Construction

Accounting for Construction

Financial Compliance for Construction Businesses

Construction companies and contractors deal with project-based income, multiple subcontractors, equipment costs, and strict CRA and WCB compliance requirements — making accounting more complex than most industries.

At ADL Accounting, we understand the construction business. Whether you are a sole proprietor, incorporated contractor, or run a growing construction company, we provide the accounting support you need to stay compliant and financially organized.

Construction businesses registered for GST/HST must file returns regularly and charge GST/HST on services. Proper tracking of materials, labour, and subcontractor payments is essential for accurate returns and CRA compliance.

Construction Tax Rules

Key Tax Obligations for Construction Businesses

01 GST/HST Must Be Charged on Most Services

Most construction services are taxable — you must collect and remit GST/HST and file returns regularly with the CRA.

02 Subcontractor Payments Must Be Tracked

All payments to subcontractors must be properly documented — T4A / T5018 slips may be required for subcontractors paid over $500.

03 WCB Registration is Mandatory

All construction employers must register with WorkSafe, report payroll, and pay premiums — non-compliance leads to penalties.

04 Equipment Costs Are Depreciable

Construction equipment can be depreciated through Capital Cost Allowance (CCA) — reducing your taxable income over time.

05 Payroll Compliance is Essential

Construction companies with employees must process payroll correctly, remit deductions, and file T4s on time every year.

06 Project-Based Bookkeeping Is Critical

Tracking income and expenses per project helps manage cash flow, identify profitability, and prepare accurate tax filings.

Construction Deductions

Eligible Deductions for Construction Businesses

Materials & Supplies

All materials, tools, and supplies purchased for construction projects are deductible business expenses.

Subcontractor Costs

Payments to subcontractors for labour and services on projects are fully deductible — keep all records.

Equipment & Vehicle Costs

Construction equipment, work vehicles, fuel, maintenance, and depreciation are all deductible based on business use.

Labour & Payroll Costs

Employee wages, source deductions, and payroll-related costs are deductible against your business income.

Insurance & Bonding

Liability insurance, bonding costs, and WCB premiums are deductible as necessary business expenses.

Home Office & Admin Costs

Office expenses, software, phone, and a portion of home office costs are deductible for self-employed contractors.

Construction Records

Records Every Construction Business Must Maintain

Total Sales & Revenue Records

Payroll Records & Employee T4s

All Supplier & Expense Receipts

GST/HST Returns & Registration

ADL for Construction Businesses

Accounting Services for Construction Businesses

Bookkeeping

We track project income and expenses — keeping your books organized, accurate, and CRA-ready year-round.

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Payroll

We manage employee wages, deductions, CRA remittances, and T4 slips for your entire workforce.

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GST/HST Filings

We calculate and file your GST/HST returns accurately — claiming every eligible input tax credit.

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WCB Filings

We handle WorkSafeBC registration, payroll reporting, and annual WCB filings for full compliance.

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Corporate Taxes

We prepare and file your T2 corporate tax return with full CRA compliance — every year on time.

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CRA Audits / Reviews

Received a CRA notice? We represent you professionally and resolve issues on your behalf.

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Let ADL Accounting Handle the Numbers

Whether it’s bookkeeping, payroll, or tax filings — our team is ready to simplify your finances and keep your business fully compliant.