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Gondaliya CPA

Corporate Tax Filing Experts

Tax Accountant for Millwork Companies in Ontario and Across Canada

We put your CNC machines, panel saws and edgebanders in accelerated Class 53 at 50% because your shop is manufacturing and processing, recognize your custom-order deposits as deferred revenue on delivery and install rather than when the order is signed, value your lumber, sheet goods, hardware and laminate plus your work-in-progress as inventory under section 10, carry the Construction Act 10% holdback on your commercial casework as a receivable until it is released, file your T5018 subcontractor slips, and plan the tax on your company. Whether you run an architectural millwork shop, a custom cabinetry maker, a store-fixture manufacturer or a commercial casework contractor, we handle the deposit, WIP and materials-inventory accounting, the HST on fabrication and install with full input tax credits, the shop payroll with WSIB and the cabinetmaker apprenticeship credit, and plan the salary, dividends and eventual sale of your company — with AFFORDABLE flat fees.

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AFFORDABLE Millwork Company Tax Accountant

A millwork company is a manufacturing shop that also installs, and the accounting turns on machinery, deposits, WIP and timing. Because you fabricate to order, your CNC routers, panel saws and edgebanders are manufacturing and processing equipment that qualifies for accelerated Class 53 capital cost allowance at 50%, and the M&P profits deduction can matter once income runs past the small-business limit. Your custom work is sold on deposits — deferred revenue you recognize on delivery and install — your lumber, sheet goods, hardware and laminate plus the work-in-progress on open projects are inventory under section 10 of the Income Tax Act, and your commercial casework carries the Construction Act 10% holdback and percentage-of-completion. That is why you need a specialist who knows the trade. At Gondaliya CPA, we specialize in manufacturing CCA, deposit, WIP and holdback bookkeeping and corporate tax planning for millwork companies, providing AFFORDABLE flat-fee support that keeps you CRA-compliant and stops you paying more tax than you owe.

As an architectural millwork and casework accountant, we work with custom cabinetry shops, store-fixture manufacturers, finish-carpentry shops and commercial casework 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 profit sits on each fabrication and install.

Let us handle the numbers so you can focus on the work that actually pays you.

Gondaliya CPA team - accounting and tax services for millwork companies

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Accounting That Understands How a Millwork Company Actually Works

Running a millwork company comes with financial pressures a desk-bound business never faces. You run six-figure CNC machines and panel saws that qualify as manufacturing equipment, you take deposits before a custom job is built, you carry lumber, sheet goods and work-in-progress as inventory, your commercial casework holds back 10% until it is certified, and you run a shop crew that has to be costed and classed. At Gondaliya CPA, we understand the financial reality of a millwork company and provide practical, trade-focused solutions across the GTA and all of Ontario.

Manufacturing CCA & M&P

Your CNC routers, saws and edgebanders are Class 53 manufacturing equipment at 50%, and the M&P profits deduction can apply above the small-business limit.

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Deposits, WIP & Deferred Revenue

Custom-order deposits are deferred revenue recognized on delivery and install, and work-in-progress on open projects is tracked by percentage-of-completion.

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Holdback & T5018

Commercial casework carries the Construction Act 10% holdback, and you file T5018 slips on the subcontractors you pay.

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Materials, Shop & HST

Lumber and sheet goods are section 10 inventory, your shop equipment and leaseholds depreciate by CCA class, and fabrication and install are HST-taxable.

Stay Compliant and Minimize Your Millwork Company Tax

For a millwork company, 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 machinery, materials and shop dollar the T2 allows, so nothing is missed and nothing invites a reassessment.

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HST, WSIB & the Construction Act

Both your custom fabrication and your on-site install are taxable at 13% HST, so there is no exempt line to hide behind, and WSIB registration and premiums in the construction rate group are mandatory on your shop and install wages from the first day you hire. On commercial casework, Ontario’s Construction Act requires a 10% holdback that is not collectible until the job is certified and released, so it is a receivable rather than revenue. Getting HST, WSIB and holdback documentation right protects the company from reassessment and from disputes over progress billings.

CRA Obligations for Millwork Companies

Staying compliant with CRA means more than one return a year. We manage HST on fabrication and install, lumber, sheet-goods and WIP inventory under section 10, custom-deposit deferred revenue, T5018 subcontractor slips, payroll source deductions on the PD7A remittance, and the Apprenticeship Job Creation Tax Credit on Schedule 31 for your cabinetmaker apprentices. By monitoring the areas CRA reviews most often on manufacturing and construction files, we reduce your audit exposure and keep your corporation financially sound.

