Bookkeeping for consultants and professional service firms in BC
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Unpaid invoices, GST on fees and how the owner pays themselves are where a service firm’s books matter most. We keep them current every month.
Short answer: a BC consultancy, agency or professional firm needs its invoices and receivables tracked, GST at 5% charged and filed once it is registered, and a deliberate choice of salary or dividends for the owner. PST on accounting, engineering, architecture and similar services was due to start on 1 October 2026 and is paused. Orbis Accounting Ltd. keeps the books monthly, files GST, runs payroll and prepares the T1 or T2.
What is hard in a service firm’s books?
- Receivables. Revenue is invoiced before it is paid, so the books have to show who owes what and for how long.
- GST on fees. A firm that passes the $30,000 test charges GST on its invoices and claims input tax credits on its costs.
- The paused PST expansion. Five categories of professional service (engineering and geoscience count as one) were to start charging PST on 1 October 2026. The province paused it, and a firm that registered only for it is told to cancel.
- An incorporated consultant with one client can be treated as a personal services business, which costs more tax.
- How the owner is paid. Salary and dividends are taxed differently, and the choice affects CPP and RRSP room.
What we do each month for a service firm
- Reconcile the accounts and keep receivables current, with an aged list of unpaid invoices.
- File GST on schedule, with input tax credits backed by receipts that hold up.
- Run payroll for staff and for an owner who takes salary.
- Prepare the T1 or T2 from books closed every month.
Who this fits, and who it does not
It fits consultants, agencies, designers, developers, marketing firms and other professional practices in BC, sole proprietors or incorporated. It does not fit a firm that needs audited or reviewed financial statements, which is CPA work. Orbis is a bookkeeping practice, not a CPA firm.
Do consultants in BC charge PST on their fees?
Most professional services do not carry PST. The expansion to accounting, engineering, architecture, geoscience, non-residential real estate and security services was paused before its 1 October 2026 start. The pause guide explains what that means now.
When does a consultant have to register for GST?
Once taxable sales pass $30,000 over four consecutive calendar quarters, or in one quarter. The GST registration guide explains both tests.
Can my corporation be treated as a personal services business?
It can, if you work for one client in a way that would make you their employee without the corporation, and the other conditions are met. The PSB guide sets out the conditions.
Should I pay myself salary or dividends?
It depends on your income, CPP and RRSP plans. The salary and dividends guide sets out the trade-off.
The PST pause for professional services →
Tell us what your business does
Tell us your trade, roughly how many transactions a month and what you need filed, and a written plan and a fixed monthly price follow within one business day.
info@orbisaccounting.ca