Consultants · Edmonton
Bookkeeping for consultants in Edmonton: corporate books made simple.
You incorporated so you could focus on the work. Here's how to run the corporate side, from invoices and GST to a calm year-end, in a few hours a month.
By the Plum team- Updated Oct 2026
- 7 min read
- Your corporation is its own taxpayer. Give it its own bank account and card, and run every business dollar through them.
- Number your invoices, show your GST number, and chase anything over 30 days.
- Most consultants register for GST early, because business clients get it back.
- Your T2 is due six months after year-end, but the tax is due in two or three. Do the books monthly and year-end stops being a crisis.
Most consultants incorporate for good reasons: a lower tax rate on profit you leave in the company, a more professional face for clients, and room to grow. What nobody mentions is that you've just created a second taxpayer that needs its own books. Bookkeeping for consultants in Edmonton isn't complicated, but it is different from tracking a sole proprietorship on your personal return.
This guide covers what an incorporated consultant actually needs to do: how to invoice, how to separate company money from yours, how GST fits in, and what year-end really involves. It applies whether you consult from a home office in Windermere, a shared space on 124 Street, or a kitchen table in St. Albert.
1Bookkeeping for consultants in Edmonton starts with separation
A corporation is a separate legal person. Its money is not your money until it pays you, through salary, dividends or a documented reimbursement. That one idea drives almost every bookkeeping decision you'll make.
- One business bank account in the corporation's name. Every client payment lands here.
- One business credit card for company expenses only: software, professional dues, travel to client sites.
- A regular way to pay yourself. Salary through payroll, dividends, or both. There are real trade-offs between the two, so decide with your accountant.
- Reimbursements, not mixed spending. If you pay for a business lunch personally, the corporation can pay you back against the receipt.
When personal costs slip through the corporate account, they don't vanish. Your bookkeeper has to post them to a shareholder loan account, and if that balance sits as money you owe the company for too long, it can end up taxed as income. Clean separation avoids all of that.
2Invoices that get paid (and survive an audit)
Your invoices are the source of your revenue numbers, so they need to be consistent. A good consulting invoice shows:
- Your corporation's legal name (not just your name) and address
- A unique, sequential invoice number
- The client's name, the date, and a clear description of the work or period billed
- Hours or days times your rate, plus any agreed expenses
- 5% GST shown separately, with your GST number
- Payment terms, such as net 30, and how to pay
Create invoices in QuickBooks Online or Xero rather than a word processor. The software numbers them, tracks who has paid, and gives you an accounts receivable aging report so you can see which clients are stretching past 30 or 60 days. For a consultant with three or four big clients, one slow payer can be a third of your income, so that report matters.
Two more invoicing habits worth building early. First, if you rebill expenses like travel or software licences to a client, put them on the invoice as their own lines and record the original cost as an expense, so your revenue and costs both show in full. Second, if a client pays a retainer before the work starts, record it as a deposit and apply it to the invoices it covers. That way your monthly revenue stays honest, and one big upfront payment doesn't make a single month look far better than it was.
3GST for incorporated consultants
Your corporation must register for GST once its taxable sales pass $30,000 over any four consecutive calendar quarters, or in a single quarter. For a consultant, a single good contract can cross that line in one quarter. Our GST registration guide walks through the timing.
In practice, most consultants register from the start. Your clients are businesses that claim the GST back as input tax credits, so the 5% costs them nothing, and you get to claim back the GST you pay on laptops, software, coworking and travel.
Once registered, your bookkeeping needs to split every sale and every expense into the amount before tax and the GST. That's what makes the GST return a ten-minute job instead of a weekend. Most small corporations file annually, though quarterly filing can suit you if you'd rather pay smaller amounts more often.
4What consultants usually spend, and where it goes
| Expense | How it's usually handled |
|---|---|
| Laptop, monitor, phone | Capital asset, depreciated through CCA |
| Software subscriptions | Expense in the month you pay |
| Professional dues, courses | Expense, if related to your consulting work |
| Client meals | Expense, 50% deductible for tax |
| Travel to client sites | Expense, or mileage reimbursed to you |
| Home office | Usually rent or a reimbursement from the corporation, not a T2125 claim |
| Your salary | Payroll expense, with CPP and source deductions |
| Your dividends | Not an expense; paid from after-tax profit |
The home office line trips up a lot of people who used to be sole proprietors. A corporation doesn't claim a home office the way you did on your T2125. Ask your accountant how they prefer to handle it. It depends on whether you rent or own and how much space you use.
5Year-end without the scramble
Your corporation picks its fiscal year-end when it files its first return. Many consultants choose December 31, but any month-end works, and an off-peak year-end can mean more attention from your accountant.
Deadlines to put in your calendar:
- Two months after year-end: balance of corporate tax generally due (three months for many small Canadian-controlled private corporations).
- Six months after year-end: T2 federal return and Alberta AT1 return due.
- Last day of February: T4 slips for any salary, and T5 slips for any dividends, paid in the prior calendar year.
- Every year: your Alberta annual return with the corporate registry, on the anniversary month of incorporation.
Before you hand anything to your accountant, run through this:
6A monthly routine that takes an hour
The consultants who dread year-end are almost always the ones who did nothing for eleven months. A simple monthly rhythm fixes that: send all invoices, match payments, categorize card and bank transactions, attach receipts in the app, and reconcile. Then glance at three numbers: revenue this month, cash in the bank, and receivables overdue.
If you've fallen behind, it's fixable. Our catch-up bookkeeping brings a corporation current, whether it's three months or three years. We work with incorporated consultants across Edmonton, St. Albert, Sherwood Park and Leduc on flat monthly fees. If you'd like to see how your setup looks, book a short call with Joey or Steph.
7Questions people ask
Do incorporated consultants need a separate bank account?
Yes. Your corporation is a separate legal person, so its income and expenses should run through its own business bank account and credit card. Mixing them makes your books harder to defend and can create shareholder loan problems.
When is a corporate tax return due in Alberta?
The T2 federal return, and Alberta's AT1 return, are due six months after your corporation's fiscal year-end. Any balance owing is generally due two months after year-end, or three months for many small Canadian-controlled private corporations.
Does a consultant have to charge GST?
If your corporation's taxable sales pass $30,000 over four consecutive calendar quarters, or in a single quarter, it must register and charge 5% GST. Most consultants billing other businesses register early because their clients claim the GST back.
How often should a consultant do their bookkeeping?
Monthly is the sweet spot. It keeps invoices and receivables current, makes GST filing quick, and means year-end is a review rather than a rebuild.
Can I pay personal expenses from my corporate account?
You can, but each one becomes a shareholder loan or a taxable benefit that has to be recorded and dealt with. It's much simpler to pay yourself first, then spend from your personal account.
Want this off your plate?
Flat-fee bookkeeping for consultants. Month to month, no surprises.
Book a free 15-min callThis article is general information for Alberta businesses and isn't tax or legal advice. Rules and thresholds change, so confirm your situation with your accountant or CRA.