Consultants · Edmonton
IT contractor bookkeeping in Edmonton: agencies, slips and US clients.
Developers, data people and engineers billing through agencies or straight to clients have a few extra moving parts. Here's how to handle each one.
By the Plum team- Updated Oct 2026
- 7 min read
- Record every invoice, even ones an agency generates from your timesheets.
- T4A slips are a cross-check, not your income record. Your books come first.
- Canadian clients get GST; most US clients get 0%, but you still claim your input tax credits.
- Run US income through a USD account and record it in Canadian dollars at a consistent rate.
IT and engineering contractors have it better than most when it comes to bookkeeping: few transactions, big invoices, and mostly digital expenses. But IT contractor bookkeeping in Edmonton has its own wrinkles. Agencies sit between you and the client, slips arrive that may or may not match your records, and that US client paying in dollars creates a currency question every month.
This guide is for developers, data engineers, cloud architects, project managers and professional engineers billing through their own corporation or as sole proprietors, whether you work from a home office in Terwillegar, Sherwood Park or St. Albert, or commute Downtown on contract.
1Working through agencies
A lot of IT and engineering work in Edmonton runs through staffing agencies. The usual setup: the agency contracts with your corporation, you submit timesheets, and the agency pays you weekly, biweekly or monthly at your hourly rate.
Some agencies ask you to invoice them. Others generate the invoice themselves from your approved timesheet, sometimes called self-billing. Either way, record each one as an invoice in your books, not just as a deposit when the money arrives. That way you can see which weeks are paid, catch short payments, and prove your revenue at year-end.
- Save every approved timesheet with its matching invoice or remittance advice.
- Check the agency is applying the right rate and the right GST.
- Watch for retroactive rate changes or overtime that never shows up.
Payment timing varies a lot between agencies. Some pay weekly within days of timesheet approval; others pay monthly on net 30 terms or longer. Note each agency's schedule in your bookkeeping software so a late payment stands out right away, rather than three months later when you finally notice a gap.
2T4A vs invoice: which number counts?
If you're unincorporated, a Canadian client or agency will often send you a T4A showing fees for services paid during the year. New contractors sometimes treat that slip as their income figure. Don't. Your books are the record; the slip is a cross-check.
| Your invoices | A T4A slip | |
|---|---|---|
| Who prepares it | You (or the agency, from your timesheets) | The payer |
| Timing basis | When you earned or billed it | When they paid you |
| Includes GST? | Shown separately | Depends on how the payer reports it |
| What to do with it | Report revenue on your T2125 or T2 | Compare to your books and explain differences |
A December invoice paid in January is a common reason the slip and your books don't match. That's fine, as long as you can explain it. Incorporated contractors usually don't receive T4As, which is one more reason the corporate books have to be complete on their own. If you're still deciding on structure, see should I incorporate in Alberta.
3GST for IT contractors
At typical contract rates, most IT contractors pass the $30,000 small supplier threshold quickly, often in a single quarter. Once registered, you charge 5% GST to Alberta clients and agencies. If the place of supply is an HST province, such as an Ontario client receiving your services there, the rate can be different, so check how your contracts are set up.
Claim input tax credits on the GST you pay for laptops, monitors, software, cloud services, coworking and courses. For a contractor whose costs are mostly subscriptions, it's easy to miss the ones billed in US dollars by foreign companies that don't charge GST. Those don't give you a credit, so don't guess one.
4US clients and US dollars
Working directly for a US company is increasingly common. Three things to set up:
The W-8BEN-E
US payers will ask for this form to confirm your corporation is a foreign business. Individuals fill in the W-8BEN instead. It helps the payer avoid withholding US tax from your payments. If a US client starts withholding, ask why straight away.
GST at 0%, usually
Most services you supply to a US business that isn't GST-registered are zero-rated exports. You charge no GST, but you still claim input tax credits on your costs. There are exceptions, especially for services connected to property or people in Canada. Our guide to charging GST to US clients goes deeper.
Recording USD income
Open a USD account so you're not forced to convert every payment at a poor rate. In QuickBooks Online or Xero, turn on multi-currency, invoice in USD, and let the software record the Canadian dollar value. When you later convert or the rate moves, the difference becomes a foreign exchange gain or loss. Pick a rate source, like the Bank of Canada daily rate, and use it consistently.
5Expenses IT contractors often miss
Because most of your costs are small digital subscriptions, it's easy to leave money on the table. Common ones we find when we take over a contractor's books:
- Cloud and dev tools: hosting, test environments, code repositories, password managers and AI tools you pay for personally but use for client work.
- Certifications and exam fees: cloud, security and project management certifications, plus the study materials.
- Professional dues: including APEGA dues for engineers.
- Hardware: laptops, monitors, docks and phones, claimed through capital cost allowance. Computers are usually Class 50.
- Phone and internet: the business-use share.
- Liability insurance: many agencies require errors and omissions coverage.
- Accounting and bookkeeping fees: yes, those count too.
The fix is simple: run every work subscription through one business card, and review the card statement monthly for anything that slipped onto a personal card instead.
6A monthly routine for contractors
Engineers offering services through their own company should also check APEGA's permit to practice requirements, which apply to the business, not just to you personally. It's not a bookkeeping item, but it's one that surprises people.
Plum does flat-fee bookkeeping for IT and engineering contractors across Edmonton, Sherwood Park and St. Albert, in QuickBooks Online or Xero, including multi-currency. If your agency statements and bank deposits stopped lining up months ago, book a call and we'll sort it out.
7Questions people ask
Do IT contractors charge GST to staffing agencies?
If you're GST-registered and the agency is in Canada, yes. You charge 5% GST in Alberta (or HST if the place of supply is an HST province) and the agency claims it back. Many agencies build GST into their timesheet and payment systems.
Will I get a T4A from an agency or client?
If you're unincorporated, a Canadian payer will often issue a T4A showing fees for services. Report your income from your own records either way, and check that the slip matches. Incorporated contractors usually don't receive one.
Do I charge GST to US clients?
Usually not. Most services supplied to a non-resident business that isn't registered for GST are zero-rated exports, so you charge 0% but can still claim input tax credits. There are exceptions, so check the details for your contracts.
Why is a US client asking me for a W-8BEN-E?
US payers use it to confirm you're a foreign business so they don't withhold US tax from your payments. Corporations use the W-8BEN-E; individuals use the W-8BEN.
How do I record income paid in US dollars?
Record it in Canadian dollars using a consistent exchange rate, such as the Bank of Canada rate for the day. QuickBooks Online and Xero handle multi-currency, and differences when you convert are tracked as exchange gains or losses.
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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.