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Year-End Deliverables for Millwork Companies

At year-end, a millwork corporation needs a proper trial balance and financial statements that carry materials and work-in-progress inventory, the custom-deposit liability, the Construction Act holdback receivable, your Class 53 machinery and shop leaseholds, plus a T2 with GIFI that ties to your HST returns. Where a lender is involved, you also need CPA-compiled financial statements for equipment financing. Our team prepares every deliverable on time and in compliance, so your file is audit-ready and financing-ready.

Accounting & Tax Experts for Millwork Companies

Gondaliya CPA millwork company accounting expertsGondaliya CPA millwork company tax experts
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Why Choose Our Accounting Services for Millwork Companies?

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Tax Planning — Manufacturing & Equipment Expertise

We know the trade: CNC machines, saws and edgebanders in Class 53 M&P at 50%, shop equipment in Class 8 at 20%, delivery and install trucks in Class 10 at 30%. We claim the M&P deduction and cabinetmaker apprenticeship credit on Schedule 31 and protect the $500,000 Small Business Deduction.

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Consulting — Deposit, WIP & Holdback Bookkeeping

Our bookkeeping recognizes custom-order deposits as deferred revenue on delivery and install, values your lumber, sheet-goods and work-in-progress inventory under section 10, and carries the Construction Act holdback as a receivable. We job-cost each project so you see the real margin and tie HST to revenue.

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CRA Representation — Inventory & WIP Audit

When CRA reviews your materials and WIP inventory, your deferred deposits, or your HST on fabrication and install, we prepare the response, reconcile WSIB, and pursue relief on Form RC4288 where penalties came from a prior error.

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Bookkeeping — Payroll, Credit & Sale

We run your shop and apprentice payroll with WSIB, capture the apprenticeship credit, and get you ready to sell. We model the profit level where incorporating pays off and handle the eventual disposition of your company.

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Millwork Company Tax and Accounting Services in Ontario

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Corporate Tax Filing (T2) for Millwork Companies

Professional T2 preparation with Schedule 8 CCA on your Class 53 machinery and shop equipment, materials and WIP inventory and custom deposits, and CRA compliance on every line.

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Bookkeeping & Accounting for Millwork Companies

Deposit, WIP, materials-inventory and holdback bookkeeping with financial statements, clean records, and monthly reporting built for a millwork company.

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Payroll Services for Millwork Companies

Shop and install-crew payroll with WSIB in the construction rate group, PD7A remittances, T4s, T5018 slips, and cabinetmaker apprentice-wage tracking for the credit.

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GST/HST Filing for Millwork Companies

AFFORDABLE HST filing on fabrication and install with full input tax credits on lumber, sheet goods, machinery and hardware, matched to your T2 to avoid CRA penalties.

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Tax Planning for Millwork Companies

Smart tax planning to protect the Small Business Deduction, claim the M&P and apprenticeship credits, time machinery purchases, and plan salary, dividends and sale.

Corporate Catch-Up Filing for Millwork Companies

File overdue T2 and HST years, rebuild missing fabrication, materials, WIP and deposit records, and get back into CRA compliance with accurate catch-up support.

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CRA Audit Resolution for Millwork Companies

Expert support for materials-inventory, WIP, deposit and HST audits, with cost-of-goods and percentage-of-completion reviews handled with confidence.

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CPA Financial Statements (Notice to Reader) for Millwork Companies

CPA-compiled financial statements that equipment lenders and banks accept for your millwork corporation.

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Incorporation Services for Millwork Companies

Full incorporation including NUANS, articles, share structure, and the section 85 rollover from your unincorporated millwork business.

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Catch-Up Bookkeeping Services for Millwork Companies

Catch up overdue shop bookkeeping, separate custom-order deposits from earned revenue, rebuild materials and work-in-progress inventory, and get accurate, CRA-ready financials for your millwork company’s T2.

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US Corporation & LLC Tax Filing for Millwork Companies

US corporation and LLC tax filing for millwork shops working across the border — Forms 1120, 1120-F and 5472, coordinated with your Canadian T2 for full IRS compliance.

