You Focus on Your Clients.
We'll Focus on Your Books.
Marketing, creative, digital, PR — agency finances are complex. Multiple clients, project-based billing, freelancer payments, payroll, and GST/HST on every invoice. We handle all of it so your energy stays on the work that grows your agency.
What Agency Owners Deal With
You Invoiced January — But When Did You Earn It?
Agencies often bill retainers upfront — a client pays in January for Q1 work. Under accrual accounting, that revenue is recognized as the work is delivered, not when the cash arrives. The timing difference between cash received and revenue earned affects how much tax you owe this year vs. next. Without proper accrual bookkeeping, your financials overstate or understate income, leading to surprises at tax time and inaccurate planning.
Employees vs. Freelancers
Agencies rely on a mix of staff and contractors. Misclassifying a worker as a contractor when they're really an employee triggers CRA payroll assessments — for you, not them.
GST/HST on Pass-Through Costs
When you bill clients for third-party costs — ad spend, freelancer fees, printing, stock — the GST/HST treatment depends on how the cost flows: pure disbursement (passed at cost, no markup), or principal billing (you bought it, you resell it). Getting it wrong means either over-collecting GST/HST from clients or under-remitting to the CRA. The distinction between disbursement and markup also affects your income — and your ITCs.
Services for Agencies
Monthly Bookkeeping
Income and expenses tracked by client and project. Know exactly which accounts and engagements are profitable — and which are costing you money.
Payroll & T4As
Employee payroll processed every cycle. Freelancer T4As issued every February. Worker classification documented correctly from day one.
GST/HST Filings
GST/HST collected from clients, input tax credits on supplier costs, and returns filed on schedule. Media pass-throughs handled correctly.
Year-End Support
Year-end close with working papers ready for your CPA. Deferred revenue, prepaid expenses, and project accruals all adjusted properly.
T4As for Freelancers
If your agency uses freelancers or contractors paid more than $500 in the year (non-incorporated), you must issue T4A slips by the last day of February. We handle identification, calculation, and filing — so you're never caught off guard by this annual obligation.
CRA Support
Worker classification audits and GST/HST reviews are common for agencies. We respond on your behalf and handle CRA correspondence professionally.
Agency Questions — Answered
Freelancers paid for specific projects are typically self-employed and receive a T4A slip if you pay them more than $500 in a calendar year. Employees (regular hours, working under your direction, integrated into your operations) require a T4. Misclassification is a frequent CRA audit trigger for agencies. We document relationships correctly and issue the right slips every February.
Most agency services — creative, strategy, web, marketing — are taxable supplies. GST/HST is mandatory once revenues exceed $30,000 annually. If you pass through third-party costs like media buys or stock, the GST/HST treatment depends on whether you bill as principal or agent. We ensure you handle this correctly from the start.
Yes. We set up your bookkeeping to track income and direct costs by client or project. This shows you which engagements are actually profitable — after subcontractor costs, tools, and team time — so you can price future work accurately and decide which clients to grow.
Most small agencies remit monthly, by the 15th of the following month. We calculate CPP, EI, and income tax deductions every pay period, process your payroll, and handle all remittances on time — so you never face late penalties from the CRA.
It depends on how the contract is structured. Pure disbursements — costs passed through at cost with no markup, where the client is the real buyer — are generally not considered income for the agency. But marked-up pass-throughs are income (the full billed amount), with the underlying cost as a deductible expense. The CRA looks at whether your agency bore the risk of loss on the purchase. If you paid the supplier and the client later refused to reimburse, were you on the hook? If yes, you were likely acting as principal — not as a pure agent. We help you structure your client agreements and bookkeeping to minimize tax exposure on pass-through costs and ensure your GST/HST treatment is correct.
Useful Articles for Agencies
Salary vs. Dividends: How Canadian Business Owners Get Paid
CPP contributions, RRSP room, and the tax integration theory — a side-by-side comparison for incorporated owners.
T4A Slips for Contractors: When and How to File
Pay a contractor more than $500? You may need to issue a T4A. Here's who qualifies and how to file by the deadline.
Your Agency Deserves Clean Books.
We Deliver Them Every Month.
Tell us about your agency and we'll send you a custom, no-obligation quote within 1 business day.