Construction Company Accounting in Markham

Page summary

Specialized construction accounting designed for the unique financial management needs of construction companies. From project costing to HST compliance, we handle it all.

• Construction companies face unique accounting challenges: managing multiple projects, tracking costs by project, handling progress billing, managing subcontractors, and complying with complex HST rules.
• Accurate project profitability tracking by job
• Proper progress billing and revenue recognition
• HST optimization on construction contracts
• Streamlined subcontractor payment management
• Construction Operations Review: We understand your construction business: project types, bidding process, job management system, subcontractor relationships, and equipment. This helps us set up systems matching your workflow.
• Project Accounting Setup: We implement project tracking by job code, capturing all costs (materials, labor, subcontractors, equipment), and setting up progress billing. Each project's profitability is clearly visible.
• Compliance & Optimization: We ensure HST compliance on construction services, manage holdback liabilities, process T4As for subcontractors, and identify SR&ED credit opportunities.
• Financial Management: Monthly job-level profitability reports, equipment depreciation optimization, and tax planning to minimize liability on strong project years.

Related pages

• Bookkeeping Services: Related accounting and tax support.
• Corporate Tax Services: Related accounting and tax support.
• Tax Planning Services: Related accounting and tax support.
• GST/HST Compliance: Related accounting and tax support.
• Corporate Tax Services: Industry guidance connected to Construction Company Accounting in Markham.
• CRA Audit Representation: Industry guidance connected to Construction Company Accounting in Markham.
• Contact ARMalik: Discuss construction company accounting in markham with a Markham CPA.

Common questions

How do I track holdbacks and progress billings for tax?

Under Ontario's Construction Act, holdbacks (typically 10% of each progress draw) are withheld until the lien period expires. For tax purposes, you recognize revenue as work is performed under percentage-of-completion, not when holdbacks are released. The holdback receivable sits on your balance sheet until collected. Proper tracking matters at year-end: if your fiscal year closes mid-project, you need defensible cost-to-complete estimates to calculate income accurately.

What's the difference between completed-contract and percentage-of-completion for tax?

Under percentage-of-completion (PoC), you recognize revenue proportionally as work is completed each period — the method required under ASPE for long-term contracts and preferred by CRA. Under completed-contract, revenue is deferred until the project is substantially done. CRA generally requires PoC for construction companies; using completed-contract without a qualifying reason can expose you to reassessment. We ensure your revenue recognition policy is documented and defensible.

How do I handle subcontractor T5018 reporting?

The T5018 (Statement of Contract Payments) must be filed annually for each subcontractor paid more than $500 in a calendar year for construction services. CRA uses T5018 data to cross-reference income reported by subcontractors — gaps trigger audit flags. The deadline is 6 months after your fiscal year-end. We compile T5018s from your payment records and file on time, and we also ensure your sub agreements support independent contractor classification if audited.

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