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Voluntary Disclosure Program for Millwork Companies

Correct unreported install income, missed T5018 slips or HST through the CRA Voluntary Disclosures Program, reducing penalties and restoring your millwork company’s compliance.

Accounting & Tax Services Tailored for Millwork Companies

Real, practitioner-level CPA expertise for architectural millwork shops, custom cabinetry makers, store-fixture manufacturers and commercial casework contractors across Ontario — built for how a millwork company actually runs.

  • We prepare your T2 with GIFI on Schedule 100 and Schedule 125, separating custom fabrication revenue from install revenue in QuickBooks Online, so CRA’s automated matching never flags your shop; on one company correct line coding reversed a $16,000 assessment.
  • We claim capital cost allowance on Schedule 8, placing your CNC router, panel saw and edgebander in Class 53 manufacturing equipment at 50%; on one $180,000 machinery pool that accelerated roughly $45,000 of first-year CCA against a profitable year.
  • We pool shop equipment such as dust collectors and clamp racks in Class 8 at 20% and your delivery and install trucks in Class 10 at 30% on Schedule 8, so a $38,000 spray booth is written down correctly instead of expensed and clawed back.
  • We handle custom-order deposits under paragraph 12(1)(a) and the paragraph 20(1)(m) reserve for undelivered goods, recognizing income only on delivery and install in QuickBooks; on one shop we deferred $60,000 of deposits off the current year’s tax.
  • We value your lumber, sheet goods, hardware and laminate as inventory under section 10 of the Income Tax Act at the lower of cost or net realizable value in QuickBooks; on one shop we wrote down $11,400 of warped and discontinued stock.
  • We sync your Cabinet Vision or Microvellum shop data to QuickBooks Online so every project posts labour, materials and the deposit to the right account, giving the six years of records section 230 requires; on one shop this surfaced $18,000 of unbilled extras.
  • We track your lumber, sheet-goods and hardware inventory in Xero and reconcile it to a physical count at year-end, so cost of materials on your T2 reflects only what you consumed; one count corrected a $22,000 overstatement of stock.
  • We hold custom deposits in a QuickBooks deferred-revenue liability and release them on delivery and install, because folding deposits into sales overstates the HST you appear to owe under the Excise Tax Act; on one shop this corrected $34,000 of premature income.
  • We capture every supplier invoice through Dext, so the 13% input tax credit on plywood, MDF, melamine and hardware, claimed on line 108 of your HST return, is never lost to a missing packing slip; one cleanup recovered $7,900 of ITCs.
  • We separate custom fabrication revenue from install revenue against the Schedule 125 lines in QuickBooks, so you see which stream carries the margin; on one company this revealed $27,000 of casework quoted below shop cost in a single quarter.
  • We set up shop and install-crew payroll in Wagepoint, withholding income tax, CPP and EI and remitting on the PD7A by the 15th, so a busy shop never eats CRA’s 10% late-remittance penalty, which on a $9,000 remittance would cost $900.
  • We register your WSIB coverage in the construction rate group, mandatory for a millwork shop that installs, and file premiums in Wagepoint reconciled to your T4 Summary; one registration avoided a $12,000 back-assessment going back two years.
  • We prepare and file T5018 Contract Payment Reporting slips from your QuickBooks records for the install and finishing subcontractors you pay, avoiding the $100-per-slip penalty CRA applies to late filings; on one shop with 40 subcontractors that exposure reached $4,000.
  • We track cabinetmaker apprentice wages in Wagepoint so your registered apprentices qualify for the Apprenticeship Job Creation Tax Credit on Schedule 31, worth 10% of eligible wages up to $2,000 each; on one three-apprentice shop we captured $6,000.
  • We manage Ontario Employer Health Tax once annual payroll passes the $1,000,000 exemption, file the T4 and T4 Summary by the last day of February, and reconcile them to the PD7A in Wagepoint; on one shop this caught $3,200 of EHT.
  • Both your custom fabrication and on-site install are taxable at 13% HST under the Excise Tax Act, so we set the right code in QuickBooks because there is no exempt line; one review found $8,300 of tax undercharged and reassessed.
  • You must register once taxable revenue passes the $30,000 small-supplier threshold across four quarters, and we track in QuickBooks the exact quarter you cross under the Excise Tax Act, so CRA cannot assess back-tax where you never charged HST; one file saved $6,400.
  • We claim the input tax credits your lumber, sheet goods, hardware and machinery carry, recovering the 13% HST on line 108 of your return; on one company we recovered $9,750 of ITCs on a new $75,000 Class 53 CNC router.
  • We handle the HST timing on custom-order deposits so the tax is reported under the Excise Tax Act rules and reconciled in QuickBooks against the delivery and install date; on one shop this fixed a $5,600 remittance mismatch.
