Home inspector bookkeeping in Edmonton: jobs, GST and gear

Home inspectors, appraisers and stagers all ride the same real estate cycle. Busy springs, quieter winters, lots of kilometres between Ellerslie, Clareview and the outlying towns, and a vehicle full of gear that cost real money. Good home inspector bookkeeping in Edmonton handles three things well: per-job income, GST, and the vehicle and equipment that make the work possible. This guide covers all three, with notes for appraisers and stagers along the way.

1Track income job by job

Your income arrives one job at a time, paid by card on site, by e-transfer, or by invoice to a brokerage, lender or client. The risk isn't a big error, it's small ones: an unpaid invoice nobody chased, or an e-transfer recorded twice.

A simple job log fixes this. For each job, capture:

• Date and property address
• Client and who referred them (useful for marketing, too)
• Fee, GST charged and any add-ons, like a sewer scope or radon test
• How and when it was paid

Your booking or inspection software may already hold most of this. The bookkeeping step is matching it to deposits each month so every job is accounted for and every unpaid one gets followed up.

2GST for inspectors, appraisers and stagers

Home inspections, appraisals and staging are all taxable services. In Alberta that means 5% GST and no PST. You must register once your taxable sales pass $30,000 over any four consecutive calendar quarters, or in a single quarter.

For a busy inspector, that can come quickly. At an example fee of $400, about 75 inspections gets you to $30,000. A strong spring can do it in a single quarter, which means you have to start charging GST right away. Our GST registration guide walks through the timing.

Once you're registered, you claim back the GST you pay on fuel, equipment, software, insurance and staging purchases as input tax credits. For a business with expensive gear, that can be significant, which is why some new inspectors and stagers register voluntarily before they hit the threshold.

3Your vehicle: the biggest deduction

Inspectors drive to every job, appraisers often cover a wide area, and stagers haul furniture to listings in Leduc one day and Spruce Grove the next. You can deduct the business share of fuel, insurance, registration, repairs, and lease payments or capital cost allowance, with CRA limits on pricier vehicles.

The business share comes from a vehicle log: date, destination, purpose and kilometres for each trip, plus odometer readings at the start and end of the year. After a full base year, CRA lets you log a three-month sample in later years if your driving stays similar. Our vehicle log guide explains how, with examples that apply just as well to inspectors.

A cargo van or truck used almost entirely for staging deliveries may have a much higher business share than a family car, but you still need the log to show it.

4Equipment, tools and staging inventory

Larger purchases that last more than a year are usually claimed through capital cost allowance, a percentage of the cost each year, rather than all at once. Smaller tools may qualify for a faster write-off. Here's how common items typically break down; confirm the class for anything significant with your accountant.

Stagers should keep a simple inventory list of larger pieces: what it is, when you bought it, and what it cost. When pieces are sold, damaged or retired, that list makes the tax treatment straightforward.

5Other costs to claim, and a monthly routine

Beyond the vehicle and gear, common deductions include licensing and association fees, errors and omissions and liability insurance, continuing education, marketing and website costs, phone and internet (business share), a qualifying home office, and bookkeeping and accounting fees. Meals and entertainment are 50% deductible. If you hire a helper, decide carefully whether they're an employee or a contractor, and check whether you need Alberta WCB coverage.

A few notes for appraisers and stagers

Appraisers often bill lenders or appraisal management companies rather than homeowners, and may wait weeks to be paid. An accounts receivable list, reviewed monthly, stops unpaid reports from quietly becoming bad debts. If a client never pays, a properly recorded write-off reduces your income, and any GST you already remitted on that invoice may be recoverable.

Stagers usually juggle two kinds of income: an initial staging fee and a monthly fee for the furniture for as long as the home is listed. Record them in separate income accounts. Both are taxable, so GST applies to each once you're registered. If a listing sits for months, set a reminder to invoice each month, since forgotten extension fees are one of the easiest ways for a staging business to lose money.

Inspectors who add services such as radon testing or sewer scopes should track those as their own income lines. It shows which add-ons are worth the equipment they need.

If your books have fallen behind during a busy season, we can help you catch up fast. We work with inspectors, appraisers and stagers across Edmonton, Sherwood Park, Spruce Grove and Leduc. Book a free 15-minute call and tell us how your jobs are tracked today.

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This 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.