Accounting for towing companies in Ontario
Towing runs around the clock: motor-club calls, cash jobs, impound storage, and trucks that cost as much as houses, all hitting the books at odd hours.
CRA EFILE authorized · Every filing signed by an accountant · Switching is free — about an hour of your time
taxifi · Towing Companies
This month
- Bookkeeping Current
- Payroll & source deductions Filed
- HST Filed
- Year-end tax (T2) On track
The problems we take off your plate
Motor-club settlements that never match
Club payments are reconciled to your calls so fees and adjustments are all accounted for.
Trucks that cost like houses
Your fleet is tracked and claimed over time through capital cost allowance.
Around-the-clock cash and card revenue
Every channel is reconciled so late-night calls do not become bookkeeping mysteries.
What’s included
Published prices for incorporated Ontario towing companies. Everything below is handled.
- Call revenue reconciled across motor clubs, card, and cash
- Impound and storage income tracked
- Trucks tracked for capital cost allowance
- Driver payroll or contractor reporting
- 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 |
Fleet, fuel, and around-the-clock payroll
A towing business is a fleet business with a service attached. Trucks and equipment are generally capital assets deducted over time through capital cost allowance rather than expensed at purchase, with financing interest typically deductible as paid — and the class matters enough to set up correctly once. Fuel, insurance, licensing, and maintenance need records clean enough to survive a review.
Payroll is the other pressure point, because towing runs nights, weekends, and holidays. Overtime, shift premiums, and on-call arrangements all flow through source deductions with monthly remittance deadlines, and late remittances carry graduated penalties. Where work comes from motor clubs, insurers, or municipal contracts, revenue tracking by payer is what tells you which contracts are actually worth having.
Common questions
Motor-club payments never match the calls. Can you fix that?
Yes. Club settlements are reconciled to your calls so nothing is missed or double-counted.
Are my drivers employees or contractors on the books?
Either is handled correctly, with payroll or contractor reporting as applies.
How are tow trucks deducted?
Generally as capital assets through capital cost allowance over several years rather than as a full deduction in the purchase year, with financing interest typically deductible as it is paid. The applicable class depends on the vehicle and equipment, which is worth setting up correctly at acquisition.
What payroll issues are specific to towing?
Round-the-clock operations mean overtime, shift premiums, and on-call pay all running through source deductions, with monthly remittance deadlines and graduated penalties for lateness. Payroll that is run properly each cycle costs far less than remittance penalties plus interest.
Books and taxes for your towing company, 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.
Get Started