01. M7 Group: your financial partner in Construction :
Canada construction industry is more dynamic than ever. Demand for new homes and commercial space is increasing as the marketplace becomes more competitive. Construction professionals find themselves facing a unique set of opportunities and challenges that will undoubtedly change with future economic cycles. Working with a tax specialist who understands your business’s goals and desired outcomes is the first step toward profitability, growth, and long-term financial success.
At M7 Group, we understand the dynamics of the industry and provide guidance on issues such as working capital, cash flow, profit fade, cost analysis, and accounting systems. As your dedicated partner, we have the experience and resources to ensure your business reaches new heights now and in the future.
02. Building solid partnerships from the ground up :
Running a Construction or Contracting business is time-consuming and complex. Keeping track of cash can be hard for contractors, but a great accountant can help you keep more in your pocket. At M7 Group, our job is to make things easy for you and worry about the details so you can focus on the things that make your business great.
We are Construction and Contracting Industry experts, with over 25 years’ specific knowledge of how money moves through a project. We understand how to help reduce your expenses, limit tax liabilities, and effectively manage payroll and audits. We can take your messy shoebox of expenses, removing that burden and giving you complete financial visibility of your business at your fingertips.
Building success, brick by brick: Crafting your financial foundation with expert accounting in construction.
03. Tax considerations for construction companies :
It is very important to note that profit on construction contracts is taxed by the CRA differently than it is calculated for financial statement reporting purposes. One key difference is that any amounts that have been recognized as revenue for accounting purposes but not yet billed (i.e. not invoiced and due for payment), such as holdbacks, are not considered taxable until they are billed and due. Thus, there is typically a deferral of the recognition of profit for tax purposes than for accounting purposes, which means less tax owing in earlier stages of the contract and more tax owing when the contract is completed.
In other words, if you have a 10% holdback receivable that is withheld on a construction contract’s billings, the contractor would include these holdback amounts as revenue for accounting purposes but not for tax purposes, and would not have to pay any income tax on the holdbacks until they become due, which is usually at the substantial completion of the project and release by the client.
