An RCIC starting their first solo practice
Setting up the trust account, deciding whether to incorporate from day one, and structuring the retainer agreement template that the practice will use for years. Decisions that compound.
Industries
Accounting for immigration services
Accounting and tax planning for RCICs, immigration lawyers, and immigration consulting firms across Canada. Built for practices managing trust accounts, retainer-based revenue, and clients across multiple countries.
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The reality of running an immigration practice
Immigration services live in a different operational world from most professional practices. Money received from a client is not revenue, it sits in a trust account until the work is performed. Cases stretch over months or years, and revenue gets recognized in pieces as milestones are hit. Clients pay in different currencies. Government fees passed through to the client are not income, they're disbursements. Each of these patterns has tax consequences that show up at year-end if not handled correctly.
RCICs operate under CICC rules: trust account separation, retainer agreements with milestone-based revenue recognition, annual trust reporting, and document retention for at least seven years. Immigration lawyers operate under their provincial Law Society with similar but distinct trust account rules.
We work with practices at every stage: a newly licensed RCIC starting solo, an immigration lawyer transitioning from a big firm to their own practice, and consulting firms with offices in Canada and partner agents abroad.
Our experience with immigration services
- 01
Trust accounts and CICC/Law Society compliance
RCICs and immigration lawyers operate trust accounts under strict separation rules. Monthly reconciliation, annual trust reporting, and spot audits by the regulator are part of the routine. Penalties for mishandling include suspension or loss of licence. Solid bookkeeping is what keeps the trust account audit-ready.
- 02
Retainers and deferred revenue recognition
Money received from a client at the start of a case sits as a liability, not as revenue, until each milestone is delivered. The retainer agreement defines when each portion can be recognized. Cases span months or years, and revenue cannot be booked all at once. This is one of the areas where bookkeeping setup matters most for the practice.
- 03
Disbursements vs professional fees billing
Government application fees, biometrics fees, and processing fees passed through to the client are disbursements, not revenue, and not subject to GST/HST. Professional fees for the consultant or lawyer's work are revenue and are subject to GST/HST. Mixing them on an invoice creates compliance issues with both the regulator and CRA.
- 04
GST/HST on services to non-resident clients
When the client lives outside Canada at the time the service is provided, the consultation may qualify as zero-rated, no GST/HST charged, but ITCs still claimable. The rules depend on residency status, location of consumption, and the type of service. Wrong treatment leaves money on the table or creates exposure. Read more about GST/HST/PST.
Common situations we see
A practice managing trust account reconciliation for a CICC compliance review
When the regulator schedules a spot audit, the trust account reconciliation needs to be clean, the retainer agreements need to map to the recognized revenue, and the document retention needs to be in order. Preparation cannot start the week before.
A consultant unsure how to invoice (separating disbursements from professional fees)
When the invoice mixes government fees with the consultant's own fee, GST/HST applies to the wrong portion, and the trust account doesn't reconcile. Splitting the invoice correctly from the start avoids amendments later.
A firm hiring contractors outside Canada (translators, recruitment agents)
Engaging a translator in Brazil or a recruitment agent in another country requires a clear setup: contractor agreement, withholding rules where applicable, and how the payment flows from the corporation. Common pitfall is treating these as if they were domestic contractors.
A practice receiving foreign currency from international clients
Clients paying in USD, EUR, or BRL means converting to CAD for accounting, dealing with foreign exchange gains and losses, and timing the recognition correctly. Multi-currency operations need a process from day one, not after the year is closed.
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