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Catch-Up Bookkeeping · Contractors · Licensed CPA

Catch-Up Bookkeeping for Contractors

Months or years behind on your contractor books? We rebuild your job costs, subcontractor payments, holdbacks, progress billings, WSIB and GST/HST from your invoices and bank records, prepare the T5018s you are behind on, and file your returns, so your books are accurate and your business is ready for the CRA scrutiny construction always draws. Licensed Ontario CPA. Flat fee. All fees include HST.

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T5018s Prepared & Filed
Subcontractor payments captured and reported to the CRA
Subcontractors Classified Correctly
Workers reviewed for employee versus subcontractor status
Back Returns Filed
Outstanding GST/HST, T5018 and T2 returns filed from clean books

Behind on Your Contractor Books? Construction Is on the CRA Watchlist.

A contractor runs on job costs, subcontractor payments, statutory holdbacks, progress billings, WSIB, equipment and GST/HST, all across multiple jobs at once. When you are on site all day, the books are the first thing to slip, and once they are behind, the missed T5018s, the holdback timing and the subcontractor-classification issues compound quietly until a filing deadline or a CRA letter arrives. Construction sits permanently on the CRA high-risk list, so books left behind carry real exposure.

We rebuild the whole picture from your invoices, subcontractor records and bank statements, so your job costs, holdbacks, progress billings and GST/HST are complete and correct, and your subcontractor payments are captured for the T5018. If you are a contractor behind on your books, our construction accounting team can bring you current. See also our construction bookkeeping and T5018 filing requirements.

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Gondaliya CPA team

Our Contractor Catch-Up Bookkeeping Services

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Job Costing Rebuild

We rebuild job costs per project with loaded labour rates, so each job's true profit is clear.

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Subcontractor Tracking

We capture every subcontractor payment cleanly so your T5018s can be prepared and filed.

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Holdback Schedules

We rebuild holdback receivable and payable schedules per project and get the GST/HST timing right.

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GST/HST Reconstruction

We reconcile GST/HST on progress billings and holdbacks, capture input tax credits and file back returns.

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Payroll & WSIB

We reconcile employee payroll, source deductions, T4s and WSIB, and review worker classification.

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Back Returns Filed

Once the books are rebuilt we file the outstanding GST/HST, T5018 and T2 returns from clean numbers.

How We Catch Up Your Contractor Books

Every moving part of a construction business's books rebuilt, job by job and period by period, until you are current. All fees include HST.

1

Scope the Backlog

We start by mapping exactly how far behind you are and which deadlines are live.

  • Confirm how many periods and jobs are behind and what has been filed.
  • Identify the GST/HST, T5018 and T2 corporate returns that are overdue.
  • List the records we have and what needs rebuilding from invoices and bank data.
  • Prioritise the periods with filing deadlines and penalty exposure first.
  • Quote a flat fee for the whole catch-up before we begin.
2

Rebuild Job Costs

The job cost is the foundation, so we rebuild it project by project.

  • Reconstruct direct labour, materials, equipment and subcontractor costs per job.
  • Use loaded labour rates, wage plus CPP, EI, WSIB and benefits, not base wage.
  • Match progress billings to the work actually done on each project.
  • Reconcile job costs to bank and card activity.
  • Rebuild a work-in-progress picture so profit is not swinging month to month.
3

Capture Subcontractors for T5018

Missed T5018s are one of the most common contractor penalties.

  • Identify every subcontractor paid for construction services during each year.
  • Collect the SIN or Business Number needed for each T5018 slip.
  • Report Box 22 as the gross payment including GST/HST, not the net.
  • Route non-construction service contractors to the T4A, not the T5018.
  • Prepare and file the outstanding T5018 slips and summaries.
4

Rebuild Holdbacks

Holdbacks have their own timing rules that trip up most contractor books.

  • Rebuild holdback receivable and payable schedules for every project.
  • Track the statutory holdback withheld from each progress payment.
  • Apply GST/HST to holdbacks when released and paid, not when earned.
  • Flag holdback receivables now eligible for release but not yet collected.
  • Reconcile the balances to the project contracts and billing history.
5

Rebuild GST/HST & Classification

Tax timing and worker status are top construction reassessment triggers.

