1. You're Incorporating a Business
Choosing between a sole proprietorship and a corporation has major tax implications. A CPA can help you decide the right structure and set up your books from day one.
2. Your Side Hustle Is Making Real Money
Once freelance or side income exceeds $30,000, you need to register for HST. An accountant ensures you're compliant and claiming every deduction available.
3. You've Received a CRA Notice or Audit Letter
Don't respond to the CRA alone. A CPA can represent you, prepare the documentation, and negotiate on your behalf — often saving you thousands.
4. You're Buying or Selling Property
Real estate transactions trigger capital gains, land transfer tax, and potential HST implications. An accountant helps you plan the timing and structure to minimize taxes.
5. Your Business Revenue Crossed $500K
At this level, tax planning moves beyond basic deductions. You may benefit from salary-vs-dividend optimization, a holding company, or income-splitting strategies that require CPA expertise.
6. You're Hiring Employees
Payroll means CPP, EI, income tax deductions, T4s, and remittances. Mistakes trigger penalties. A bookkeeper or accountant keeps you compliant and on schedule.
7. You're Behind on Filing
If you have unfiled returns — personal or corporate — an accountant can bring you current, apply for penalty relief, and set up a payment plan with the CRA.
8. You're Going Through a Major Life Change
Marriage, divorce, inheritance, retirement, or the death of a spouse all create tax implications. A CPA can help you navigate the financial complexity during difficult times.
9. You're Spending Too Much Time on Your Books
If bookkeeping takes more than a few hours per month, it's costing you more than hiring a professional. Your time has a dollar value — spend it on your business.
10. You Don't Know What You Don't Know
Tax law is complex and changes frequently. If you're unsure whether you're maximizing deductions, structured optimally, or at risk of penalties — that uncertainty itself is a reason to talk to a professional.
The Cost of Waiting
The CRA charges 5% of your balance owing as an immediate late-filing penalty, plus 1% per month up to 12 months. Interest compounds daily. A $10,000 tax bill can become $12,700 if you wait a year to file. The cost of an accountant is almost always less than the cost of making a preventable mistake.
Quick Self-Check
If any of these apply to you, an accountant could save you time, money, or both:
- ☐I have self-employment or business income
- ☐I own rental property or investments
- ☐I have employees or contractors
- ☐I’m not sure I’m claiming all my deductions
- ☐I have unfiled returns from previous years
- ☐My business is growing faster than I expected
Checked two or more? It’s time to talk to a professional.
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