  • We reconcile the HST on your returns to the revenue on your T2 in QuickBooks every filing period, because CRA’s matching program compares the two and a shop whose figures disagree is pulled fast for a costly audit; one reconciliation pre-empted a $14,000 reassessment.
  • We set the salary-versus-dividend mix for the owners, paying enough T4 salary to build RRSP room while the balance flows as dividends, so combined tax stays near the 12.2% Ontario small-business rate under section 125; on one owner this deferred $21,000 in year one.
  • We keep active income under the $500,000 Small Business Deduction limit using section 125 and claim the manufacturing and processing profits deduction on Schedule 27 where fabrication income runs past it; on one shop the M&P deduction saved $19,000 of federal tax.
  • We claim the cabinetmaker Apprenticeship Job Creation Tax Credit on Schedule 31 for your registered apprentices, worth 10% of eligible wages up to $2,000 each and tracked in Wagepoint, so training your shop reduces tax; two apprentices returned $4,000.
  • We time your CNC, saw and edgebander purchases before fiscal year-end so the half-year rule and the 50% Class 53 declining rate on Schedule 8 give the largest first-year deduction; on one $120,000 machinery buy this pulled forward $30,000 of CCA.
  • We plan at least two years ahead so your shares qualify for the $1.25M Lifetime Capital Gains Exemption under section 110.6 claimed on Form T657, purifying the company of non-active assets so selling your millwork business defers tax; one purification protected $250,000 of gain.
  • We reconstruct fabrication and install revenue and job costs from bank deposits, merchant statements and your Cabinet Vision records where no bookkeeping exists across your unfiled T2 years, so CRA cannot arbitrarily assess your shop; one rebuild cut a $40,000 estimate.
  • Late filing costs 5% of the balance owing plus 1% per month up to twelve months under subsection 162(1), so we file your oldest unfiled T2 first to stop the penalty compounding; on one shop this limited penalties to $6,800.
  • We file the missing HST returns and reconcile in QuickBooks the 13% you charged on fabrication and install against what you remitted under the Excise Tax Act, so CRA cannot assess back tax with interest; one catch-up cleared a $12,500 shortfall.
  • We rebuild the undepreciated capital cost pools across the unfiled years so missed CCA on Class 53 machinery, Class 8 shop equipment and Class 10 trucks is recovered on Schedule 8; on one file this restored $16,200 of depreciation.
  • We file a Voluntary Disclosures Program application on Form RC199 under subsection 220(3.1) before CRA contacts you, because a disclosure accepted under the general program cancels penalties in full and gives 50% interest relief; on one shop this waived roughly $9,400 of penalties.
  • When CRA opens an audit, we manage the file and answer the deposit, section 10 inventory and WIP queries inside the deadlines from QuickBooks, so a one-year review does not expand into three; on one file this contained $28,000 of exposure.
  • When CRA questions your work-in-progress inventory under section 10, we prove percentage-of-completion with your shop drawings, cut lists and Cabinet Vision job costs, because a WIP figure disallowed for missing support cannot be restored later; one project defended $30,000 of deferred profit.
  • We defend your deferred-revenue position when CRA challenges the timing under paragraph 12(1)(a), showing a custom deposit is not revenue until delivery and install, tracked in QuickBooks; on one company we deferred $19,000 of deposits, reversing an early assessment.
  • We answer materials-inventory and cost-of-goods reviews with the section 10 lower-of-cost-or-NRV valuation, physical counts and Dext supplier invoices, because a deduction disallowed for missing records is lost; on one review this protected $23,000 of claimed material cost.
  • We file the Notice of Objection on Form T400A within 90 days of a reassessment under subsection 165(1) and pursue taxpayer relief on Form RC4288 where a prior accountant’s error caused penalties; on one shop this cancelled $7,600 of penalties.
  • We prepare the CSRS 4200 compilation engagement financial statements, the Notice to Reader an equipment lender requires across two fiscal years, tied to the T2, before approving the $150,000 financing on a new Class 53 CNC and finishing line your shop needs.
  • Your compiled statement of financial position presents materials and work-in-progress inventory under section 10, the custom-deposit liability and the Construction Act holdback receivable at net book value, giving a lender what a bare T2 cannot; on one file this unlocked $120,000 of financing.
  • We build the statement of operations with fabrication revenue, install revenue and cost of materials classified consistently in QuickBooks across two years and tied to the T2, so a lender approves the operating line; on one shop this supported a $60,000 credit facility.