  • Reconcile GST/HST on progress billings, applied at invoice or payment, whichever first.
  • Capture the input tax credits on materials, equipment and subcontractors.
  • Review each worker for employee versus subcontractor status.
  • Correct prior periods where a worker was misclassified.
  • Prepare and file the back GST/HST returns from the rebuilt numbers.
6

File & Keep You Current

Clean books are only useful once the returns are filed and stay filed.

  • File the outstanding GST/HST, T5018 and T2 corporate returns from reconciled books.
  • Reconcile WSIB and owner draws so nothing looks unexplained.
  • Hand you clean books in QuickBooks Online or Xero to carry forward.
  • Pursue penalty and interest relief where a genuine circumstance applies.
  • Move you to monthly bookkeeping so the books never fall behind again.

Free Contractor Catch-Up Bookkeeping Consultation

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Case Studies

Three Years of T5018s Filed

A contractor three years behind had never filed a T5018, with subcontractor payments scattered across bank records. We rebuilt the subcontractor ledger, collected the missing SINs and Business Numbers, and prepared and filed the outstanding slips and summaries before the penalties compounded further. The figures here are illustrative of the work we do, not a specific client file.

Back T5018s prepared and filed

Holdbacks Reconstructed

A builder had booked holdbacks as revenue when earned and applied GST/HST at the wrong time. We rebuilt the holdback receivable and payable schedules per project, corrected the GST/HST timing to release, and re-reconciled the affected periods. The figures here are illustrative of the work we do, not a specific client file.

Holdback timing corrected

Subcontractor Reclassification Avoided

A trades company paid several long-term workers as subcontractors, though the company controlled their hours and supplied the tools. We reviewed each arrangement, corrected the treatment, and documented it before a CRA reclassification and retroactive CPP, EI and penalties. The figures here are illustrative of the work we do, not a specific client file.

Payroll exposure removed

Job Costs Rebuilt, Real Margins Found

A contractor with no job costing could not tell which projects made money. We rebuilt costs per job with loaded labour rates, produced a work-in-progress schedule, and filed the outstanding returns from clean books. The figures here are illustrative of the work we do, not a specific client file.

Job-level margins restored

Where Contractor Books Go Wrong

These are the issues we find most often when we catch up a contractor, and the ones the CRA looks at first.

ProblemWhy It Matters
Missing T5018 slipsSubcontractor payments never reported, a common construction penalty
Worker misclassificationSubcontractors the CRA reclassifies as employees, with retroactive CPP and EI
Holdback timing wrongGST/HST applied when earned instead of when the holdback is released
No job costingProfit swings month to month with no view of which jobs make money
Base wage used for labourIgnoring CPP, EI, WSIB and benefits understates true cost per job
Owner draws not reconciledDraws that do not tie to a T4 or T5 invite a CRA review

Construction is permanently on the CRA high-risk list. Missed T5018s, holdback timing and worker classification are the issues that draw reassessments, so getting them right is the most important part of catching up a contractor. See our CRA audit support for construction companies.

T5018 and Classification: The Rules We Apply

The areas contractors most often get wrong, and exactly how we treat them as we rebuild your books.

ItemTreatment
Subcontractor paid $500 or moreReportable on a T5018 where the work is a construction service
T5018 Box 22 amountThe gross payment including GST/HST, not the net
Non-construction service contractorReported on a T4A in Box 048, not a T5018
Statutory holdbackEnters Box 22 and GST/HST when released and paid, not when earned
Genuine independent subcontractorPaid on the T5018, with no CPP, EI or source deductions
Worker who is really an employeeReclassified onto payroll to avoid retroactive CPP, EI and penalties

Unremitted source deductions reach the directors personally. Where workers should have been on payroll and were not, the CPP, EI and income tax that ought to have been withheld become the corporation's liability with penalties and interest, and directors can be assessed personally for unremitted source deductions and unremitted GST/HST, exposure that survives dissolving the corporation. Correcting classification and filing on your own initiative is treated very differently from the same facts surfacing in a CRA review, which is the whole argument for starting the catch-up now rather than next season.

