction Company


One
Make accounting part of your daily workflow routine


Every day it is essential to update your accounting software with expense reviews, cash flow, employee information and generated invoices. If you fall behind in your accounts, your books can quickly get out of hand. Construction is a fast-moving industry, and it is vital to implement accounting into your workflow.

This doesn’t have to be difficult. 

Modern accounting tools are cloud-based, meaning that they are online and you can access them from a smartphone even when you’re working on site. Implement accounting software (such as Sage or Quickbooks) and make sure you use habitually use it. Quickbooks is easy to learn and is a cost-effective way to keep your accounting practices in order.

By doing this, you’ll avoid undercharging due to missed expenses. You’ll also make the most of your business tax allowances, and if you are audited, you’ll reduce the risk of any nasty surprises.

Two
Use Automation Software and Applications


Advances in technology have made it simple and easy to store backups of your documents. Cloud-based technology offers nearly unlimited storage capabilities at affordable prices. By keeping backups in the cloud, you’ll make sure that your contracting business will have access to the information it needs to function no matter where you happen to be.

Automation software is the key to success in today’s business environment. Automating administrative tasks will undoubtedly make your office staff more productive. Even if automation software only works to save your employees a few minutes per day, those minutes will add up to days worth of added productivity in the long run.

Applications such as Get Jobber offer amazing automation software dedicated to residential and commercial construction companies. Get Jobber will track employee location, automate time-sheets, track project time and material, and much more. Learn more at getjobber.com

Three
Estimating: Profitability, Expenses & Overhead


Improving your accounting procedures starts with an understanding of the different types of costs you can incur working on a project. As your construction business continues to grow, you’ll learn which jobs lead to the most profit and which ones probably aren’t worth your time.

In regular businesses, the distinction between Cost of Goods Sold and Overhead is quite straight forward. In the construction industry, this is not the case. Every construction project or service call is unique, meaning there are varying overhead and profit margins between each job.

It is vital to your business that your project estimators calculate accurate bids consistently. Underbidding on a large-scale project can lead to incurred losses ranging in the hundreds-of-thousands of dollars.

The best way to ensure accurate accounting is to implement a software solution that allows workers at your firm to easily submit data on costing through a platform which integrates with your accounting software. The next step is to categorize those costs effectively, understanding the nuances between expenses/overhead and cost of goods sold, and appreciating the complexity of the projects of which your firm is capable.

Make sure you’re working efficiently and cost-effectively by balancing out your job profits and job costs. This practice will save time on paperwork and ensure that valuable data is never lost, making your firm more profitable as a result.

Four
Know Your Tax Breaks and Deductions


Construction companies may be eligible for several tax deductions, some of which are inclusive in scope, while others are a bit more niche. Below is a list of three tax credits that your construction company may be eligible to receive:  

  • The Apprenticeship Job Creation Tax Credit (AJCTC) is a non-refundable tax credit, and the maximum an employer can claim is $2,000 per year for each eligible apprentice.
  • The Summer Work Experience Program (SWEP) provides wage subsidies to employers in private sector organizations with 50 or fewer full-time employees, to create quality summer work experiences for young people aged 15 to 30 years. Last year in Ontario, the SWEP created 25,914 Summer jobs and subsidized Ontario employers $79,696,623 in wages.
  • The Apprenticeship Training Tax Credit (ATTC) is a refundable tax credit and is available to employers who hire and train apprentices in certain skilled trades. To be eligible for the ATTC, the apprenticeship program would have had to start on or before November 14, 2017.

Five
Know Your Friendly Tax and Accounting Experts at GMSPC


If you work in the construction industry, time is in short supply, and you probably don’t have the time to bury yourself in accounting and tax law. Your best bet is to talk to the professionals in the know.

Our team at GMSPC is are here for all of your tax and accounting needs. We help small and medium-sized businesses, including construction companies, organize their financials, train their accounting staffs, and of course, prepare taxes. We can also help you understand and qualify for tax breaks!


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Recent Blog Posts

Daniel Faubert 26.03.2019 in Blog

Ontario’s construction industry has grown by more than 50 percent since 2002 and employs over 400,000 workers in Ontario alone. […]

Daniel Faubert 18.04.2019 in Blog

The Ford government unveiled their first budget on April 11th which aims for balance after the first term. Below are […]