Accountant for Restoration Companies in Ontario and Across Canada
We recognize your insurance-claim revenue correctly as the claim is approved and completed, carry your mitigation-and-reconstruction jobs as WIP, hold back the Construction Act 10%, put your air movers and dehumidifiers in the right CCA class, file your subcontractor T5018s, run your technician payroll, and plan the tax on your restoration company. Whether you do water damage and flood restoration, fire and smoke restoration, mould remediation and abatement, or storm, catastrophe and reconstruction work, we handle the restoration books, the insurance-claim revenue recognition and Xactimate reconciliation, the percentage-of-completion WIP and holdbacks, the specialized equipment depreciation, the subcontractor T5018 filing, and the IICRC-certified technician payroll with WSIB, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.
AFFORDABLE Restoration Company Tax Accountant
A restoration company lives on insurance money it has not fully earned yet: your losses are billed through insurers and adjusters under an assignment of benefits and estimated in Xactimate, your jobs run in phases from emergency mitigation to full reconstruction that must be carried as work-in-progress, you sub out trades on nearly every job, and your air movers, dehumidifiers and air scrubbers all have to be depreciated. That is why you need a restoration companies accountant in Ontario who knows the trade. At Gondaliya CPA, we specialize in insurance-claim revenue and WIP bookkeeping and corporate tax planning for restoration companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.
As a property restoration accountant, we work with water damage and flood restoration companies, fire and smoke restoration crews, mould remediation and abatement specialists, and storm, catastrophe and reconstruction contractors 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 margin sits on each claim, mitigation and reconstruction job.
Let us handle the numbers so you can focus on the work that actually pays you.
Our Official Partners
Accounting That Understands How a Restoration Company Actually Works
Running a restoration company comes with financial pressures a desk-bound business never faces. Your work is paid by insurers through adjusters and estimated in Xactimate, your jobs run in phases carried as work-in-progress, the Construction Act keeps 10% back on your reconstruction, and your IICRC-certified technicians have to be paid the moment a loss is called in. At Gondaliya CPA, we understand the financial reality of an insurance-funded mitigation and reconstruction business and provide practical, restoration-focused solutions across the GTA and all of Ontario.
Stay Compliant and Minimize Your Restoration Company Tax
For a restoration company, staying onside with CRA, WSIB and the Ministry of Labour and paying the least legal tax are the same job. We keep every filing on schedule while claiming every piece of equipment, vehicle and job cost the T2 allows, so nothing is missed and nothing invites a reassessment.
Accounting & Tax Experts for Restoration 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 Restoration Companies?
Tax Planning — Restoration & Equipment Expertise
We know the assets: air movers, dehumidifiers and air scrubbers in Class 8 at 20%, service trucks in Class 10 at 30%, small tools in Class 12, computers in Class 50. We plan the section 85 rollover, protect the $500,000 Small Business Deduction, and set up the $1.25M LCGE on sale.
Consulting — Insurance-Claim & WIP Bookkeeping
Our bookkeeping reconciles your Xactimate estimates to the general ledger, recognizes insurance-claim revenue as the claim is approved and completed, carries mitigation and reconstruction jobs as WIP, tracks the 10% holdback, and job-costs every loss so you see the real margin.
CRA Representation — Claim, WIP & T5018 Audit
When CRA questions your claim-revenue timing, your holdback and WIP treatment, your T5018 slips, or your HST on insured work, we prepare the response, reconcile the records, and pursue relief on Form RC4288 where penalties came from a prior error.
Bookkeeping — Payroll, Subcontractors & Sale
We run IICRC-certified technician and project-manager payroll with WSIB, track subcontractor payments for the T5018, value your materials and contents inventory, and prepare the disposition and section 85 planning so an eventual sale qualifies for the $1.25M exemption.
Google Reviews
Restoration Company Clients
Restoration Company Tax and Accounting Services in Ontario
Corporate Tax Filing for Restoration Companies
Professional T2 preparation with Schedule 8 CCA on your air movers, dehumidifiers and trucks, insurance-claim revenue, WIP and holdback, and CRA compliance on every line.
Accounting & Bookkeeping for Restoration Companies
Claim-billing and job-costed bookkeeping reconciled to Xactimate, with financial statements, clean records, and monthly reporting built for a mitigation and reconstruction business.
Corporate Tax Planning for Restoration Companies
Smart tax planning to protect the Small Business Deduction, time equipment purchases, claim the apprenticeship credit, and plan salary, dividends and sale.