What Our Contractor Catch-Up Includes

  • Scoping the backlog and quoting a flat fee before we start
  • Rebuilding job costs per project with loaded labour rates
  • Reconstructing holdback receivable and payable schedules per job
  • Capturing subcontractor payments and preparing the outstanding T5018s
  • Reconciling GST/HST on progress billings and holdbacks and reconstructing the returns
  • Capturing the input tax credits on materials, equipment and subcontractors
  • Reviewing each worker for employee versus subcontractor status
  • Reconciling employee payroll, source deductions, T4s and WSIB
  • Filing the outstanding GST/HST, T5018 and T2 corporate returns from clean books
  • Handing you reconciled books in QuickBooks Online or Xero to carry forward

Know Your Exact Fee Before We Start

Flat fee, fixed in advance. All fees include HST. No hourly billing.

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Why Choose Gondaliya CPA for Contractor Catch-Up?

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Construction Expertise

Job costing, T5018, holdbacks and worker classification handled the way trades actually run.

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Licensed CPA Ontario

A certified CPA team rebuilds and files, not just data entry.

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Flat Fee, Upfront

All fees including HST, no hourly billing, scoped before we start.

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Fully Remote

Your books rebuilt through our secure portal, wherever your jobs are.

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Transparent Flat-Fee Contractor Catch-Up Pricing

ServiceFeeScopeDetails
Catch-Up Scoping & QuoteFREEOne-timeWe map the backlog, confirm deadlines and quote a flat fee before any work begins.
Single-Entity Catch-UpQuoted upfrontPer backlogJob costs, holdbacks, subcontractors, GST/HST and expenses rebuilt for every period behind.
Multi-Entity Catch-UpQuoted upfrontPer backlogEach company rebuilt and consolidated, with back returns filed.
Back GST/HST, T5018 & T2 FilingIncludedPer returnOutstanding GST/HST, T5018 and corporate returns prepared and filed from clean books.
Ongoing Monthly BookkeepingQuoted upfrontMonthlyOptional, keeps the books current so you never catch up twice.

All fees include HST, so the number quoted is the number you pay. Payment is by Interac e-Transfer to info@gondaliyacpa.ca with auto-deposit enabled and the security question set to Not Applicable. Please use our pricing calculator for an exact figure.

Behind on the Books? Start This Week.

Flat fee, fixed in advance. All fees include HST. 30-Day Money-Back Guarantee.

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Contractor Catch-Up Bookkeeping: Cities We Serve

Licensed CPA catch-up bookkeeping for contractors across Ontario, delivered virtually.

TorontoMississaugaBramptonScarboroughMarkhamVaughanOttawaHamiltonOakvilleAll of Ontario

