Security & Surveillance Installation
Project Overview
Project: Year-One "Audit-Ready" Cleanup Client Industry: Security & Surveillance Solutions Service: 12-Month Financial Book Cleanup & Catch-up
1. The Challenge
• Mixed Costs: Equipment hardware purchases (cameras, sensors) mixed with general office supplies. • Untracked Labor: Subcontractor payments made without tracking for T5018 reporting. • Revenue Recognition: Deposits for installations were recorded as income before the work was actually completed.
2. The Solution
• Account Reconciliation: Reconciled 12 months of bank and credit card statements from scratch. • COGS Optimization: Properly categorized "Cost of Goods Sold" vs. "Operating Expenses" to give the owner a true view of their project margins. • HST Alignment: Audited all 12 months of ITCs (Input Tax Credits) to ensure every dollar of tax paid on high-end surveillance equipment was claimed. • Deferred Revenue: Adjusted the books to reflect income only when the surveillance systems were fully installed, preventing an overpayment of tax on unearned income.
3. The Result
• Zero-Stress Year-End: Handed off a "clean" file to the Tax Accountant, significantly reducing the client's year-end accounting fees. • Financial Clarity: Provided the owner with a clear Profit & Loss statement showing exactly which surveillance projects were most profitable. • Compliance: Ensured the business was 100% HST compliant before their first government deadline.