Accountant for Excavation Companies in Ontario and Across Canada
We put your excavators and trucks in the right CCA class, file your T5018 subcontractor slips, accrue your holdbacks and work-in-progress, track your coloured fuel, and job-cost every dig, trench and demolition so you see real profit. Whether you do site prep and earthmoving, demolition, septic and utility trenching, or foundation and grading work, we handle the construction books, the WSIB and the bonding financials, smooth the seasonal cash flow, and plan the salary, dividends and eventual sale of your excavation corporation — with AFFORDABLE flat fees.
AFFORDABLE Excavation Company Tax Accountant
An excavation company lives or dies on margin, and heavy equipment, aggregate and fill, subcontracted hauling and holdbacks all eat into it before the profit ever reaches your T2. The season is shortened by frost, the cash swings hard, and construction is a standing CRA audit target. That is why you need an excavation contractor accountant who knows the trade. At Gondaliya CPA, we specialize in job costing and corporate tax planning for excavation companies, putting your excavators and trucks in the right CCA class, filing your T5018 slips, tracking your coloured fuel, and accruing holdbacks and work-in-progress — AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.
As an earthmoving and site-work company accountant, we work with site-prep and earthmoving excavators, demolition contractors, septic and utility trenching contractors, and foundation and grading crews across Ontario, with year-round support rather than a once-a-year scramble. We tell you plainly what you can deduct, what you cannot, and where the real profit sits on each dig.
Let us handle the numbers so you can focus on the earthmoving that actually pays you.
Our Official Partners
Accounting That Understands How an Excavation Business Actually Works
Running an excavation company comes with financial pressures a desk-bound business never faces. You carry a fleet of heavy equipment, you pay subcontracted hauling and crews, you buy aggregate and fill and pay to dispose of soil, and you wait on holdbacks while a season shortened by frost closes in on you. At Gondaliya CPA, we understand the financial reality of an earthmoving and site-work business and provide practical, excavation-focused solutions across the GTA and all of Ontario.
Stay Compliant and Minimize Your Excavation Company Tax
For an excavation contractor, staying onside with CRA and WSIB and paying the least legal tax are the same job. We keep every filing on schedule while claiming every equipment and job cost the T2 allows, so nothing is missed and nothing invites a reassessment.
Accounting & Tax Experts for Excavation Companies
- AFFORDABLE + Fully Licensed CPA Firm
- Business and Corporate Tax Expert
- Small & Medium Business Expert
- Accounting, bookkeeping, and tax filing
- Certified CPA
- 1300+ 5-star Google reviews
- 30-Day Money-Back Guarantee
- 60-Day Fees Matching Policy
Why Choose Our Accounting Services for Excavation Companies?
Tax Planning — Equipment & Trade Expertise
We know the fleet: excavators, dozers, backhoes and loaders in Class 38 at 30%, dump trucks in Class 10, tools in Class 8. We plan the section 85 rollover, protect the $500,000 Small Business Deduction, and set up the $1.25M LCGE for an eventual sale.
Consulting — Job-Costed Construction Bookkeeping
Our bookkeeping tracks aggregate, labour, subs and equipment against every job, so you know the real margin on a foundation dig versus a trenching run versus a demolition. We carry work-in-progress and holdback, and tie your HST returns to job revenue.
CRA Representation — Trade Audit & Payroll
When CRA questions your subcontractor classification, your T5018 slips, or your crew payroll, we prepare the response, defend the subcontractor-versus-employee position, reconcile WSIB, and pursue relief on Form RC4288 where penalties came from a prior error.
Bookkeeping — Growth, Financing & Bonding
We prepare the CPA financial statements equipment financing and surety bonding require, structure the books so a lender sees stable margins, and get you ready to hire crews and take on larger municipal and commercial excavation contracts.
Google Reviews
Excavation Company Clients
Excavation Company Tax and Accounting Services in Ontario
Corporate Tax Filing for Excavation Companies
Professional T2 preparation with Schedule 8 CCA on your fleet, work-in-progress and holdback, and CRA compliance on every line.
Accounting & Bookkeeping for Excavation Companies
Job-costed bookkeeping with financial statements, clean records, and monthly reporting built for an earthmoving and site-work business.
Corporate Tax Planning for Excavation Companies
Smart tax planning to protect the Small Business Deduction, time equipment purchases, and plan salary, dividends and sale.
