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TruNorth Accounting gives growing businesses across Canada real-time financial clarity — not just a report once a year. Tax, bookkeeping, payroll, and CFO-level guidance from a team that treats your business like their own.

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Accounting built around your business, not a filing deadline.

Six services, one relationship. Everything below is designed to work together — so your tax strategy, your books, and your payroll are never operating off different information.

“Compliance is only the by-product of accounting. The financial insights are the product. That's our focus.”

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Every business's exact rate depends on transaction volume and complexity — the numbers below are a starting point to help you find the right fit before we talk specifics.

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One founder's idea, grown into a full team dedicated to making your money make sense.

Trusted by businesses built on hard work.

From tradespeople to realtors to franchise operators — TruNorth works with owners who need a financial team that keeps pace with them.

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The Ledger

Straight answers on tax, cash flow, and running a business smarter — from Josh's desk to yours. New entries go up here, written by Josh, published the moment they're ready.

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Tell us a bit about your business and we will follow up — usually within one business day.

Tax Season in Canada: Common Mistakes That Could Cost You Money

Published March 12, 2026

When tax season rolls around, many Canadians open their favorite tax software, upload their slips, click through a few prompts, and hit submit. It feels simple enough — but personal taxes are rarely just a data-entry exercise.

The reality is that tax software assumes you already understand the rules. If you don’t, it’s easy to miss deductions, overlook credits, or make mistakes that could cost you money. That’s where working with a tax professional can make a real difference.

And here’s the reality. It’s much more likely that you’ll miss more in taxes than the fee it would cost to get it done by someone who knows what they are doing. You are relying on the software, but not understanding what its actually doing.

That said, if you are going it alone, here are a few areas where Canadians often trip up.

Carryforward Amounts People Forget

A common issue is missing carryforward amounts from previous years. Certain deductions and credits in Canada can be saved and used later, but many taxpayers forget about them when filing on their own, or claim them in years where it doesn’t benefit them maximally.

Charitable donations are a good example. Donations can be carried forward for up to five years. The same concept can apply to items like unused tuition amounts or capital losses. A tax professional will typically review prior-year notices of assessment to make sure these valuable credits aren’t accidentally left behind.

Software "Optimizations" That Suck

Oh yes, the software "says" its optimizing, but is it really? How do you know? While some tax programs attempt to "optimize" calculations automatically, they often rely on limited inputs or simple assumptions. A professional can review the bigger picture — including family income levels and prior-year claims — to ensure these credits are claimed in the most beneficial way.

RRSP Contributions: It’s Not Just About Contributing

Most people know that contributing to an RRSP can lower their taxable income. What many don’t realize is that when you claim the deduction can matter just as much as the contribution itself.

For example, if your income is expected to increase in the next year or two, it may make sense to contribute now but delay claiming the deduction until you’re in a higher tax bracket. This type of planning can significantly increase the tax benefit — something tax software rarely explains clearly.

Overlooking Credits You’re Eligible For

Tax credits are another area where people often leave money on the table. Medical expenses, charitable donations, tuition transfers, and caregiver credits are just a few examples that can easily be missed or claimed incorrectly.

A tax professional knows where these opportunities typically appear and can help ensure the right expenses are properly claimed.

Side Income and Freelance Work

More Canadians are earning extra income through freelance work, online platforms, or small side businesses. The problem? Many aren’t sure what expenses they’re allowed to deduct.

Home office costs, business equipment, vehicle use, and professional fees may all be partially deductible — but only when reported correctly. Getting this wrong can either reduce your refund or raise questions later.

Why Professional Help Can Pay Off

Tax software can be a helpful tool, but it still relies on the user to know what questions to ask and which options apply. When your finances involve multiple income sources, family considerations, or planning decisions, experience matters.

Working with a tax professional can help you avoid common mistakes, uncover valuable deductions, and feel confident that your taxes are done right — while keeping more of your hard-earned money where it belongs.

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T5 vs T4: What Canadian Business Owners Need to Know

Published February 18, 2026

As tax season approaches, many business owners ask us the same question: What’s the difference between a T5 and a T4 — and which one do I need to issue? Understanding this distinction is important, especially if you pay yourself or other shareholders from your corporation.

T5 vs T4: What’s the Difference?

A T4 slip reports employment income. If someone is an employee earning salary, wages, bonuses, or taxable benefits, a T4 must be issued. Payroll deductions such as CPP, EI, and income tax are withheld and remitted throughout the year.

A T5 slip, on the other hand, reports investment income, most commonly dividends paid to shareholders. If your corporation pays dividends to you or another shareholder, those payments are not considered salary — meaning no payroll deductions apply — and they must be reported on a T5 instead.

What Are the Tax Implications?

