01 · Issue
Cash received up front is not always revenue; retainer and deposit balances need to reflect work still to be delivered
Fractional CTOs and Technical Consultancies
Accounting for fractional CTOs and technical consultancies
CPA support for Canadian fractional CTO practices and technical consultancies managing retainers, multiple clients, subcontractors, payroll, and retained earnings.
How we help
Support connects advisory and project revenue, delivery costs, subcontractor records, payroll, and owner decisions as the practice grows.
- Service 01 Monthly close and reporting
Revenue, direct costs, and operating expenses organized for a clear monthly view.
- Service 02 Subcontractor and payroll support
Payables, contractor records, payroll timing, and T4/T4A considerations kept on track.
- Service 03 Retainer and project tracking
Deposits and retainers separated from earned revenue as work is delivered.
- Service 04 GST/HST compliance
Returns and input tax credits tied back to invoices and source records.
- Coordinating layer Compliance Roadmap
A practical calendar for filings, tax reserves, compensation, and growth decisions.
From solo practice to delivery team
The books should change when the business does
Once a consultancy has recurring clients, subcontractors, or a small internal team, the financial picture needs to show more than invoices and expenses
- 01Protect the delivery margin
Separate direct project costs from overhead so the firm can see what each engagement contributes
- 02Keep the team records clean
Subcontractor invoices, payroll, reimbursements, and retainers each need their own clear audit trail
- 03Plan the owner’s next move
Use current records to make compensation, tax-reserve, and capacity decisions before the cash is committed
Tax and bookkeeping issues to watch
Patterns that come up in practice for this role and that a generic small-business accountant may not be watching for.
02 · Issue
Subcontractor costs need clear contracts, invoices, payment records, and a distinction from employee payroll
03 · Issue
As profit grows, owner compensation, tax instalments, and reserves need a plan before cash is distributed
Related guides
Detailed breakdowns of the decisions that come up most often for this role.
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Deposits, Retainers, and Deferred Revenue
Why cash received before delivery is a liability, not revenue.
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Subcontractor Expenses for Consulting Firms
Recordkeeping and deduction considerations for subcontracted work.
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Project Profitability for a Small Consulting Firm
A practical view of revenue, direct costs, and capacity.
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Fractional CTOs and Technical Consultancies
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