Accountant for consultants

Whether you’re an IT, management, HR, marketing, or engineering consultant, you face the same reality as thousands of self-employed professionals and incorporated companies in Quebec: projects that come and go in fits and starts, T4A forms arriving from multiple clients, hourly or flat-rate billing to figure out, and the question that comes up every year: whether to stay self-employed or incorporate. Not to mention the pitfall of being classified as a personal service business (PSB) when billing a single client.

Find the ideal accountant for your practice, one who understands consultants: income smoothing, salary-versus-dividend optimization, GST/QST, tax instalments, and retirement planning without an employer-sponsored plan. We’ll connect you with the right accountant for this sector, as many times as needed, and we’ll stay by your side. No obligation.

• Smooth out income that varies from one assignment to the next and maintain a cash reserve of 3 to 6 months between contracts.
• Choosing the right time to incorporate: Incorporation pays off when you leave profits in the corporation, not before.
• Balancing salary and dividends every year: RRSP and QPP benefits on one hand, simplicity and tax deferral on the other.
• Avoid being classified as a personal service business (PSB) if you bill a single client: you’ll lose the small business deduction and your expenses won’t be deductible.
• Register for the GST/QST as soon as your taxable income exceeds $30,000 over four consecutive calendar quarters.
• Planning for tax instalments: In Quebec, these instalments are required as soon as the net tax payable exceeds $1,800, both to the CRA and to Revenu Québec.
• Building Your Retirement Without an Employer-Sponsored Plan: RRSP, TFSA, or even an Individual Retirement Plan (IRP) once you’re incorporated.

• File Form T2125 with the federal government and Schedule TP-80 in Quebec if you are self-employed; file Forms T2 and CO-17 if you are incorporated.
• Registration for GST (5%) and QST (9.975%) filing requirements begins at $30,000 in taxable income, followed by filings and payments based on your reporting frequency.
• Tax instalments are due on March 15, June 15, September 15, and December 15 when the thresholds are met.
• Federal and Quebec source deductions (DAS) if your company pays you a salary: income tax, QPP, QPIP, HSF, plus T4 slips and RL-1.
• QPP contributions as a self-employed worker (employee and employer shares) calculated on your tax return.
• Matching the T4A forms received from your clients with your reported income: the CRA and Revenu Québec cross-check the data.
• Retain records and supporting documents for six years, including the business travel log.

Salary or dividends if I’m incorporated? It depends on your cash flow needs, your desire to contribute to the QPP and build RRSP benefits, and your retirement plan. A salary builds benefits but requires source deductions; a dividend simplifies payroll without building social security coverage. An accountant matched by Bankeo calculates the optimal mix each year, and the matching service is free.

What expenses can a consultant deduct? Home office expenses (pro-rated based on the area used), cell phone and Internet, travel and business meals (50% deductible), training, professional membership fees, insurance, and computer equipment via capital cost allowance. The key: Keep your personal and business accounts separate, and retain your supporting documents for six years. Your accountant will organize everything and identify any overlooked deductions.

How much does an accountant cost for a consultant? According to the Bankeo Fee Barometer, based on 1,248 real-world cases (2024-2026), the median for this sector is around $1,500 per year. The cost varies depending on whether you’re a corporation or a self-employed individual, as well as the volume and complexity of your work. The Bankeo matching service is free, you pay your accountant directly.

How can you switch accountants as a consultant without any stress? It’s simpler than you think: your new accountant will retrieve your past tax returns, T4A slips, and GST/QST history, often directly from your previous accountant. The best time to make the switch is between filing periods, after you’ve filed your taxes or at the end of your fiscal year. Bankeo will connect you, for free, with an accountant who specializes in working with consultants, and we’ll support you throughout the transition.

Local or Remote Accountant for a Consultant? Your practice is already digital: online billing, remote engagements, clients throughout Quebec and beyond. A remote accountant who understands the unique challenges faced by consultants (EPSP, salary and dividends, GST/QST) often provides better service than a nearby general-practice accounting firm. Bankeo prioritizes finding the right match of expertise, whether local or remote, based on your preference.

I bill only one client: How can I avoid being classified as an EPSP? A risk arises when your incorporated business places you in a situation that resembles employment: a single client, a set schedule, and the client’s tools. The consequences are serious: loss of the small business deduction and disallowed expenses. An accountant analyzes your situation, documents your independence (multiple clients, your own Tools, business risk), and adjusts your structure as needed. This is exactly the kind of situation where Bankeo matches you with the right accountant, for free.