01 · Issue
Monthly retainers, project fees, and advisory arrangements should be documented separately
Fractional CTOs and Technical Advisors
Accounting for fractional CTOs and senior technical advisors.
Tax planning for Canadian fractional CTOs and technical advisors with retainers, U.S. clients, equity-like arrangements, and corporation planning.
Common contract patterns
The accounting should follow the work pattern. These are the contract types and arrangements that come up most often for this role.
01
technical leadership
02
architecture review
03
startup advisory
04
vendor and team oversight
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
Equity, options, or success-fee arrangements may require tax advice beyond standard bookkeeping
03 · Issue
Owner compensation, RRSP room, CPP, and retained earnings planning matter once income becomes predictable
Deeper reading
Higher-rate technical contractors typically have more at stake than filing. Incorporation timing, GST/HST treatment, compensation planning between salary and dividends, retained earnings strategy, and PSB fact review are all decisions that come up as contracts grow and rates rise.
The pages below address the specific questions that come up most often for this role.
Related guides
Detailed breakdowns of the decisions that come up most often for this role.
- G · 01
Reasonable Salary for Incorporated IT Contractors
How incorporated IT contractors should think about shareholder compensation, what CRA considers reasonable, and what salary creates that dividends do not.
→ - G · 02
Sole Proprietor vs Corporation for IT Contractors
How Canadian IT contractors should compare sole proprietorship and incorporation for tax, admin cost, PSB risk, and cash flow.
→ - G · 03
Salary vs Dividend for Incorporated IT Contractors
How incorporated Canadian IT contractors should compare salary and dividends for tax, CPP, RRSP room, cash flow, and corporate planning.
→ - G · 04
Personal Services Business Risk for Incorporated IT Contractors
What a personal services business determination means, how CRA assesses it, and the tax and expense consequences for incorporated contractors.
→ - G · 05
U.S. Client Income for Canadian IT Contractors
What Canadian IT contractors should track when U.S. clients pay in USD, including invoices, exchange rates, GST/HST facts, and support.
→
Fractional CTOs and Technical Advisors
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