Catch-Up Corporate Tax Filing for Restoration Companies
File overdue T2 and HST years, rebuild missing claim revenue and WIP from Xactimate and job records, and get back into CRA compliance.
GST/HST Filing for Restoration Companies
AFFORDABLE 13% HST filing on your insured restoration work with full input tax credits on equipment, materials and fuel, matched to your T2.
Corporate Tax Cleanup for Restoration Companies
Correct insurance-claim revenue timing, restate WIP and holdback, reclassify mitigation advances to deferred revenue, fix equipment CCA, and catch up T5018.
CRA Audit Resolution Services for Restoration Companies
Expert support for claim-revenue-timing, WIP and holdback, T5018 and HST-on-insured-work audits, reviews and objections with confidence.
CPA Compilation Report (Notice to Reader) for Restoration Companies
CPA-compiled financial statements that insurers, surety bonding companies and equipment lenders accept for vendor programs and financing.
Incorporation Services for Restoration Companies
Full incorporation including NUANS, articles, share structure, and the section 85 rollover of your existing restoration business.
Accounting & Tax Services Tailored for Restoration Companies
Real, practitioner-level CPA expertise for water damage, fire and smoke, mould remediation and reconstruction restoration companies across Ontario — built for how an insurance-funded mitigation and reconstruction business actually runs.
- We prepare your T2 corporate return with GIFI on Schedule 125, reporting insurance claim revenue and reconstruction revenue on their correct lines against the $500,000 small business limit, so CRA never flags your restoration corporation for a construction desk audit.
- We claim capital cost allowance on Schedule 8, placing your air movers, dehumidifiers and air scrubbers in CCA Class 8 at the 20% declining-balance rate, because most restoration companies misclassify this equipment and hand CRA the tax on depreciation they never actually claimed.
- We put your service trucks in CCA Class 10 at 30% and your small hand tools under $500 in CCA Class 12 at 100%, so a CRA equipment review cannot disallow an inflated first-year deduction on your service vehicles and rigging gear.
- We carry work in progress on incomplete reconstruction jobs on a percentage-of-completion basis so revenue matches cost on your T2, because booking a $300,000 rebuild as one lump overstates a single year’s profit and invites a reassessment.
- We value your materials inventory under ITA section 10 at the lower of cost or market and release deferred mitigation advances as the work is performed, so CRA does not tax your corporation at 12.2% on a claim deposit collected before the job is done.
- We build job costing in QuickBooks Online so equipment, technician wages and subcontractor costs post to each water damage and fire and smoke job, because a 5% costing error on cost of sales erases the profit CRA expects your T2 to show.
- We reconcile your Xactimate and Xactanalysis estimates to the general ledger in Sage 50, capturing every material and fuel purchase through Dext, so you hold the six years of records CRA requires and never lose a 13% input tax credit to a missing slip.
- We set up deferred-revenue schedules that release each emergency-mitigation advance as the drying and demolition is performed, so a $15,000 mitigation deposit collected the day of the loss is booked as a liability, not day-one income CRA taxes early.
- We track work-in-progress and the 10% holdback receivable on every reconstruction job, documenting site progress in DASH and Encircle, separating billed-but-unearned amounts from earned revenue, so your balance sheet shows the holdback CRA cannot tax until the lien period ends.
- We reconcile bank, loan and credit-card accounts monthly in Xero and run technician payroll through Wagepoint, remitting the PD7A so a missed source deduction never draws the 10% CRA payroll penalty on your on-call crew wages.
- We set the salary versus dividend mix for owners, paying T4 salary that keeps your active income inside the 12.2% Ontario small business rate while dividends draw down retained reconstruction profit, so the combined tax CRA collects is minimized.
- We protect the section 125 small business deduction so your first $500,000 of active income stays lightly taxed, watching CRA’s associated-corporation and passive-income rules that grind the limit down and push claim revenue to the general rate.
- We claim the apprenticeship credit on Schedule 31, worth 10% of an eligible apprentice’s wages up to $2,000 per apprentice, because a restoration company training abatement and reconstruction apprentices routinely leaves this credit unclaimed against its T2.
- We time your drying-equipment and moisture-meter purchases before your December 31 year-end so the half-year rule still delivers a large first-year Class 8 capital cost allowance at 20%, deferring tax CRA would otherwise collect on contents restoration revenue.
- We plan years ahead so your shares qualify for the $1.25M lifetime capital gains exemption, purifying the company of non-active assets and watching the section 84.1 anti-surplus rule, so a future sale of your restoration business is tax-deferred.
