Zachary Cummings, CPAAccounting for the trades
Accountant for electricians
I do bookkeeping, HST, payroll and tax returns for electrical contractors, and personal tax returns for electricians who work for someone else.
Free and no obligation. I don't bill by the hour.
- 5.0 on Google · 26 reviews
Registered firm
Running an electrical contracting business
In Ontario, only electrical contractors licensed by the Electrical Safety Authority (ESA) can do electrical work for hire. A licensed contractor has to be a Master Electrician or have one working for them, and needs at least $2 million in liability insurance.
Those are costs of running the business. Licence fees, insurance and the rest belong in your books as business expenses, recorded when you pay them.
Materials, HST and the van
Most jobs are part labour and part material. If you're registered for HST, you can generally claim back the HST you paid on wire, panels and fixtures, but only if you can show the receipts. Snap the supplier bill with your phone and Dext files it in QuickBooks.
The van works the same way. To claim the business use, CRA expects a logbook with where you went, why and how far for each work trip.
Apprentices
Electrician (construction and maintenance) 309A is a compulsory trade in Ontario, so an apprentice needs a registered training agreement. Construction electrician is also a Red Seal trade.
That matters at tax time. If you employ an eligible apprentice in the first two years of their apprenticeship, the federal Apprenticeship Job Creation Tax Credit is 10% of their eligible wages, up to $2,000 per apprentice per year.
Electricians on a T4
If you work for someone else and buy your own tools, CRA's tradesperson's tools deduction can be up to $1,000 a year, with conditions. I do personal returns too, and most cost $80 to $120.
What I handle for electricians
- Supplier bills captured and matched with Dext
- HST tracked monthly, with input tax credits claimed
- Payroll for apprentices and journeypersons, with T4s at year-end
- The apprenticeship tax credit claimed when you qualify
- WSIB premiums tracked
- Year-end statements and your T2 or personal return
Monthly bookkeeping plans run $400 to $2,000+ a month depending on how much I'm handling, and most personal returns are $80 to $120.
See pricing →Common questions
Can I claim the apprenticeship credit for every apprentice?
Only for eligible apprentices: in a Red Seal trade, in the first two years of a registered apprenticeship. It's 10% of eligible wages, up to $2,000 a year per apprentice. If you can't use it all in one year, the unused part can be carried back 3 years or forward 20.
Are my ESA licence and insurance business expenses?
Costs you pay to run the business, like your licence fees and liability insurance, are generally deductible business expenses. I make sure they're recorded and claimed.
I do side jobs on top of my regular job. What do I report?
Side work is self-employment income, so it goes on your personal return along with your T4. Keep track of what you earned and spent on those jobs and I'll report it properly. Keep ESA's rule in mind too: electrical work for hire needs a licensed electrical contractor.
Other trades I work with
Want the books off your plate?
Book a free 20-minute call. There's no sales pitch and no obligation, and I'll get back to you the same business day.
- 5.0 on Google · 26 reviews
- Registered firm