Catch-Up Corporate Tax Filing for Excavation Companies
File overdue T2 and T5018 years, rebuild missing job records, and get back into CRA compliance with accurate catch-up support.
GST/HST Filing for Excavation Companies
AFFORDABLE HST filing with full input tax credits on aggregate, fuel and equipment, matched to your T2 to avoid CRA penalties.
Corporate Tax Cleanup for Excavation Companies
Correct equipment CCA classes, restate holdback and work-in-progress, and bring every filing fully compliant and up to date.
CRA Audit Resolution Services for Excavation Companies
Expert support for subcontractor-versus-employee audits, T5018 penalties, WSIB and cash-deposit reviews, with confidence.
CPA Compilation Report (Notice to Reader) for Excavation Companies
CPA-compiled financial statements that surety bonding companies and equipment lenders accept for municipal and MTO contracts.
Incorporation Services for Excavation Companies
Full incorporation including NUANS, articles, share structure, and the section 85 rollover from your unincorporated excavation business.
Accounting & Tax Services Tailored for Excavation Companies
Real, practitioner-level CPA expertise for site-prep and earthmoving, demolition, septic and utility trenching, and foundation and grading contractors across Ontario — built for how an excavation business actually runs.
- We prepare your T2 excavation corporation return with GIFI on Schedule 100, reporting excavation contract revenue and site work income on their correct lines, so CRA’s automated review does not flag your file for a construction desk audit that reaches back three years.
- We claim capital cost allowance on Schedule 8 with your excavators and bulldozers in CCA Class 38 heavy equipment at the 30% Class 38 CCA rate, because most excavation companies under-claim the fleet and hand CRA tax they never owed.
- We place your dump trucks in CCA Class 10 dump trucks at 30% and your buckets and attachments in Class 8 excavation tools on Schedule 8, so a CRA equipment review cannot disallow an inflated first-year claim.
- We accrue work-in-progress construction on incomplete digs at year-end so revenue and cost match on your T2, because leaving a half-finished site-servicing contract off the books overstates one year’s profit and invites a CRA reassessment within the three-year window.
- We record the 10% construction holdback as a holdback receivable accrual rather than income until it is certified and released under the Construction Act, so your corporation is not taxed on cash it has not yet been paid.
- We build job costing in Sage 50 construction accounting so aggregate and fill cost, crew wages and subcontractor hauling post to each project, giving the real margin per dig and the six years of records CRA expects behind cost of sales on your T2.
- We run your day-to-day accounting and bookkeeping for excavation companies in QuickBooks Online with Hubdoc receipt capture on every equipment fuel cost and equipment repairs and parts, so you never lose the 13% HST input tax credit or a deduction CRA would otherwise deny.
- We connect Jobber for excavation contractors to your file so quotes and progress draws on each site-prep job post as work-in-progress inventory rather than as revenue CRA would otherwise tax in full before your December 31 year-end.
- We reconcile bank, equipment lease and credit accounts monthly in Xero for excavation business and run pay through Wagepoint, remitting the PD7A payroll remittance so a missed monthly remittance never triggers the 10% CRA penalty on late source deductions.
- We track coloured fuel off-road diesel and soil disposal cost separately on each job, so the fuel-tax rebate on diesel your equipment burns off public roads is claimed and the 13% HST on contaminated-fill disposal is recovered rather than buried in general expenses.
- We set the dividend vs salary excavation mix for your corporation’s owners, paying enough T4 salary to build RRSP room while the balance flows as dividends, so the combined tax stays near the 12.2% Ontario small business rate rather than your personal rate.
- We keep your active income under the $500,000 Small Business Deduction, applying the section 125 small business deduction, and we watch CRA’s associated-corporation and passive-income rules that grind the limit down toward the general rate.
- We model equipment lease vs buy excavation on a new excavator and time the purchase before your fiscal year-end, so CRA’s half-year rule and the 30% declining-balance rate on Class 38 give the largest first-year deduction against a profitable season.
- We handle seasonal smoothing by projecting instalments and setting aside the 13% HST and payroll you collect while timing aggregate and equipment purchases, answering how do I manage seasonal cash flow so a frost-shortened winter never leaves you short when CRA and WSIB come due.
- We plan at least two years ahead so your shares qualify for the $1.25M Lifetime Capital Gains Exemption, purifying the corporation of non-active assets so selling my excavation business tax is deferred and a future buyer’s purchase escapes tax CRA would otherwise collect.