  • The CSRS 4200 communication discloses that no audit or review was performed, and without it the Business Development Bank of Canada rejects the operating credit your shop needs to carry its section 10 lumber and sheet-goods float; one NTR unlocked $80,000.
  • We deliver the compiled statements within 30 days of receiving your records and the year’s T2 figures, because a shop’s financing approval collapses when the conditional offer expires; on one deal timely delivery saved a $110,000 Class 53 machinery lease.
  • We incorporate your business under the Ontario Business Corporations Act, giving you limited liability, a defined share structure and the 12.2% small-business rate on the first $500,000 under section 125, filed on your first T2; on one owner this saved about $18,000 a year.
  • We complete the section 85 rollover on Form T2057, transferring your CNC machinery, shop equipment, inventory and goodwill into the corporation at elected amounts, deferring the capital gain and recapture a straight sale would trigger; on one shop this deferred $52,000 of tax.
  • We register your WSIB coverage in the construction rate group before the first installer starts and track it in Wagepoint so premiums reconcile to the T4 Summary, because an unregistered owner faces two years of retroactive premiums; one setup avoided an $11,000 assessment.
  • We open the corporation’s CRA Business Number, HST and payroll accounts within the first 30 days, set the PD7A remittance schedule in QuickBooks Online, and close the old accounts so your shop never remits the same revenue twice; one setup prevented a $4,500 double-remittance.
  • We structure the share classes and set the first fiscal year-end up to 53 weeks after incorporation, so dividends split among family shareholders and the first T2 balance-due date is deferred; one shop freed $15,000 for a new Class 53 saw.
  • We rebuild months of missing shop books, reconstructing the general ledger from bank, supplier and deposit records, and separating custom-order deposits from earned revenue so your millwork financials are accurate and ready for the T2.
  • We recover missed input tax credits on lumber, sheet goods, hardware and machinery invoices buried in the backlog, then hand you clean year-end numbers your corporate return and Notice to Reader statements can be built on.
  • We rebuild your materials and work-in-progress inventory under ITA section 10 for multi-week projects, so partially finished casework is valued correctly and the profit reported on each job is no longer over- or understated.
  • We file overdue HST returns and reconcile any Construction Act holdback receivables and T5018 subcontractor slips uncovered during the cleanup, so penalties and interest stop compounding on both your fabrication and install income.
  • We set up cloud bookkeeping with a simple monthly routine for deposits, progress billings and shop payroll, then deliver a reconciled trial balance with prior-year comparatives your bank or lender can rely on immediately.
  • We prepare US federal and state returns for millwork shops selling casework or store fixtures across the border, including Forms 1120 and 1120-S, and coordinate them with your Canadian T2 so the same fabrication income is never taxed twice.
  • We handle the cross-border compliance pieces for your shop, filing Form 1120-F for US-source install revenue and Form 5472 where a US affiliate exists, so every IRS obligation on your millwork contracts is met accurately and on time.
  • We map your US filing footprint, testing whether installing or delivering millwork into a state creates nexus or effectively connected income, so you register and file only where your projects actually require it.
  • We claim foreign tax credits and apply treaty positions so US tax paid on cross-border casework offsets your Canadian liability, keeping the manufacturing profit on your shop’s work from being eroded by double taxation.
  • We track filing deadlines and estimated-payment dates on both sides of the border for the corporation, so your shop avoids late-filing and failure-to-file penalties in either country while jobs are still in progress.
  • We assess whether your shop qualifies for the CRA Voluntary Disclosures Program and prepare a complete Form RC199 submission for unreported install income, missed T5018 slips or HST never charged on fabrication and delivery.
  • We work to reduce or eliminate gross-negligence penalties and limit interest by coming forward properly before CRA contacts your millwork business about deposits booked as income or under-reported progress billings.
  • We correct prior years where custom-order deposits, Construction Act holdbacks or materials inventory were mis-stated, refiling the affected T2 returns so your shop’s books meet the program’s validity conditions.
  • We calculate your tax, interest and penalty exposure on the unreported amounts up front, so you enter the disclosure knowing the numbers and the likely outcome before anything about your shop is filed with CRA.
  • We manage the full disclosure and any follow-up correspondence, structuring the submission to be voluntary, complete and penalty-attracting so past millwork errors are fixed and your company is restored to full compliance.