Frequently Asked Questions

What is catch-up bookkeeping for a contractor?
It is bringing a construction business's books up to date when they have fallen behind. We rebuild your job costs, subcontractor payments, holdbacks, progress billings, WSIB and GST/HST from your invoices and bank records, prepare the T5018s you are behind on, and file your returns, so the books are accurate and able to withstand the scrutiny construction always draws from the CRA.
How far behind can my contractor books be?
There is no backlog we cannot handle. Whether you are three months or three years behind, on one job or many, we rebuild the records period by period. The longer books sit, the more the missed T5018s, holdback timing and classification issues compound, so the sooner we start the less it usually costs to put right.
Why do contractor books fall behind?
Contractors are on site all day, so the books are the first thing to slip. Job costs, subcontractor payments, holdbacks, progress billings, WSIB, equipment and GST/HST all move at once across multiple jobs. Falling behind is common; leaving it unfixed is what creates the exposure, because construction sits permanently on the CRA high-risk list.
What is a T5018 and do I have to file one?
The T5018 is the Statement of Contract Payments. If construction is your primary activity, you must report payments to subcontractors for construction services each year on a T5018 slip and summary. It is one of the most commonly missed filings, and missed or late T5018s draw CRA penalties. We prepare and file the ones you are behind on.
What is the T5018 threshold?
You must report a subcontractor on a T5018 when you pay them $500 or more for construction services in the year. Below that, no slip is required. As we catch up, we total each subcontractor's payments for every period so the reporting threshold is applied correctly and no reportable payment is missed.
What amount goes in Box 22 of the T5018?
Box 22 is the gross payment including GST/HST, not the net. This is one of the numbers contractors most often get wrong, because accounting software set to report net understates it. As we rebuild your subcontractor ledger, we report the full gross amount so your T5018s are correct and match what the CRA expects.
What if my subcontractor is not incorporated?
A subcontractor who is a sole proprietor or partnership must give you their SIN, or a Business Number, and incorporated ones must give their Business Number, so the T5018 can be filed. When books are behind, these are the hardest details to gather after a job ends. We collect and reconcile them as part of the catch-up.
Do I file a T5018 or a T4A for a subcontractor?
It depends on the work. Construction services go on the T5018. A contractor who provides non-construction services, such as bookkeeping or janitorial, goes on a T4A in Box 048 instead. As we rebuild, we sort each payee into the correct slip, which matters because the wrong slip is as much a filing failure as no slip at all.
How do you handle holdbacks in catch-up bookkeeping?
Carefully, because holdbacks have their own timing rules. We rebuild holdback receivable and payable schedules per project, and we apply GST/HST to a holdback when it is released and paid, not when it is earned. Booking holdbacks at the wrong time is a common reassessment cause, and we correct it for every affected period.
When is GST/HST due on a holdback?
When the holdback is released and actually paid, not when the work is done. The same applies to the T5018: a retained holdback only enters Box 22 in the period it is released. We rebuild your holdback schedules so the GST/HST and the T5018 reporting both fall in the right period.
How does GST/HST work on progress billings?
Construction services are generally taxable, and GST/HST applies when an invoice is issued or payment is received, whichever comes first. Deposits, milestone payments and holdbacks each have their own timing. Incorrect tax timing is a common reason for reassessment, so we reconcile the GST/HST on your progress billings period by period.
Can you claim the input tax credits I missed?
Usually, yes. As a GST/HST registrant your business can recover the GST/HST paid on materials, equipment, fuel and subcontractors through input tax credits, and when books are behind these are often unclaimed. We capture the credits you are entitled to as we rebuild, which reduces the net GST/HST you owe.
How do you handle subcontractor versus employee classification?
We review each worker against the CRA control, tools and integration tests. Employee-versus-subcontractor misclassification is a leading enforcement priority in construction, and a worker you treat as a subcontractor but who is really an employee can trigger retroactive CPP, EI, income tax and penalties. We flag and correct these as we catch up.
What records do you need to catch up my contractor books?
Your customer invoices and contracts, supplier and material receipts, equipment rental invoices, subcontractor records and agreements, time logs, payroll and WSIB records, bank and card statements, and any prior filings. Where records are missing we reconstruct from the bank data. We tell you exactly what to send and work from what you have.
Do you rebuild job costing?
Yes. We reconstruct costs per job across direct labour, materials, equipment and subcontractors, using loaded labour rates that include CPP, EI, WSIB, vacation and benefits rather than base wage, which alone understates true labour cost substantially. Job costing is how you finally see which projects actually made money.
What is work-in-progress and why does it matter?
Work-in-progress is the value of work performed but not yet billed on open jobs. Without a schedule for it, your financials swing with billings and either overstate or understate profit in any month. Matching revenue and cost to the work actually done is what lenders, bonding companies and the CRA expect, and we rebuild it as we catch up.
Do you file the GST/HST returns I am behind on?
Yes. Once your books are rebuilt and the GST/HST is reconciled, we prepare and file the outstanding returns for each period, claiming the input tax credits you are owed. See our HST return filing. Where penalties and interest apply, we advise on relief options.
Do you file my late corporate tax returns too?
Yes, that is usually the point of catching up. Once the bookkeeping is current we prepare and file the outstanding T2 corporate returns from clean numbers. See our catch-up corporate tax filing for construction. Filing from reconstructed, reconciled books is what keeps the returns defensible.
Can you fix books another bookkeeper got wrong?
Yes. We often find missed T5018s, holdbacks booked when earned instead of released, net amounts reported in Box 22, subcontractors who should have been employees, and no job costing at all. We review what was done, correct the coding period by period, and rebuild a clean set of books you and the CRA can rely on.
How long does contractor catch-up take?
It depends on how far behind you are, how many jobs and subcontractors you run, and the state of your records. A few months behind can be days of work; multiple years across many projects takes longer. We scope it upfront, give you a flat fee, and prioritise the periods with T5018, GST/HST and T2 deadlines first.
How much does contractor catch-up bookkeeping cost?
We quote a flat fee upfront based on the number of periods and your job and subcontractor volume, with no hourly billing, and all fees include HST. There are no surprises once we have scoped the work. Please use our pricing calculator for an exact figure.
What accounting software do you use?
We keep contractor books in QuickBooks Online or Xero, set up for job costing, holdbacks and subcontractor tracking. We rebuild your catch-up periods in the software and hand you clean, reconciled books you can carry forward. See our construction bookkeeping services.
What if I have unfiled returns and CRA letters already?
We can still help, and we should start now. We rebuild the books, prepare the outstanding T5018s, file the GST/HST and T2 returns, and deal with the CRA on your behalf. Where you are already under review, see our CRA audit support for construction companies. The sooner clean books are in front of the CRA, the better.
Do you reduce penalties and interest on late filings?
Where possible, yes. Filing the correct returns and T5018s stops further penalties accruing, and where a genuine hardship or circumstance beyond your control caused the delay, we can pursue taxpayer relief on penalties and interest. We cannot promise a specific outcome, but we pursue every relief you qualify for.
Is my business too small for catch-up bookkeeping?
No. A solo trade benefits as much as a large builder, because the T5018 rules, holdback timing and GST/HST obligations apply regardless of size, and the penalties for getting them wrong do not scale down. Small contractors are often where the T5018 and classification issues quietly go wrong.
Do you handle multi-job and multi-crew contractors?
Yes. The more jobs and subcontractors you run, the faster the books fall behind, because costs, holdbacks, WSIB and GST/HST multiply across projects. We rebuild each job's records and consolidate them so you get both job-level detail and a clean overall picture, on one flat fee.
Do you serve contractors outside Toronto?
Yes. We are a licensed Ontario CPA firm serving contractors across Ontario and Canada, entirely remotely. Everything is handled through our secure portal, so wherever your jobs are, we can rebuild and maintain your books.
What makes contractor bookkeeping different?
The moving parts. A construction business tracks job costs, subcontractor payments, holdbacks, progress billings, WSIB, equipment and GST/HST across many jobs at once, with T5018 reporting and worker-classification rules on top. Generic bookkeeping misses these; we build the books around how a contractor actually operates.
Do you provide financial statements once caught up?
Yes. Once your books are reconciled we produce clear financial statements with job-level margins and a work-in-progress schedule, so you can make decisions and, where needed, hand lenders, bonding companies or the CRA statements they can rely on. See our construction compilation reports.
How do I get started?
Please book a free consultation and tell us how far behind you are, how many jobs and subcontractors you run, and which returns and T5018s are outstanding. We scope the catch-up, quote a flat fee, tell you which records to send, and start with the periods that have deadlines. Book Free Consultation →