The biggest difference comes down to how income is taxed. Salary reported on a T4 is fully taxable as employment income and generates RRSP contribution room. Dividends reported on a T5 receive dividend tax credits, which can reduce personal tax owing, but they do not create RRSP room or pensionable earnings.

Choosing between salary and dividends often forms part of a broader tax planning strategy.

Will I Pay Less Taxes with a T5 or a T4?

The short answer: Not really, the total tax burden is about the same.

The long answer: A key concept when choosing between salary (T4) and dividends (T5) is integration.

Canada’s tax system is designed so that income earned through a corporation results in roughly equivalent overall taxation. This prevents business owners from gaining disproportionate advantage simply by operating through a corporation.

When you pay salary, the corporation deducts the expense, reducing corporate tax, and the individual pays personal tax on employment income.

When you pay dividends, the corporation first pays corporate tax. The shareholder then pays personal tax, but receives a dividend tax credit to account for tax already paid by the company and reduce double taxation.

In theory, both methods should produce similar overall taxes — that’s integration. In practice, differences in income level, provincial rates, CPP contributions, and retirement planning mean one option may work better depending on your goals.

For most owner-managers, the optimal strategy is usually a balanced mix of salary and dividends, not strictly one or the other. You really should talk with your accountant to determine what is best for your situation.

When Does a T5 Need to Be Filed?

T5 slips must be filed with the Canada Revenue Agency and provided to shareholders by the last day of February following the calendar year in which dividends were paid.

If your corporation has shareholders receiving dividends — even if it’s just you — issuing a T5 is required to stay compliant and avoid penalties.

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You’ve Heard of T4s… But What About T4As?

Published February 12, 2026

Most business owners know about T4 slips for employees. But T4As? That’s where things often get overlooked.

If you’re paying people by e-transfer, cheque, or direct deposit — and claiming those payments as a business expense — you may have a T4A filing requirement and not even realize it.

As we head into tax season, here’s what you need to know about T4A slips, who needs to issue them, and what happens if you don’t.

What Is a T4A?

A T4A (Statement of Pension, Retirement, Annuity, and Other Income) is an information slip filed with the Canada Revenue Agency (CRA) to report certain types of income — most commonly payments to independent contractors and service providers.

Unlike a T4 (which is for employees), a T4A is generally used when you pay someone who is not on payroll.

When Do You Need to Issue a T4A?

You may need to issue a T4A if your business paid:

• Independent contractors
• Freelancers
• Consultants
• Sole proprietors providing services
• Professionals (bookkeepers, marketers, IT consultants, etc.)

If you are deducting the payment as a business expense and the person is not an employee, that’s your first signal to ask: Do I need to issue a T4A?

In many cases, if total payments for services are $500 or more in the calendar year, a T4A is required. Even if no tax was withheld.

"But I Just Paid Them by E-Transfer…"

This is one of the most common misunderstandings.

It doesn’t matter if you paid by:

• E-transfer
• Cheque
• Cash
• Direct deposit

And it doesn’t matter that you recorded it properly in your accounting software.

A journal entry or bookkeeping record is not a substitute for filing a T4A.

The T4A is a formal information return. It must be:

1. Issued to the contractor
2. Filed with the CRA

The CRA uses this slip to match the income reported by the contractor on their personal tax return. If you deducted the expense but did not issue a required slip, it can create discrepancies.

When Is the Deadline?

T4A slips must be issued to recipients and filed with the CRA by the last day of February following the calendar year in which the payments were made.

If the deadline falls on a weekend, it moves to the next business day.

Both the contractor and the CRA must receive their copies by that date.

What Happens If You Don’t File?

Failing to issue required T4A slips can result in:

• Late-filing penalties starting at $100, increasing depending on the number of slips
• Additional penalties for incorrect or missing information
• Increased likelihood of CRA review
• Questions about whether expenses are properly supported

If you are claiming contractor expenses but not issuing required slips, that can raise red flags.

The Bottom Line

If you pay people who are not employees — and you claim those payments as business expenses — you should review whether T4As are required.

T4As are not just paperwork. They are a compliance requirement with the CRA, and ignoring them can cost you.

Getting organized early, tracking contractor totals throughout the year, and confirming filing requirements before February can save you penalties and stress.

If you’re unsure whether your business needs to issue T4As this year, it’s always better to check before the deadline than after it.

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Too Many Business Owners Don’t Actually Know If They’re Making Money

Published February 7, 2026

This is something I see constantly.

Most business owners think they’re making money—but they don’t actually know. It doesn’t mean they aren’t, it just means they don’t know.

Money is coming in. Sales look decent. The bank balance doesn’t seem alarming.

From the outside, the business appears to be doing fine. But internally, there’s stress. Cash feels tight. Taxes feel unpredictable. And there’s a lingering sense that there should be more left over than there is.