Millwork Tax & WIP Check

Six quick questions on your Class 53 machinery, custom-order deposits, work-in-progress, materials inventory, the Construction Act holdback and whether it is time to incorporate. No fee shown.

1. Is your CNC, saw and edgebander machinery in accelerated Class 53 at 50%?

2. Are you recognizing custom-order deposits as deferred revenue on delivery and install?

3. Are you tracking work-in-progress by percentage-of-completion on open projects?

4. Are you valuing your lumber, sheet goods and hardware as inventory at year-end?

5. Are you carrying the Construction Act 10% holdback as a receivable on install jobs?

6. Is your millwork company incorporated?

Free CPA Consultation for Millwork Companies

Case Studies: Millwork Company Accounting & Tax

Toronto Architectural Millwork Shop — Class 53 Machinery & Deposits

The problem: A Toronto architectural millwork shop was depreciating its CNC router and panel saws as ordinary Class 8 equipment and booking every custom-order deposit as income the day the order was signed, so profit was overstated on jobs still in the shop and the machinery gave up thousands in accelerated depreciation each year. No work-in-progress was tracked on multi-week casework, and the T2 could not separate fabrication from install revenue.

What we did: We reclassified the CNC and saws to Class 53 manufacturing equipment for accelerated 50% CCA, moved custom deposits into a deferred-revenue liability recognized on delivery and install, and set percentage-of-completion so work-in-progress landed in the right period.

The result:

  • Accelerated roughly $46,000 of first-year Class 53 CCA
  • Deferred $55,000 of custom deposits to delivery and install
  • Fabrication, install and WIP correctly stated on the T2

Mississauga Custom Cabinetry Shop — Incorporation, WIP & Apprentices

The problem: A Mississauga custom cabinetry shop was running unincorporated, so strong fabrication and install margins landed on the owner’s personal return at Ontario’s top 53.53% rate with no way to defer the surplus. Materials were expensed as bought, no work-in-progress was tracked on multi-week jobs, and two registered cabinetmaker apprentices had never generated an apprenticeship credit, leaving money on the table every year the shop trained them.

What we did: We incorporated the shop and moved the machinery, tools, inventory and goodwill across on a section 85 rollover, applied the $500,000 Small Business Deduction so active income is taxed near 12.2%, set section 10 materials and work-in-progress inventory, and filed Schedule 31 for the apprenticeship credit.

The result:

  • Captured $4,000 of cabinetmaker apprenticeship credits
  • Cut the combined tax bill materially at the 12.2% rate
  • Materials and WIP inventory set under section 10

Ottawa Commercial Casework Company — Holdback, WIP & T5018

The problem: An Ottawa commercial casework company doing builder and institutional fit-outs was booking progress billings and the Construction Act 10% holdback as revenue as soon as it invoiced, even though the holdback is not collectible until the job is certified and released. Work-in-progress on multi-week installs open at year-end was untracked, so profit lurched between periods, and the finishing subcontractors it paid had never been reported on T5018.

What we did: We set the 10% holdback up as a receivable recognized only when released, applied percentage-of-completion so work-in-progress is carried correctly in QuickBooks Online, filed the outstanding T5018 slips, and rebuilt the progress-billing receivables so aged balances and any bad debt under paragraph 20(1)(p) were finally visible.

The result:

  • Construction Act holdback carried as a receivable, not early revenue
  • Percentage-of-completion WIP now tracked at year-end
  • T5018 slips filed in QuickBooks, books audit-ready

Our Simple Process

How We Work With Millwork Companies

Know Exact Fees within 2 Minutes NOW

Our clear, efficient process ensures every step is transparent, building trust and long-term client relationships.

