Accountant for wholesalers and distribution companies

As a distributor or wholesaler in Quebec, your business runs on the rhythm of incoming pallets and outgoing orders: inventory turnover, cost of goods sold, volume discounts, and supplier rebates. Net margins are slim, and working capital is constantly stretched between customers who pay in 30 or 60 days and suppliers who must be paid first. Your accounting must keep up with this pace; otherwise, your margins will erode without you even noticing.

We’ll find you the ideal accountant for the distribution industry, for free: a professional who specializes in inventory valuation, multi-provincial taxes (GST, HST, QST), imports, and accounts receivable. We’ll introduce you to as many candidates as you need, we’ll stay by your side, and you’ll pay only your accountant, never Bankeo. No obligation.

• Tight net margins (often 2% to 5% in distribution): every percentage point of gross margin, every volume discount, and every supplier rebate must be closely monitored.
• Inventory Turnover and Valuation (FIFO or Average Cost): Obsolete or slow-moving inventory must be written down before the end of the fiscal year.
• Working capital under strain: customers pay in 30 or 60 days, while suppliers must be paid sooner; the average collection period becomes a vital indicator.
• Accounts receivable and bad debt: credit limits, provisions, and GST/QST recovery on uncollectible accounts.
• Imports: Exchange rates, customs duties, and shipping costs must be included in the landed cost to determine the true margin per product.
• Sales in multiple provinces: tax is based on the destination (GST 5%, HST 13-15%, QST 9.975%), with tax codes that must be configured correctly.
• Growth in volume: Revenue quickly exceeds the $500,000 cap for the small business deduction, requiring adjustments to tax planning.

• Registration for GST (5%) and QST (9.975%) once the small supplier threshold of $30,000 is exceeded, a threshold that is almost immediately reached in the distribution sector, with monthly or quarterly filings depending on volume.
• Rules Regarding Place of Supply: HST collected based on the destination province for sales outside Quebec; zero-rated exports require proof of shipment to be retained.
• Year-end inventory count and valuation in accordance with the lower-of-cost-or-market method to determine the cost of goods sold.
• Annual T2 (federal) and CO-17 (Quebec) corporate tax returns, with tax instalments due throughout the fiscal year.
• Withholdings from warehouse, sales, and delivery payroll: income tax, QPP, QPIP, employment insurance, HSF, followed by T4 and RL-1 forms to be filed in February.
• Imports: CBSA customs accounts (GCRA), GST paid at the border to be claimed as an input tax credit, supported by customs documents.
• Retention of records and supporting documents (invoices, bills of lading, inventory reports) for six years, as required by the CRA and Revenu Québec.

How can I properly value and track my inventory? An accountant specializing in this sector selects the appropriate valuation method (FIFO or weighted average cost), applies the lower-of-cost-or-market rule, and ensures the accuracy of your cost of goods sold. They also oversee year-end inventory counts and the write-down of obsolete inventory. We’ll connect you with the right accountant for this industry, for as long as you need, at no cost.

I sell in several provinces: How do I handle GST, HST, and QST? Taxes vary by destination. In Quebec, you collect the 5% GST and the 9.975% QST; elsewhere in Canada, it’s either the GST alone or the HST (13% to 15% depending on the province), and exports are zero-rated. Your accountant sets up the correct tax codes, files the returns, and ensures you receive your input tax credits.

How much does an accountant cost in this sector? According to the Bankeo Fee BarometerBased on 1,248 real-world cases (2024-2026), the median fee for an accountant in Quebec is around $3,000 per year, ranging from $500 to $6,000 depending on the industry and complexity of the work. The Bankeo matching service is free: you pay your accountant directly at standard market rates.

How can I switch accountants without disrupting my distribution operations? The best time is after the end of the fiscal year, once the inventory count and tax returns are complete. The new accountant will collect your records (inventory, accounts receivable and payable, taxes) directly from the previous accountant, a common and well-established practice. We’ll match you, for free, with an accountant who specializes in the distribution industry, and we’ll be by your side throughout the entire transition.

Local or Remote Accountant for a Wholesaler? How it works: Both approaches work very well: your sales, inventory, and taxes are already managed in cloud-based systems, and a remote accountant monitors them in real time. A local accountant can schedule a helpful warehouse visit during inventory counts. We’ll match you with the profile that fits your situation, whether local or remote, the choice is yours.

Can I get a refund for the GST paid at customs on my imports? Yes: The 5% GST paid at the border can be recovered as an input tax credit, provided you keep your customs documents (GCRA declarations, commercial invoices, bills of lading). Customs duties, however, are not recoverable: they are included in the landed cost of your products. An accountant specializing in this sector ensures these credits and safeguards your actual profit margin per product.