Meet Your Contractor Bookkeeping Team

Sharad Gondaliya, CPA

Sharad Gondaliya, CPA

Founder & Managing Director
Gondaliya CPA Professional Corporation

Sharad advises contractors on catch-up bookkeeping, T5018 compliance, holdbacks and back filings across Ontario and Canada.

Vandana Goel, CPA

Vandana Goel, CPA

Senior Accountant
Gondaliya CPA Professional Corporation

Vandana rebuilds contractor job costs, holdback schedules, subcontractor ledgers and GST/HST period by period until the books are current.

What Our Clients Say

1300+ five-star reviews from business owners across Ontario and Canada.

Related Industries We Serve

Other trades and owner-managed businesses we bring current and keep current.

Construction Companies

  • Job costing and work-in-progress schedules
  • Holdback and progress billing treatment
  • T5018 and subcontractor reporting

Skilled Trades

  • Owner-operator and small crew books
  • Equipment capital cost allowance
  • WSIB and payroll compliance

Self-Employed Professionals

  • Incorporation timing advised honestly
  • GST/HST registration and instalments
  • Deductions documented properly

Small Businesses

  • Flat-fee books, payroll and tax
  • Catch-up work and ongoing compliance
  • One firm from cleanup to filing

Behind on Your Contractor Books? Let a CPA Catch You Up.

We rebuild your job costs, subcontractors, holdbacks and GST/HST, prepare the T5018s and file the returns you are behind on, and make your business ready for the CRA scrutiny construction draws. Flat fee. All fees include HST.

Licensed CPA Ontario
1300+ Five-Star Reviews
T5018 & Holdbacks Handled
Flat Fee, Including HST
Book Free ConsultationConstruction Bookkeeping
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