- We handle catch-up corporate tax filing for excavation companies, reconstructing revenue and costs from bank deposits and job records where no bookkeeping exists across the last three unfiled years, so CRA cannot arbitrarily assess your excavation corporation’s income on its own estimate and overcharge you.
- Late filing costs the 5% plus 1% per month late filing penalty of the balance owing up to twelve months, so we file your oldest unfiled T2 first to stop the penalty compounding and limit the arrears interest CRA charges.
- We prepare the unfiled T5018 statement of contract payments for every year you paid hauling and trucking subcontractors, filing them with the catch-up returns so CRA does not add the $100 per slip T5018 penalty on top of the late T2.
- We file an RC4288 taxpayer relief request to cancel penalties and interest on the arrears where illness, a prior bookkeeper’s error or genuine hardship applies, covering the ten years CRA allows and saving your excavation business real money.
- We rebuild the undepreciated capital cost pools across the unfiled years so missed CCA on your fleet is recovered within the four-year window, and any recapture excavation equipment on machines you sold is reported correctly rather than surfacing later as a CRA reassessment.
- Because excavation and grading and trenching income are taxable at 13% HST, we handle your HST filing for excavation companies, set the right tax codes on every invoice, and answer do I charge HST on excavation so CRA never assesses tax you should have charged.
- You must register once taxable revenue passes the $30,000 HST registration threshold across four consecutive quarters, and we track the exact quarter you cross so CRA cannot assess back-tax on excavation invoices where you never collected it.
- We claim the input tax credit aggregate, equipment fuel and machine purchases carry, recovering the 13% HST on line 108 of your return instead of overpaying CRA and quietly eroding the margin on every excavation contract.
- Because your credits on aggregate and equipment are large, we compare the regular method against the GST quick method construction each year, available until taxable supplies pass $400,000, and elect whichever remits less HST to CRA.
- We reconcile the HST on your returns to the revenue on your T2 for construction CRA compliance, because CRA’s matching program compares the two and an excavation company whose figures disagree is among the fastest files selected for a three-year audit.
- We file an amended T2 excavation return to move excavators and backhoes a prior preparer buried in the wrong class into Class 38, restoring the 30% capital cost allowance and the undepreciated pool CRA lets your corporation claim every year going forward.
- We clean up the shareholder loan and report it on Schedule 50 shareholder loan, because a balance the owner owes past two year-ends is added to personal income under ITA subsection 15(2) shareholder loan, a costly surprise we prevent.
- We review whether your regular labour are truly subcontractors under the subcontractor vs employee excavation tests, because CRA can reassess back CPP, EI and payroll over the three open years for wages that should have been on a T4, so we fix the treatment first.
- We restate prior years where the work-in-progress accrual and holdback receivable were ignored, matching revenue to cost under the percentage of completion method, so a season’s profit is not double-counted across two years on the T2 and CRA is not taxing your corporation twice.
- We recover the fuel-tax rebate on the dyed diesel your machines burn off public roads that a prior preparer expensed without claiming, and reclassify contaminated-fill disposal miscoded to capital, filing the adjustment before the four-year CRA reassessment window closes.
- When CRA opens a construction audit, our CRA audit help for excavation companies manages the entire file and answers the T5018, equipment and wage queries inside the deadlines, so a review of one year does not expand into a reassessment of three prior years.
- Where CRA proposes penalties for late or missing T5018 subcontractor reporting, we assemble the contract-payment records and argue the assessment down or away, saving an excavation contractor who pays dozens of subs the $100 per slip that adds up fast.
- We resolve WSIB premium remittance reviews by reconciling your reported wages and subcontractor payments to your T4 summary, answering how do I handle WSIB, because WSIB treats an unregistered sub as your worker and back-charges premiums over the two years it can reach.
- When CRA runs indirect verification of income on a cash-heavy excavation business, comparing bank deposits and lifestyle to reported demolition revenue, we prepare the source-and-application-of-funds reconciliation and answer the query within the 30-day deadline before CRA assesses the gap.
- We file the Notice of Objection within 90 days of a CRA reassessment and pursue taxpayer relief where a prior accountant’s error caused the penalties, protecting your right to the Tax Court and saving interest your excavation corporation should not carry.
- We prepare the CSRS 4200 CPA compilation report for excavation companies, the notice to reader a surety underwriter and a bank require across two fiscal years before they will issue a bond or approve equipment financing.