- We handle the catch-up corporate tax return, reconstructing unfiled T2 revenue and costs from bank deposits, Xactimate estimates and adjuster records where no bookkeeping exists, so CRA cannot arbitrarily assess your restoration company $10,000 or more above what you owe.
- Late filing costs the 5% plus 1% per month late-filing penalty on 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 your restoration corporation.
- We prepare the unfiled T5018 information returns for every year you paid restoration subcontractors, filing them with the catch-up returns so CRA does not add the $100 per slip penalty on top of the late T2 you already owe.
- We rebuild your insurance-claim revenue and percentage-of-completion WIP across the unfiled years from Xactanalysis and progress records, so back-filed returns report income in the right year instead of bunching several claims past the $500,000 small business limit.
- We file an RC4288 taxpayer relief request to cancel penalties and interest where a catastrophe surge, illness or a prior bookkeeper’s error applies, covering the ten calendar years CRA allows and cancelling up to 100% of the late-filing penalty on an accepted request.
- Because your restoration services are a taxable supply at 13% HST even when the insurer pays on the insured’s behalf, we set the right tax codes on every claim invoice and reconcile the return so CRA never assesses tax you should have charged.
- You must register for GST/HST once taxable revenue passes the $30,000 small-supplier threshold across four consecutive quarters, and we track the exact quarter you cross so CRA cannot assess back-tax on mitigation and reconstruction work where you never collected it.
- We claim the input tax credits on your equipment, materials, equipment rental and fuel, recovering the 13% HST on line 108 of your return instead of overpaying CRA and eroding the margin on every water damage job.
- We handle the HST timing on emergency-mitigation advances, remitting the 13% tax when you invoice the deposit even though you recognize the revenue as the drying is performed, so CRA’s tax point and your deferred-revenue schedule never fall out of step.
- We reconcile the HST on your returns to the revenue on your T2, because CRA’s matching program compares the two and a restoration company whose figures disagree by even 5% is among the fastest files selected for a construction audit.
- We correct insurance-claim revenue a prior preparer booked when the deposit landed rather than as the claim was approved and completed, filing an amended T2 so your restoration corporation is not taxed at 12.2% on money still tied up in an open file.
- We restate work-in-progress and the 10% Construction Act holdback on reconstruction jobs a previous bookkeeper recognized too early, matching revenue to cost so a season’s profit is not double-counted and CRA is not taxing the same $80,000 twice.
- We reclassify emergency-mitigation advances expensed or booked as income into deferred revenue released as the work is performed, because a $20,000 deposit taxed in the wrong year triggers a CRA reassessment inside the four-year window with interest.
- We move a thermal fogger or service vehicle a prior preparer buried in the wrong class into Class 8 at 20% or Class 10 at 30%, restoring the capital cost allowance and undepreciated pool your restoration corporation can claim every year going forward.
- We catch up the unfiled T5018 slips and clean up the shareholder loan on Schedule 50, because a balance the owner owes past two year-ends is added to personal income by CRA under subsection 15(2) at rates reaching 53.53%, a costly surprise we prevent.
- When CRA opens a construction audit, our audit help for restoration companies manages the file and answers the claim-revenue, WIP and holdback queries inside the 30-day deadlines, so a one-year review does not become a reassessment of three prior years and a $50,000 bill.
- Where CRA challenges how you recognized insurance-claim revenue, we produce the Xactimate estimates, adjuster approvals and completion records proving the unearned portion was a year-end liability, defending your timing before CRA reassesses a $120,000 open claim as current income.
- Where CRA proposes penalties for late T5018 contract payments on your restoration subcontractors, we assemble the payment records and argue the $100-per-slip assessment down or away, saving a company that subs out several trades thousands of dollars.
- When CRA runs indirect verification of income on your HST-charged insured work, comparing bank deposits to reported claim revenue, we prepare the source-and-application-of-funds reconciliation and answer within the 30-day deadline before CRA assesses the unreported gap and adds the 50% gross-negligence penalty.
- We file the Notice of Objection within 90 days of a CRA reassessment and pursue relief on Form RC4288 where a prior accountant’s error caused the penalties, protecting your right to the Tax Court and cancelling 100% of the interest wrongly charged.
- We prepare the CSRS 4200 compilation report, the financial statements an insurer vendor program and a bank require across two fiscal years and tie to your T2, before they approve you or release financing on a new $150,000 drying-equipment fleet.
