From inventory costing and supply chain accounting to year-end filings and CRA compliance, Vault CPA delivers financial clarity for manufacturers and wholesale distributors operating across British Columbia.
Book a Free Consultation
We track direct materials, labour, and overhead to accurately determine cost of goods manufactured, manage GST on domestic sales and input tax credits on raw material purchases to maximize cash recovery, prepare year-end financial statements and T2 corporate returns on time, and advise on capital cost allowance for equipment and machinery to reduce taxable income.
We reconcile purchase invoices, customer billings, and volume rebates to ensure gross margin accuracy, manage GST/HST obligations across provincial distribution channels and intercompany transactions, prepare T2 returns and financial statements for corporate distribution entities accurately, and provide ongoing bookkeeping to keep payables and receivables organized and current.
We implement and maintain inventory costing systems using FIFO, weighted average, or specific identification methods under ASPE, identify and document write-downs and obsolescence for tax and financial reporting purposes, integrate cloud accounting tools with inventory platforms to automate reconciliation and reduce manual error, and advise on cost allocation methods to strengthen product profitability analysis.
We review your production model, inventory system, and corporate structure to identify costing gaps, CRA compliance requirements, and tax planning opportunities.
We reconcile inventory, supplier invoices, and production costs to ensure your financials accurately reflect cost of goods sold and gross margin.
We prepare your T2 corporate return, GST/HST filings, and capital cost allowance schedules — accurately and on time, with full CRA compliance.
Once filings are complete, we remain available for equipment acquisition planning, inventory system improvements, and year-round financial guidance.
Whether you manufacture goods, distribute products, or manage a complex supply chain, we bring the financial rigour your operations and margins depend on.
Book a Free ConsultationCRA permits FIFO, weighted average cost, and specific identification. For manufacturers, inventory spans raw materials, work-in-process, and finished goods — each tracked separately. Your method affects cost of goods sold and taxable income. We implement the right approach and keep values audit-ready.
The federal M&P credit reduces the corporate tax rate on qualifying Canadian manufacturing income. Not all production qualifies — assembly, packaging, and distribution may or may not meet the criteria. We determine whether your operations qualify and claim the credit correctly on your T2.
Most manufactured or distributed goods are subject to GST. In B2B transactions between registered businesses, the tax is largely neutral as buyers claim input tax credits. Sales to end consumers or across borders require more careful tracking. We manage registration, confirm supplies, and handle remittances.
Capital equipment is generally depreciated under CRA's Capital Cost Allowance system. The Immediate Expensing incentive allows CCPCs to fully expense eligible property up to $1.5M per year. Whether full expensing is optimal depends on your income and projections. We model it annually.
Retain purchase orders and supplier invoices, production records, shipping and receiving documents, inventory count records, payroll records, and GST and PST remittance documentation. Job costing and production run records support COGS calculations and are the first items CRA requests in a review.
Most established manufacturers operate through a corporation, providing access to the small business tax deduction, earnings deferral, and the lifetime capital gains exemption on eventual sale. A holding company can protect retained earnings from operating risk. We design the right structure at the right stage.
Transactions between related businesses must be priced at fair market value under CRA's transfer pricing rules. Non-arm's-length pricing triggers reassessments and penalties. We document intercompany transactions correctly, establish appropriate pricing, and ensure your corporate structure holds up under CRA scrutiny.
A warranty reserve is a liability set aside at sale to cover expected future costs. Repair expenses are actual costs when claims are made. CRA has specific rules on deductibility when accrued. We structure your warranty accounting to maximize deductibility within CRA guidelines.