- We build the working-capital and equity picture surety bonding excavation underwrites, presenting holdbacks and unbilled work on the balance sheet and tying them to the T2, so your excavation bonding financial statements qualify you for MTO capacity set at ten times working capital.
- Lenders financing a new excavator or dump truck want two years of compiled statements showing stable margins, so we present your equipment, debt and job revenue with the T2 in the format a bank credit desk expects, getting heavy equipment financing approved faster.
- For prequalification with municipalities and the Ontario Road Builders’ Association, we produce reviewed or audited statements where a compilation is not enough, presenting the percentage of completion method so your excavation company clears the fair-wage and bonding thresholds a $500,000-plus public contract demands.
- The CSRS 4200 report discloses that no audit or review was performed and sets the basis of accounting, delivered within 30 days so a conditional bonding approval and prompt payment Ontario excavation milestones are not lost before the digging season starts.
- We handle incorporation services for excavation companies under the Ontario Business Corporations Act, answering should I incorporate my excavation business by giving you the limited liability and roughly 12.2% Ontario small business rate an unincorporated business never offered against equipment debt and WSIB claims.
- We complete the section 85 rollover on Form T2057, a section 85 rollover excavation move that transfers your excavators, dump trucks and goodwill into the corporation at elected amounts, deferring the 50% taxable capital gain and recapture a straight sale would trigger for CRA.
- We complete your WSIB registration before the first crew starts, because construction work makes coverage mandatory from day one and an unregistered excavation contractor faces retroactive premiums going back the two years WSIB can reach plus penalties that immediate registration avoids.
- We open the corporation’s CRA Business Number, GST/HST and payroll for excavation companies accounts within the first 30 days, set the source-deduction remittance schedule, and close the old unincorporated accounts so your business never remits the same revenue twice.
- We set the opening balance sheet, minute book, share classes and first fiscal year-end 53 weeks out, so dividends can later be split, the business is ready for an excavation business valuation or sale, and the first T2 and CRA balance-due date are deferred.
Excavation Company Tax & Equipment Check
Six quick questions on your equipment CCA, subcontractor slips, holdbacks, coloured fuel and job costing. No fee shown.
1. Are you filing T5018 slips for your hauling and trucking subcontractors?
2. Are your excavators, dozers and trucks in the right CCA class?
3. Are you accruing holdback and work-in-progress at year-end?
4. Are you tracking coloured off-road diesel and claiming the fuel-tax rebate?
5. Are you job-costing each dig, trench and demolition to see its true margin?
6. Is your excavation business incorporated?
Free CPA Consultation for Excavation Companies
Case Studies: Excavation Company Accounting & Tax
Toronto Excavation Corporation — Equipment CCA Reclassified (Class 38)
The problem: A Toronto excavation corporation ran two excavators, a bulldozer, a backhoe and a pair of dump trucks that a prior preparer had dumped into a single low-rate CCA class, so the company under-claimed capital cost allowance every year while a frost-shortened season pushed profit straight to the general corporate tax rate. Holdbacks and work-in-progress were never accrued, which inflated the profit CRA taxed in a year two large site-servicing contracts closed.
What we did: We rebuilt Schedule 8, moving the excavators, dozer and backhoe into Class 38 at 30% and the dump trucks into Class 10, filed an amended T2 to recover the missed depreciation, and accrued the 10% holdback and work-in-progress so revenue matched cost across the seasons.
The result:
- Saved $29,400 in corporate tax in the first corrected year
- Recovered $44,800 of previously unclaimed CCA on the fleet
- Smoothed profit so the Small Business Deduction was preserved
Hamilton Site-Work Contractor — Subcontractor, T5018 & Payroll Fixed
The problem: A Hamilton site-work and earthmoving contractor paid hauling and trucking subcontractors in cash and by e-transfer, filed no T5018 Statement of Contract Payments for three seasons, and treated a full-time crew as subcontractors — each unfiled slip an exposure to the $100-per-slip penalty and a live subcontractor-versus-employee reassessment risk on CPP, EI and payroll, all riding on a set of books kept in spreadsheets.
What we did: We rebuilt the books in Sage 50, filed all outstanding T5018 returns, reclassified the true employees onto payroll through Wagepoint with proper PD7A remittances and WSIB coverage, and filed an RC4288 taxpayer relief request on the accumulated penalties.
