Accounting for flooring contractors in Ontario
Flooring mixes supply-and-install jobs with labour-only work, which changes how materials, margin, and HST flow through the books.
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taxifi · Flooring Contractors
This month
- Bookkeeping Current
- Payroll & source deductions Filed
- HST Filed
- Year-end tax (T2) On track
The problems we take off your plate
Supply-and-install vs labour-only
The two kinds of work carry different margins and HST flows. We track them separately so your pricing is built on real numbers.
Materials that eat the margin
Product costs are captured per job so overruns show up now, not at year-end.
Subs and crews, reported right
T5018 slips for subs, payroll for the crew, both handled and filed on time.
What’s included
Published prices for incorporated Ontario flooring contractors. Everything below is handled.
- Supply-and-install vs labour-only jobs tracked separately
- Materials and inventory costs captured
- T5018 subcontractor slips prepared and filed
- Crew payroll and source deductions
- 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 |
Materials, T5018s, and holdback timing
Flooring work is construction, so the T5018 rules apply: payments to subcontractors for construction services are generally reported on T5018 slips whether or not the sub is incorporated. Installers engaged job-to-job are exactly the population this catches, and February is a bad time to discover the requirement.
Materials are the other half. HST paid on flooring, underlay, adhesives, and tools generally comes back as input tax credits — but only for purchases actually captured in the books, which is why daily bookkeeping beats a glovebox. And holdbacks on construction contracts have their own HST timing, generally not due until the holdback becomes payable. Job-level books handle all three by default.
Common questions
I do both supply-and-install and labour-only. Does that matter?
Yes, and we track them separately so your material margins and labour rates are both visible.
Do you handle my installers' T5018s?
Yes. Sub payments are tracked and reported as CRA expects from construction businesses.
Do I issue T5018 slips to installers?
Generally yes where flooring installation is construction work and the installer is a subcontractor providing construction services — the requirement applies whether or not they are incorporated. Returns are due six months after the end of your chosen reporting period.
Can I claim the HST back on materials?
Generally yes, as input tax credits, provided the purchases are captured with proper records. That last part is where money is lost: credits only exist for transactions the books know about, which is the argument for bookkeeping that happens daily rather than at year-end.
Books and taxes for your flooring contractor, 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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