Here’s a simplified process approach:
Step 1

Kickoff (Document Request)

Collect prior T2 returns, lumber, sheet-goods and hardware inventory counts, custom-deposit and holdback records, open projects and work-in-progress, machinery and equipment list, payroll and apprentice records, and bank statements.

Step 2

First 30 Days (Cleanup & Setup)

Set up QuickBooks Online or Xero, integrate Cabinet Vision or Microvellum job data, build deposit, WIP, inventory and holdback schedules, classify Class 53 and shop CCA, and configure payroll and WSIB tracking.

Step 3

Monthly Close

Monthly reconciliations, receipt capture, fabrication and install job costing, HST on fabrication and install, and materials and WIP inventory tracking.

Step 4

Quarterly Planning Review

Salary and dividend mix, HST, inventory and work-in-progress review, M&P and apprenticeship credits, and machinery purchase timing.

Step 5

Year-End Close & T2 Filing

Trial balance, financial statements with materials and WIP inventory, custom deposits and holdback, T2 with GIFI, and CRA preparation.

Get Your Millwork Company Taxes Done Right Today

Transparent Pricing for Millwork Companies

Affordable Pricing for Millwork Companies

Know Exact Fees within 2 Minutes NOW

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 Millwork Company Accountant

Meet your lead millwork company accountant. As your trade and corporate tax adviser, you deal with the same two people every year.

Sharad Gondaliya CPA

Sharad Gondaliya, CPA

Principal

Bio

647-212-9559
sharad@gondaliyacpa.ca

Vandana Goel CPA

Vandana Goel, CPA

Accounting Specialist

Bio

647-250-0242
vandana@gondaliyacpa.ca

What Our Clients Say

1300+ five-star reviews from millwork company and skilled-trade business owners across Ontario and Canada.

Serving Millwork Companies Across Ontario

Our CPA team provides specialized accounting and tax solutions for millwork companies throughout Ontario. We understand how manufacturing CCA, custom deposits, work-in-progress and the Construction Act holdback actually flow through a millwork company, what CRA looks at on a manufacturing and construction file, and how to put your machinery and materials inventory in the right place.

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)