The result:
- All T5018 penalties cancelled under Form RC4288
- Payroll and WSIB brought fully compliant before CRA review
- Reduced bookkeeping and payroll time by 9 hours per week
Ottawa Demolition & Foundation Contractor — Holdback, WIP & Bonding
The problem: An Ottawa demolition and foundation-excavation contractor bidding municipal and MTO work was booking every progress billing as immediate revenue and ignoring the 10% Construction Act holdback, so its financial statements swung wildly and understated working capital — and its surety had cut the bonding limit, blocking the contractor from tendering on the larger site-preparation contracts it wanted.
What we did: We restated the books to carry work-in-progress and holdback receivable, applied percentage-of-completion on the longer contracts, prepared CSRS 4200 compiled financial statements the surety accepted, and tied the whole file to a clean T2 with GIFI.
The result:
- Bonding capacity restored and raised for larger MTO tenders
- Saved $21,300 in tax by correcting premature revenue recognition
- Financial statements accepted by the surety and the bank
Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.
Kickoff (Document Request)
Collect prior T2 returns, your equipment list, job and contract records, subcontractor list, WSIB account, fuel records, and bank statements.
First 30 Days (Cleanup & Setup)
Set up QuickBooks Online, Sage 50 or Foundation Software, build the job-costing chart of accounts, classify equipment CCA, and configure T5018 and coloured-fuel tracking.
Monthly Close
Monthly reconciliations, receipt capture, job costing, HST tracking, and subcontractor payment logging.
Quarterly Planning Review
Salary and dividend mix, HST, equipment timing, work-in-progress and holdback review, and bonding position.
Year-End Close & T2 + T5018 Filing
Trial balance, financial statements with WIP and holdback, T2 with GIFI, T5018 filing, and CRA preparation.
Get Your Excavation Company Taxes Done Right Today
Affordable Pricing for Excavation Companies
We believe in clear, upfront pricing so you know exactly what to expect. All fees include HST.
- Tax Preparation (Corporation) — From $400
- Tax Return Filing (Corporation) — From $400
- Tax Compliance Audit — FREE CRA audit support for our clients
- Tax Strategy — FREE for our clients
- Accounting Base Plan — From $100 per month
- Bookkeeping Management — Free for our Accounting clients
- Financial Reporting — Free for our Accounting clients
- Business Formation — Flat $35
- Incorporation Process — Flat $35
- Entity Setup Assistance — Flat $35
- Full-Service Payroll — From $125 per month
Payment is by Interac e-Transfer to info@gondaliyacpa.ca only. Security question: Not Applicable, as auto-deposit is enabled.
Meet Your Lead Excavation Company Accountant
Meet your lead excavation company accountant. As your construction and corporate tax adviser, you deal with the same two people every year.
What Our Clients Say
1300+ five-star reviews from excavation contractors and small-business owners across Ontario and Canada.
Serving Excavation Companies Across Ontario
Our CPA team provides specialized accounting and tax solutions for earthmoving and site-work contractors throughout Ontario. We understand how an excavation business actually operates, what CRA and WSIB look at on a construction file, and how to keep the fleet, the holdbacks and the bonding financials in order.
Toronto (ON)
55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada
+1 (647) 212-9559
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Mississauga (ON)
5373 Bullrush Dr, Mississauga, ON, Canada
+1 (647) 212-9559
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Brampton (ON)
4 Starhill Crescent, Brampton, ON L6R 2P9, Canada
+1 (647) 212-9559
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Scarborough (ON)
24 Clementine Square, Scarborough, ON M1G 2V7, Canada
+1 (647) 212-9559
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Vaughan (ON)
19 Cabinet Crescent, Woodbridge, ON L4L 6H9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Oshawa (ON)
210 Durham St, Oshawa, ON L1J 5R3, Canada
+1 (647) 212-9559
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Ottawa (ON)
2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada
+1 (647) 212-9559
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Etobicoke (ON)
60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada
+1 (647) 212-9559
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Hamilton (ON)
70 Starling Dr, Hamilton, ON L9A 0C5, Canada
+1 (647) 212-9559
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Guelph (ON)
1155 Gordon St, Guelph, ON N1L 1S8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Windsor (ON)
4387 Guppy Ct, Windsor, ON N9G 2N8, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
North York (ON)
150 Graydon Hall Dr #912, North York, ON M3A 3B2, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Excavation Company Accounting & Tax FAQs
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Excavation Company Accounting & Tax Done Right.
T2 filing, Class 38 equipment CCA, T5018 subcontractor slips, holdback and work-in-progress accrual, coloured fuel, HST, WSIB, job costing and bonding financials under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.