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Accounting and tax planning for caterers, event planners, wedding planners, personal chefs, bartending services, B&Bs, and vacation rental managers across Canada. Built for project-based revenue, seasonal cash flow, and operations that scale with each event.
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Hospitality services rarely have steady monthly revenue. A wedding planner closes most contracts in spring, runs the events through summer and fall, and barely sees a deposit from January to March. A caterer takes a deposit six months out, buys ingredients the week of, and recognizes revenue only when the event happens. The cash that arrives early is not yet revenue, it's a liability sitting on the books until the work is delivered. Depending on the fiscal year-end, this timing can make a significant difference in how the year closes.
On top of project-based timing, event businesses can have layered revenue: the planner's fee, plus pass-through expenses paid on behalf of the client, plus equipment rentals, plus contracted staff for each event. Each layer has its own GST/HST treatment, and bundling them on a single invoice can create compliance issues. Event staff hired per event need to be classified correctly as contractors or employees, and seasonality means the cash strategy needs to consider tax instalments.
We work with everyone from a personal chef going from sole proprietor to incorporated, to a caterer scaling from 10 to 100 events a year, to a vacation rental manager handling multiple properties across more than one province.
Money received before the event is delivered is not revenue, it's a liability. The deposit becomes revenue only when the event takes place. Treating deposits as revenue inflates earnings, distorts taxes, and creates problems when an event is cancelled or rescheduled. Read more about bookkeeping.
When the planner pays the venue, florist, or DJ on behalf of the client, those are pass-through expenses, not the planner's revenue. The planner's fee is the revenue. GST/HST applies differently to each, and bundling them on a single invoice creates a mismatch with the books and exposure with CRA. Read more about GST/HST/PST.
Servers, bartenders, kitchen helpers, and assistants hired per event are usually contractors, but the actual working pattern can push toward employee classification. CRA reviews control, exclusivity, and integration into the operation. Wrong classification means retroactive CPP, EI, and source deductions across multiple events. Read more about payroll.
Most hospitality businesses generate the bulk of revenue in three or four months and operate on reserves the rest of the year. The cash strategy needs to set aside money for tax instalments, GST/HST remittances, and operating expenses well before the slow months. Treating high season cash as fully available creates problems by the next tax cycle. Read more about tax planning.
When the operation moves from one or two events a month to weekly events, the books need structure. Multi-revenue streams, contractor classification, equipment depreciation, and inventory tracking all enter the picture. The first 100 events under the new structure shape how the business runs for years.
When the invoice combines the planner's fee with vendor pass-through costs, GST/HST gets applied incorrectly and the financial statements misrepresent the actual revenue. Splitting the invoice from the start, with clear line items and correct tax treatment, prevents amendments later.
Most contracts close in spring, events run through summer and fall, and the slow months arrive with tax instalments and recurring expenses still due. Building a cash strategy that holds back enough for the off-season, plus instalments and GST/HST remittances, prevents the year-end surprise.
When the operation involves managing properties on behalf of owners, the manager's revenue is the management fee, not the rental income that flows to the owner. GST/HST on the management fee, owner statements, and reporting that tracks each property separately need to be in place from the start.
When mandatory service charges, voluntary tips, and pooled tips are mixed in the books or treated the same way for GST/HST purposes, the result is either unpaid GST/HST on what should have been taxable, or overpaid tax on what should have been excluded.
Short-term rental income is generally taxable for GST/HST purposes, unlike long-term residential rent. Many operators miss this until a CRA letter arrives. The flip side is that ITCs (Input Tax Credits) on cleaning, supplies, platform fees, and maintenance are often missed too, leaving money on the table.
Site visits, venue tastings, dress fittings, and travel for inspiration easily blur the line between personal and business. Without clear documentation of business purpose, CRA can disallow the expenses on review, with interest and penalties on top.
Personal expenses paid by the corporation, money pulled out without payroll or dividend declaration, and a shareholder loan debit balance that grows year after year. The bookkeeping ends up extremely tangled, and CRA can deem the withdrawals as taxable income if not corrected within the strict deadlines.
Strong summer months followed by quiet winters create cash gaps that often manifest as GST/HST arrears, late payroll remittances, missed filings, and accumulating debt. Excessive owner draws during peak season make this worse. Planning for the off-season needs to start during the high season, not after.
Airbnb, VRBO, Square, Stripe, and similar platforms charge fees and deposit only the net amount in the operator's account. Recording only the deposit understates revenue and the related GST/HST liability, because GST/HST applies to the gross amount. CRA's matching programs cross-check platform-reported revenue against tax filings, and discrepancies trigger reviews.
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