Accounting for financial advisors in Ontario
Independent advisors earn fee and commission income, carry compliance costs, and face the salary-vs-dividend decision every year once incorporated.
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taxifi · Financial Advisors
This month
- Bookkeeping Current
- Payroll & source deductions Filed
- HST Filed
- Year-end tax (T2) On track
The problems we take off your plate
Fee and commission income
Fee-based and commission income are tracked separately so you see how the practice really earns.
Compliance and platform costs
Dealer, compliance, and platform costs are tracked and documented so nothing deductible is missed.
Paying yourself
Your accountant plans salary vs. dividends for your situation each year, because the right mix changes.
What’s included
Published prices for incorporated Ontario financial advisors. Everything below is handled.
- Fee and commission bookkeeping
- Expense and compliance-cost tracking
- HST returns prepared and filed
- Salary-vs-dividend planning with your accountant
- Year-end corporate tax (T2), from $1,000 a year
| Area | A typical setup | With taxifi |
|---|---|---|
| Your books | Weeks or months behind | Current every day |
| Year-end (T2) | A spring scramble, billed extra | Included, no surprise invoice |
| Your accountant | Metered by the hour | Unlimited questions, flat monthly |
Exempt commissions, taxable advice, and the line between them
Financial advisory is one of the hardest HST areas in Canadian small business. Arranging financial instruments is generally an exempt financial service, so commission income typically carries no HST. But fee-based financial planning, consulting, and certain administrative or referral arrangements can be taxable — and many practices earn both without separating them.
The consequences run in both directions. Exempt revenue generally blocks input tax credits, so HST on your rent, software, and marketing is a real cost. Taxable revenue may create a registration obligation and an apportionment exercise. Practices that added fee-based planning to a commission book are the classic case. Have the revenue lines reviewed once and set the books up to keep them apart from then on.
Common questions
I'm an incorporated advisor. Is that a fit?
Yes. Incorporated advisory practices are exactly who the monthly service suits.
Can you help me pay myself efficiently?
Yes. Your accountant plans salary vs. dividends for your situation each year.
Do financial advisors charge HST in Ontario?
It depends on what is being supplied. Commissions from arranging financial instruments are generally exempt financial services, while fee-based planning and consulting can be taxable. A practice earning both may have registration and apportionment obligations, and the split is specific enough that it deserves an accountant's review rather than a rule of thumb.
Can I claim input tax credits on my office costs?
Generally only to the extent your revenue is taxable rather than exempt. A purely commission-based practice typically cannot recover the HST inside rent, software, and marketing, which makes it a permanent cost to budget for. Mixed practices apportion, which is another reason the revenue split needs to be tracked deliberately.
Books and taxes for your financial advisory practice, done
Bookkeeping from $99 a month, accountant-reviewed from $299, corporate T2 from $1,000 a year. Prices are published; a call confirms the fit.
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