When to hire an accountant: The warning signs

At a Glance. Three thresholds most commonly trigger the need to hire an accountant in Quebec: reaching $30,000 in revenue, which makes registration for the GST (5%) and QST (9.975%) mandatory; hiring your first employee, which triggers source deductions to be remitted to Revenu Québec and the CRA; and incorporation, which requires filing T2 and CO-17 returns with full financial statements. These are the milestones that come up most frequently in the 15,000+ requests Bankeo has received since 2023. The golden rule: hire before you cross the threshold, not after. Median budget: approximately $3,000 per year. All amounts are in Canadian dollars.

Do you need an accountant as soon as you get your first client, or only when things get complicated? The right answer is neither “right away” nor “later”, it depends on specific thresholds, most of which are laid out in black and white in Quebec and Canadian tax laws. This article reviews the warning signs that Bankeo has observed in the requests it has received since 2023, along with the specific obligations behind each one. And when the time comes, our guide to Questions to Ask an Accountant Before Hiring Them will help you choose the right one.

What the inquiries received by Bankeo reveal about the right time

Since 2023, Bankeo has received more than 15,000 requests from entrepreneurs looking for an accountant, and 1,248 contracts were signed through the platform between 2024 and 2026. When looking at what prompts an entrepreneur to reach out, three main categories of triggers stand out: an approaching tax threshold (GST/QST being the main ones), a change in business structure (hiring the first employee, incorporation), and an unforeseen event (delayed tax filings, a letter from the CRA or Revenu Québec, or required tax instalments). The common thread among most of these requests: they come after the threshold has been crossed, when the pressure is already mounting. Here is an overview of the triggers and the ideal time to act for each one.

Threshold 1: The $30,000 mark and registration for GST/QST

This is the number one trigger among requests received by Bankeo, and the most straightforward. As long as your taxable sales remain below $30,000 over four consecutive calendar quarters, you’re considered a small supplier: registration for GST and QST is optional. As soon as you exceed this threshold, registration becomes mandatory. You must then charge 5% GST and 9.975% QST (for a combined rate of 14.975% in Quebec), file your returns at the required frequency, and remit the taxes collected, which do not belong to you.

What an accountant brings to the table at this specific time: choosing a filing frequency tailored to your cash flow (annual, quarterly, or monthly), invoicing set up at the correct rates from day one, and, most importantly, claiming input tax credits (ITC) and input tax refunds (ITR) on your business expenses. Many entrepreneurs who file their own returns leave these amounts on the table or claim them incorrectly, which raises questions from Revenu Québec.

Threshold 2: Your first hire and source deductions

The second major trigger observed in inquiries: the transition from sole proprietor to employer. As soon as you issue your first paycheck, you must withhold and remit source deductions (DAS): to Revenu Québec: Quebec income tax, contributions to the Quebec Pension Plan (QPP), the Quebec Parental Insurance Plan (QPIP), and the HSF; to the CRA: federal income tax and Employment Insurance. In addition, you must register with the CNESST and, every February, file T4 slips and RL-1 slips.

The risk of error is real: source deductions filings follow a strict schedule, usually monthly, and delays result in automatic penalties. It’s also an area where mistakes tend to repeat themselves: an incorrect payroll setup will occur every pay period until someone catches it. An accountant sets up the employer account, the payroll software, and the filing schedule once, and does it correctly. Before signing your first employment contract, be sure to run the numbers using our guide to The actual cost of an employee in Quebec : The listed salary is far from the total cost.

Threshold 3: Incorporation, the accounting tipping point

The third major trigger: incorporating a corporation. As a self-employed individual, you used to report your business income on your federal T1 and Quebec TP1 forms, along with the appropriate schedules. Once incorporated, everything changes: the corporation is a separate legal entity that files its own federal T2 return and its CO-17 return with Revenu Québec, along with properly prepared financial statements, accrual-basis accounting, and up-to-date records. The annual visit to the accountant is no longer optional.

But an accountant’s real work begins before incorporation: determining whether incorporating is worth the cost. It becomes worthwhile when your profits consistently exceed your personal needs (tax deferral then comes into full play thanks to the small business deduction), when liability protection is important, or when a client or a financing arrangement requires it. On the other hand, incorporation comes with recurring costs: two annual corporate returns, financial statements, and more rigorous bookkeeping. It’s typically at this stage that a CPA, a member of the Ordre des CPA du Québec, steps in to handle the financial statements and planning. And once incorporated, the first key decision is the compensation structure: our guide Salary or Dividends for Business Owners in Quebec provides the right guidance.