Millwork Company Accounting & Tax FAQs

Should I incorporate my millwork company?
Incorporating gives you limited liability and a 12.2% Ontario combined rate on the first $500,000 of active income, versus a personal rate up to 53.53% if you stay unincorporated. It usually pays once you consistently earn more than you withdraw, since that surplus is what a corporation lets you defer. It also opens the $1.25M Lifetime Capital Gains Exemption on a future sale. We model the break-even for your actual numbers and handle the section 85 rollover on Form T2057.
Do millwork companies charge HST on fabrication and install?
Yes. Both your custom fabrication and your on-site install are fully taxable at 13% HST in Ontario; there is no exempt line for this manufacturing and construction work, so you charge HST on the whole invoice. The upside is input tax credits on the 13% you pay for lumber, sheet goods, hardware, machinery and shop supplies. You must register once taxable revenue passes the $30,000 small-supplier threshold, and we reconcile HST to the revenue on your T2 every period.
Does my millwork shop qualify for the manufacturing (Class 53 / M&P) treatment?
Yes. Fabricating cabinets, casework and fixtures to order is manufacturing and processing, so your CNC routers, panel saws and edgebanders qualify for accelerated Class 53 capital cost allowance at 50% on Schedule 8. Where your income runs past the $500,000 small-business limit, the manufacturing and processing profits deduction on Schedule 27 can lower the tax on the excess. We set the correct class on your machinery and claim the deduction properly.
How do I account for custom-order deposits?
When you take a deposit on a signed shop drawing, it is not revenue yet. Under paragraph 12(1)(a) and the paragraph 20(1)(m) reserve for undelivered goods, it is deferred revenue you recognize on delivery and install, not when the order is signed. Booking deposits straight into sales overstates profit and the HST you appear to owe on jobs still in the shop. We set up a deferred-revenue account and release each deposit to income on install.
How do I handle WIP inventory and percentage-of-completion?
On multi-week custom projects, the labour and materials in an unfinished job are work-in-progress, inventory under section 10, and revenue is recognized by percentage-of-completion as the job advances. Ignoring WIP makes profit lurch between periods and can overstate or understate a year, which CRA may reassess. We track WIP from your shop drawings and cut lists so profit lands in the right period and your T2 is accurate.
How do I account for my materials inventory?
Your lumber, sheet goods such as plywood, MDF and melamine, hardware and laminate on hand at year-end are inventory under section 10 of the Income Tax Act, valued at the lower of cost or net realizable value. Expensing everything as you buy it overstates cost of materials and understates profit, which CRA can reverse on a reassessment. We count and value the stock and write down obsolete or damaged material where the rules allow.
How does the Construction Act holdback work on my commercial jobs?
On commercial casework and builder jobs in Ontario, the Construction Act requires 10% of each progress billing to be held back until the job is certified and the holdback period expires. That 10% is a receivable, not revenue, recognized only when it is released. Booking the full progress billing as revenue before the holdback is released overstates income and the tax on it. We carry the holdback correctly and apply percentage-of-completion so profit lands in the right period.
Do I have to file T5018 slips for my subcontractors?
Yes. If your company’s primary activity is construction and you pay subcontractors on installs and finishing, you must file a T5018 Contract Payment Reporting slip and summary for each one, reporting the amounts you paid during your period. Millwork install falls under construction, so those subcontractors are reportable. CRA’s penalty starts at $100 per slip for late or missing filings and rises with the number of slips. We prepare and file your T5018 returns on time.
How do I depreciate my shop machinery?
Your CNC routers, panel saws and edgebanders are Class 53 manufacturing equipment at 50%, your dust collectors, clamps and other shop equipment are Class 8 at 20%, your delivery and install trucks are Class 10 at 30%, and shop leaseholds are Class 13, all claimed on Schedule 8. Placing machinery in Class 53 rather than Class 8 more than doubles the first-year write-off. We class each asset correctly so you are not under-claiming.
Can I claim the cabinetmaker apprenticeship credit?
Yes. If you employ registered cabinetmaker apprentices, the wages you pay in the first two years of their program earn the Apprenticeship Job Creation Tax Credit, worth 10% of eligible wages up to $2,000 per apprentice per year, claimed on Schedule 31 of your T2. It is a non-refundable credit that reduces your corporation’s tax. If you have not been claiming it, we can file for open prior years too.
How much corporate tax does a millwork company pay in Ontario?
An incorporated millwork company pays roughly 12.2% combined federal-provincial tax on the first $500,000 of active income under the Small Business Deduction, with income above that taxed at the general corporate rate and reduced further by the manufacturing and processing profits deduction. On top you charge 13% HST on fabrication and install, remit payroll source deductions on the PD7A, and pay WSIB in the construction rate group. Unincorporated, the same profit is taxed up to 53.53%.
What can my millwork company write off?
Your Class 53 machinery, Class 8 shop equipment, Class 10 trucks and Class 13 leaseholds are all depreciated on Schedule 8. You also deduct lumber, sheet goods and hardware consumed, shop and install wages, WSIB premiums, subcontractor costs, shop rent, design software, finishing supplies, insurance and training, and a bad debt under paragraph 20(1)(p) where a customer never pays. We put each asset in the right class so nothing is under-claimed.
What accounting software works best for a millwork company?
We pair design and estimating software such as Cabinet Vision or Microvellum with QuickBooks Online or Xero for the accounting, and Dext for receipt capture. The design software runs your shop drawings, cut lists and job costs, and we map it to the general ledger so fabrication revenue, install revenue, deposits, work-in-progress and materials post to the right accounts. We set it up and maintain it so your HST, inventory and year-end all tie out.

Related Industries We Serve

Accountant for Cabinet Makers

  • Class 53 machinery, deposits and materials inventory
  • WIP, HST, ITCs and bookkeeping
  • Shop CCA and corporate tax filing

Accountant for Carpenters

  • Progress billing and Construction Act holdback
  • T5018, WSIB and crew payroll
  • Corporate tax planning and HST

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 returns and GIFI
  • Salary, dividend and SBD planning
  • Compilation statements and incorporation

Millwork Company Accounting & Tax Done Right.

T2 filing, HST on fabrication and install, Class 53 machinery CCA and the M&P deduction, custom deposits and work-in-progress, lumber and sheet-goods inventory, the Construction Act holdback and T5018, shop payroll with WSIB and the cabinetmaker apprenticeship credit under one roof. AFFORDABLE flat fees, no hourly billing. Licensed CPA Ontario. 1300+ five-star reviews. 30-Day Money-Back Guarantee.



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