- We build the working-capital and equity picture a surety underwrites, presenting insurance-claim revenue, holdback receivable and unbilled reconstruction WIP correctly on the balance sheet, so your bonding statements win reconstruction contracts worth over $1M.
- Lenders financing a service truck or a $60,000 truck-mounted extraction unit want two fiscal years of compiled statements showing stable margins, so our accounting firm for restoration companies presents your equipment, debt and claim revenue with the T2 a bank credit desk expects.
- For prequalification with insurers, adjusters and property managers, we produce reviewed or audited statements where a compilation is not enough, tying them to your T2 so your restoration company qualifies for insurer programs and reconstruction contracts worth over $1M.
- The CSRS 4200 report discloses that no audit or review was performed and sets the basis of accounting, tied to your T2 and delivered within 30 days so conditional bonding approval and a $250,000 equipment-financing offer are not lost to an expired deadline.
- We handle how to register a restoration company under the Ontario Business Corporations Act, answering whether to incorporate by dropping CRA tax on retained claim profit to the 12.2% small-business rate and shielding you from a sole proprietorship’s unlimited liability.
- We complete the section 85 rollover on Form T2057, transferring your restoration equipment, service vehicles, materials inventory and goodwill into the new corporation at elected amounts, deferring the capital gain, its 50% inclusion and the recapture a straight sale would trigger.
- We structure the corporation to sit cleanly on insurer vendor programs, opening the CRA Business Number, registering the 13% HST account once revenue passes $30,000, and opening payroll and WSIB so your first PD7A remittance is correct.
- We complete your WSIB registration within the 10-day deadline before your first technician starts and set up on-call and emergency-callout payroll, sparing an unregistered restoration company retroactive premiums and a penalty of up to 100% of the unpaid amount immediate registration avoids.
- We set the opening balance sheet, minute book, share classes and first fiscal year-end up to 53 weeks out, so dividends can later be split, your restoration corporation is ready for a $1.25M-exemption sale, and the first T2 and CRA balance-due date are deferred.
Restoration Company Tax & Claim Check
Six quick questions on your insurance-claim revenue, mitigation and reconstruction WIP, holdbacks, T5018 slips and equipment CCA. No fee shown.
1. Are you recognizing your insurance-claim revenue as the claim is approved and completed?
2. Are you carrying your mitigation and reconstruction jobs as work-in-progress?
3. Are you holding back the Construction Act 10% on your reconstruction work?
4. Are you filing T5018 slips for your subcontractors?
5. Are your air movers and dehumidifiers in the right CCA class?
6. Are you deferring your emergency-mitigation advances until the work is performed?
Free CPA Consultation for Restoration Companies
Case Studies: Restoration Company Accounting & Tax
Toronto Water-Damage Restoration — Insurance-Claim Revenue & WIP Corrected
The problem: A Toronto water damage and flood restoration company booked every insurance claim as income the day the adjuster issued the first advance, so a year that opened with a burst-pipe surge showed a huge paper profit and a matching tax bill on claims that were still being mitigated and rebuilt. Its previous bookkeeper carried no work-in-progress, no deferred mitigation advances, and no reconciliation to the Xactimate estimates, so every month was distorted and the December year-end was badly overstated.
What we did: We rebuilt the file in QuickBooks Online, reconciled the Xactimate estimates to the general ledger, recognized claim revenue only as each claim was approved and completed, carried the open mitigation and reconstruction jobs as percentage-of-completion WIP, and reclassified the emergency-mitigation advances to deferred revenue until the drying was performed.
The result:
- Roughly $240,000 of unearned claim revenue moved to WIP and deferred revenue
- Corporate tax deferred to the years the work is actually completed
- Monthly statements finally showed true, level margins
Ottawa Fire & Smoke Restoration — Xactimate Reconciliation, T5018 & Equipment CCA
The problem: An Ottawa fire and smoke restoration company had Xactimate estimates that never tied to its books, three years of unfiled T5018 slips for the trades it subcontracted on reconstruction, and a fleet of air movers, dehumidifiers, air scrubbers and service trucks all expensed or dumped in one wrong CCA class, so it was overpaying tax and exposed to the $100-per-slip penalty.
What we did: We reconciled the Xactimate and Xactanalysis estimates to the general ledger, rebuilt Schedule 8 by moving the air movers, dehumidifiers and air scrubbers to Class 8 at 20% and the service trucks to Class 10 at 30%, and filed all outstanding T5018 returns before the penalties compounded.