Other common signals in inquiries

Beyond the three major thresholds, four situations consistently come up in the requests Bankeo receives, often on an urgent basis:

• The backlog is piling up. Two or more late filings: Penalties and interest accrue with both the CRA and Revenu Québec, and catching up becomes a project in itself. The longer you wait, the higher the bill gets; taking action right away is always the least expensive option.
• A letter from the CRA or Revenu Québec. Notice of assessment that doesn’t match your return, requests for supporting documents, audits: response deadlines are strict, and solid documentation makes all the difference.
• Tax instalments. When your tax liability exceeds the specified thresholds, the CRA and Revenu Québec require quarterly payments. Without proper planning, these payments can come at the worst possible time for your cash flow.
• When you’re running out of time. If bookkeeping is eating into your evenings, delaying your invoicing, or pushing back your proposals, the math is simple: your billable time is worth more than the cost of hiring an accountant. The same logic applies if a bank asks you for clean financial statements for financing.

How much does an accountant cost when you’re approaching a threshold?

Concerns about cost delay many decisions, often for no good reason. In Quebec, a typical business pays a median of about $3,000 per year in accounting fees, and most engagements range from $500 to $6,000, depending on the industry, transaction volume, and business structure. These figures are based on actual fees from 1,248 engagements arranged through Bankeo (2024-2026), out of more than 15,000 requests received; the Bankeo Fee Barometer provides detailed price ranges by service. A self-employed individual who outsources their T1 and TP1 filings falls at the lower end of the range; an incorporated company with payroll and tax returns falls higher. You can also browse the Vetted accountants in the Bankeo network to compare profiles before submitting a request.

Frequently asked questions

At what revenue level should you hire an accountant in Quebec?

There is no law requiring you to hire an accountant, but reaching the threshold of $30,000 in taxable sales over four consecutive calendar quarters makes GST/QST registration mandatory: this is the first trigger observed in the requests received by Bankeo. Hiring an accountant just before reaching this threshold allows you to start off on the right foot, with the correct filing frequency and billing at the correct rates.

Should I hire an accountant before registering for the GST and QST?

It’s not mandatory: Registration is done online through Revenu Québec, which administers both taxes in Quebec. An accountant can help you choose the filing frequency that best suits your cash flow, set up invoicing at the correct rates (5% GST and 9.975% QST), and claim input tax credits and input tax refunds without errors.

What obligations come with hiring your first employee in Quebec?

Starting with your first payroll, you withhold and remit tax withholdings: Quebec income tax, QPP, QPIP, and employer contributions to the HSF to Revenu Québec; federal income tax and Employment Insurance to the CRA. On top of that, you’ll need to register with the CNESST and file T4s and RL-1 slips every February. This is one of the most common reasons people reach out to Bankeo.

Do you need an accountant to incorporate?

The incorporation process itself takes place at the Registraire des entreprises or Corporations Canada, often with the assistance of a lawyer. The accountant gets involved beforehand to confirm that starting the company is worth the cost (tax deferral, small business deduction, liability), and afterward to handle the financial statements, the federal T2 form, the Quebec CO-17 form, and the decision between salary and dividends.

How much does an accountant cost in Quebec?

Expect a median fee of about $3,000 per year, with most engagements ranging from $500 to $6,000 depending on the industry, volume, and structure, based on actual fees from 1,248 engagements secured through Bankeo (2024-2026), out of more than 15,000 requests received. The Bankeo Fee Barometer provides a breakdown of price ranges by service, from self-employed individuals to incorporated companies.

Self-Employed with income under $30,000: Do I really need an accountant?

Not necessarily. Below the threshold, without employees or a corporation, you can manage your T1 and TP1 forms on your own as long as they’re properly maintained. Hiring an accountant becomes cost-effective as soon as deductible expenses start to add up, tax instalments become due, or you approach the $30,000 threshold: it’s better to prepare for GST/QST registration than to be forced into it.

Official sources

1. Revenu Québec - Registration for the GST and QST
2. Revenu Québec - Source Deductions and Employer Contributions
3. Canada Revenue Agency - Corporate Income Tax (T2 Return)
4. Revenu Québec - Corporate Income Tax (Form CO-17)
5. Ordre des CPA du Québec