Accountant for engineers and engineering firms.
A specialist accountant for engineers, not a generalist who treats your practice like any other small business. We handle tax, bookkeeping and corporate accounting for engineering firms the way they actually run, from solo P.Engs in Whitby, Oshawa and Ajax to multi-discipline consulting practices across the GTA, all from a chartered professional accountant (CPA, CA) with 20+ years working with engineering clients.
Engineering accounting follows the project, not the calendar.
Most general accountants treat an engineering firm like any other small business. It isn't. Most of what you bill is earned across project milestones, so revenue recognition has to follow the work, not the invoice date. Sub-consultants get paid corp-to-corp, T4A or T4, and the CRA pays attention to which one you pick. A lot of your design and development work qualifies for SR&ED tax credits, and most accountants either skip it or assume it is only for software companies.
So engineering firms genuinely need an accountant for engineers, not a generalist learning on your file. We've handled tax planning, bookkeeping and corporate accounting for engineering consultants, design firms and incorporated technical professionals across Durham Region and the GTA for over 20 years. The accounting follows how the work is actually delivered, the patterns are familiar, and the tax planning wins are real.
Engineering accounting services, the full picture.
One firm for tax services, bookkeeping, payroll and advisory. One point of contact for the engineering practice and the personal return that sits behind it, with a consistent set of advice so nothing falls between your accountant and your bookkeeper.
Personal and corporate tax
Your personal T1 and your engineering corporation T2 tax return filed together, planned together, and on time every year, with the salary and dividend mix set for tax efficiency.
SR&ED claim support
An eligibility review for civil, mechanical, electrical and structural work, with expenditure tracking and claim coordination alongside a SR&ED specialist when a claim is warranted.
Project accounting and WIP
Revenue recognition, work in progress, deferred revenue and project margin tracked month by month, not just at year-end, so the books show the real finances of each job.
Monthly bookkeeping and financial statements
Bookkeeping reconciled to your project management tool, your bank and your sub-consultant invoices, with financial statements that show the real cash flow of the firm.
Incorporation and tax planning
Whether to incorporate, when, and how to pay yourself once you do. Salary, dividends or both, modelled with your real numbers as part of a wider tax strategy and long-term financial planning.
Sub-consultant and payroll arrangements
Contractor versus employee classification documented properly, payroll run cleanly for staff, and the right T4 and T4A slips issued at year-end.
Four things most accountants miss.
These are the questions that come up almost every time an engineering firm changes accountants. Worth knowing whether or not we end up working together.
Project revenue is not 'cash in, income earned'
If you bill a milestone in December but the work runs through March, the income belongs across both years. The CRA expects an accrual basis, so revenue follows percentage-of-completion or another defensible method, and you cannot defer tax simply by delaying an invoice. Get it wrong and you either overpay tax or get reassessed later. We set up the work in progress tracking and review it monthly.
SR&ED is bigger than software
Civil, mechanical, electrical and structural engineers all routinely do work that qualifies for SR&ED tax credits. The test is technological uncertainty resolved through a systematic investigation, not routine design or normal engineering iterations, so the distinction matters. Most firms don't claim because their accountant never raised it. We review eligibility and coordinate the claim when the work supports one.
Incorporating as a P.Eng works differently than other professions
In Ontario a corporation cannot practise professional engineering on its own. Instead, a firm offering engineering services to the public needs a PEO Certificate of Authorization, with a P.Eng who takes responsibility for the work. This is not a medical or dental style professional corporation with licensed-shareholder-only rules, so an engineering corporation has more flexibility on ownership. A business name that includes 'engineering' or 'engineers' also needs PEO consent. TOSI still applies to dividends paid to family the same way it applies to any private company.
T4 vs T4A vs corp-to-corp for sub-consultants
Junior engineers, drafters and specialty consultants can be paid in three different ways with three different tax outcomes. The CRA weighs control, ownership of tools, chance of profit and how integrated the worker is, not the label you use. Pick the wrong one and you create source-deduction problems for you and tax problems for them. We document the arrangement so it holds up to a CRA review.
Three kinds of engineering clients.
Solo P.Engs
Independent consultants billing their own time. We handle the personal T1, the corporation return if incorporated, and quarterly check-ins on cash flow and tax instalments.
Small consulting firms
Two to ten person practices with mixed staff and contractors. We sort out payroll, SR&ED where relevant, and project margin reporting so you can see which work actually pays.
Multi-discipline design firms
Larger engineering firms with sub-consultants, joint-venture projects and bonded work. We coordinate with your project managers and your bonding company and keep the accounting consistent across the firm.
You'll work directly with Elena.
EK CPA Pro is owner-operated. When you call, you're talking to the CPA, CA who's actually doing the work, not a junior who hands the file off at year-end. Elena has been working with owner-operated businesses across Durham Region since 2009, and is a graduate of CPA Canada's In-Depth Tax Program.
Questions engineers ask first.
Do engineering firms really need a specialized accountant?
Most do. An engineering firm earns revenue across project milestones, claims SR&ED tax credits a generalist often misses, pays sub-consultants in ways the CRA scrutinizes, and may need a PEO Certificate of Authorization to offer services to the public. A general accountant can miss all of it. A specialized accountant for engineers has seen the patterns before, which usually means cleaner books, lower tax and fewer surprises. That is the whole reason engineering accounting exists as its own thing.
What does an accountant for engineers actually do?
The same core work as any CPA, personal and corporate tax, bookkeeping, payroll and financial statements, but built around how an engineering practice runs. That means project revenue recognition and work in progress, SR&ED eligibility reviews, sub-consultant classification, and incorporation and compensation planning. The accounting services are shaped to the engineering firm, not a generic small-business template.
Should I incorporate as a P.Eng?
Usually once your billings comfortably exceed what you need personally, because the small business deduction gives you a lower tax rate on retained earnings. In Ontario a firm that offers engineering services to the public needs a PEO Certificate of Authorization, and a business name with 'engineering' in it needs PEO consent, but ownership is more flexible than a medical or dental professional corporation. The decision also depends on your insurance, debt and how you are saving for retirement. We model both options with your real numbers.
Am I doing SR&ED-eligible work?
Probably more often than you realize, and not only if you write software. If you are resolving genuine technological uncertainty through a systematic investigation, testing approaches that are not off-the-shelf and could fail, you may qualify. Routine design and normal engineering iterations do not count. We do an eligibility review in the first meeting and tell you whether a claim is worth pursuing.
How do I recognize project revenue?
Most engineering work uses percentage-of-completion: you book revenue as the work is done, not when it is invoiced or paid. The CRA expects an accrual basis, so you cannot push income into next year just by holding an invoice. We set up the system, train the bookkeeping side, and review work in progress monthly so the books always tell the truth.
Can an engineer become a CPA?
Yes. Plenty of engineers go on to earn the CPA designation, and the analytical background tends to suit it. That is a separate path from hiring an accountant, though. Most P.Engs would rather bill their engineering time than learn tax law, so they bring in a CPA who already knows the engineering firm patterns. Either way, the work your firm files still has to stand up to the CRA.
What expenses can I deduct as an engineering consultant?
Most operating costs of the practice: software and CAD licences, computers, professional liability insurance, PEO and association dues, sub-consultant fees, home office and continuing education. Equipment is written off through capital cost allowance, with computers and most software in fast classes and furniture slower. The grey areas are usually vehicle use, meals and travel to project sites. We go through the expense list in the first meeting and tell you what holds up with the CRA.
How do you bill?
Fixed-fee, quoted up front. You will know the cost of your year-end, tax filings and monthly bookkeeping before we start. No surprise invoices, no hourly billing.