The result:
- Saved $29,600 a year in tax after correcting the equipment CCA
- Recovered $16,400 of previously unclaimed capital cost allowance
- All T5018 penalties cancelled under Form RC4288
Hamilton Mould Remediation & Reconstruction — Holdback, Deferred Advances & Incorporation
The problem: A Hamilton mould remediation and reconstruction contractor operating as a sole proprietor recognized each reconstruction job in full as it invoiced, ignored the 10% Construction Act holdback the general contractor retained, booked emergency-mitigation deposits as day-one income, and carried all its profit at top personal rates with no corporate shield on abatement job-site risk.
What we did: We restated the books to carry work-in-progress on percentage-of-completion, moved the 10% holdback to a receivable not recognized until the lien period expired, reclassified the mitigation advances to deferred revenue, and incorporated the business with a section 85 rollover of the equipment, materials inventory and goodwill.
The result:
- Holdback receivable and deferred advances taken off current-year income
- Incorporated with a clean section 85 rollover and no gain triggered
- Profit smoothed so the Small Business Deduction was preserved
Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.
Kickoff (Document Request)
Collect prior T2 returns, open claims and WIP, Xactimate estimates, holdback receivables, deferred mitigation advances, materials and contents inventory, payroll records, subcontractor payments, the equipment list, and bank statements.
First 30 Days (Cleanup & Setup)
Set up QuickBooks Online or Sage 50, reconcile Xactimate, DASH and Encircle, build claim-revenue and WIP schedules, classify CCA, and configure payroll and T5018 tracking.
Monthly Close
Monthly reconciliations, receipt capture, claim-revenue and WIP tracking, HST, and subcontractor payment logging.
Quarterly Planning Review
Salary and dividend mix, HST, WIP and holdback review, equipment purchase timing, and catastrophe cash-flow planning.
Year-End Close & T2 Filing
Trial balance, financial statements with claim revenue, WIP and holdback, T2 with GIFI, T5018 filing, and CRA preparation.
Get Your Restoration Company Taxes Done Right Today
Affordable Pricing for Restoration 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 Restoration Accountant
Meet your lead restoration accountant. As your restoration company and corporate tax adviser, you deal with the same two people every year.
What Our Clients Say
1300+ five-star reviews from restoration companies and small-business owners across Ontario and Canada.
Serving Restoration Companies Across Ontario
Our CPA team provides specialized accounting and tax solutions for water damage, fire and smoke, mould remediation and reconstruction companies throughout Ontario. We understand how an insurance-funded restoration business actually operates, what CRA looks at on claim revenue, WIP and holdbacks, and how to keep your file clean for insurers and adjusters.
Toronto (ON)
55 Queen St E Ste 1205, Toronto, ON M5C 1R6, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Mississauga (ON)
5373 Bullrush Dr, Mississauga, ON, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Brampton (ON)
4 Starhill Crescent, Brampton, ON L6R 2P9, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Scarborough (ON)
24 Clementine Square, Scarborough, ON M1G 2V7, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
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
9:00 AM – 8:30 PM (Mon – Sun)
Ottawa (ON)
2090 Neepawa Ave a314, Ottawa, ON K2A 3L6, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Etobicoke (ON)
60 Stevenson Rd #1601, Etobicoke, ON M9V 2B4, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
Hamilton (ON)
70 Starling Dr, Hamilton, ON L9A 0C5, Canada
+1 (647) 212-9559
9:00 AM – 8:30 PM (Mon – Sun)
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)
Restoration Company Accounting & Tax FAQs
Related Industries We Serve
Accountant for Waterproofing Contractors
- Equipment and vehicle CCA planning
- WIP, holdback and T5018 compliance
- Job costing and corporate tax filing
Accountant for Excavation Companies
- Heavy equipment and fleet CCA planning
- WIP, holdback and T5018 compliance
- Job costing and corporate tax filing
Accounting for Small Businesses
- Corporate tax planning for small businesses
- Business tax filing and financial statements
- Payroll and bookkeeping services
Accountant for Incorporated Businesses
- T2 corporate tax filing and planning
- Salary versus dividend optimization
- Financial statements and bookkeeping
Restoration Company Accounting & Tax Done Right.
T2 filing, insurance-claim revenue recognition, mitigation and reconstruction WIP, the 10% Construction Act holdback, deferred mitigation advances, materials inventory, Class 8/10/12/50 CCA, T5018 slips, HST, WSIB, technician payroll and the apprenticeship credit under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.