That disconnect almost always comes down to one thing: they don’t have a clear understanding of their numbers.

Revenue Creates False Confidence

One of the biggest mistakes I see is confusing revenue with profit.

Revenue is just money coming in. It doesn’t tell you what it cost to earn that money, how much is owed in taxes, or whether the business is actually sustainable. I’ve worked with businesses that had strong top-line numbers and still couldn’t pay themselves consistently.

I’ve also seen smaller businesses with much lower revenue that were far healthier financially—because they understood their margins and controlled their costs.

Sales feels good. Profit is what actually matters. (Side note: Business owners love to ’label’ their business by the top line. "It’s a 2-Million-Dollar Company". But frankly, your sales don’t interest a potential buyer. Your profit does.)

Being Busy Doesn’t Mean You’re Winning

Here’s another pattern that plagues small business. You are incredibly busy and barely profitable; and because you are so busy, you don’t take the time to review (or request) good financials.

Unfortunately, full calendars and long hours can distract you from a lot of problems: underpricing, inefficient processes, and work that simply isn’t worth what it pays.

If you’re always working and never feeling financially ahead, that’s not success. Being willing to outwork your competition is a must, but don’t feel that the struggle will autonomously produce success. It doesn’t.

Your Bank Account Is Not Telling You the Truth

Making financial decisions based solely on bank balance is bad business. I said what I said.

Checking your bank balance is not financial management. Your bank account doesn’t tell you what money is already spoken for, the HST or income tax you owe, or whether this month was actually profitable. It only tells you what hasn’t left yet. That money might not even be yours.

That’s how people get blindsided—by tax bills, cash shortages, or decisions they thought they could afford.

The problem isn’t sudden. It just wasn’t being tracked.

Knowing Your Numbers Changes How You Operate

You don’t need to be an accountant to run a business—but you do need answers.

You should be able to say, with confidence:

• whether you’re profitable
• what actually makes you money (and what doesn’t)
• how much you can safely pay yourself
• and whether growth is affordable or risky

Once you have that clarity, decisions get easier. Stress goes down. You stop guessing.

Here’s the reality: if you don’t understand your financials, you’re not really running your business—you’re reacting to it.

The goal isn’t just to make money. It’s to know that you are.

Our work is focused on giving business owners clear, accurate financials so they actually know where they stand—what’s working, what isn’t, and what they can afford to do next.

No guesswork.

No panic.

No surprises.

You’ve got this. You can do it. And we are here to help!

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Using Your Corporation’s Money: What Canadian Business Owners Can — and Can’t — Do

Published January 30, 2026

If you run a corporation in Canada, it’s easy to think of the business bank account as your money. After all, you own the company.

But from the CRA’s perspective, your corporation is a separate legal entity — and how you take money out matters a lot.

Here’s what Canadian business owners need to know.

Your Corporation’s Money Isn’t Personal Cash

Even if you’re the sole shareholder, corporate funds don’t automatically belong to you. Taking money out the wrong way can lead to unexpected taxes, penalties, and CRA reassessments.

The key is using one of the CRA-approved methods.

Legitimate Ways to Take Money Out

Salary or Wages

• Deductible to the corporation
• Taxed personally
• Requires payroll remittances (CPP)

Best for predictable income and building RRSP room.

Dividends

• Paid from after-tax corporate profits
• Often taxed more efficiently than salary
• No CPP contributions

Best for flexibility and tax planning.

To learn more about whether paying yourself a salary or a dividend is best, see our blog post on the subject.

Shareholder Loans (With Care)

• Allowed if repaid within CRA deadlines
• Must be tracked properly
• Miss the deadline and it may become taxable income

What Not to Do

• Pay personal expenses directly from the corporation
• Treat the business account like a personal ATM
• Take money without recording it as salary, dividends, or a loan

These are common CRA red flags.

Why This Matters

The way you access corporate funds affects:

• Your personal tax bill
• CPP obligations
• CRA audit risk

Often, a combination of salary and dividends works best — but the right mix depends on your goals and cash flow.

Bottom Line

Your corporation’s money is powerful, but it has rules.

Taking money out the right way helps you stay compliant, minimize tax, and avoid costly surprises. If you’re unsure which method makes sense for you, getting advice before you move money can save you far more in the long run.

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Why 2026 Is the Perfect Time to Switch to Payroll Software

Published January 23, 2026

Ever spend an hour trying to recreate a single pay stub for an employee? Or dig through bank records trying to remember which payroll remittances were already paid? Or stop what you’re doing—again—to answer questions about deductions you have to manually look up?

Add paper cheques to the mix, and it gets even worse: taking time to write each one, double-checking the numbers, worrying about mistakes, and then waiting to see when employees actually deposit them. When cheques sit uncashed, cash flow becomes harder to track—and payroll starts to feel more like detective work than a process.

If you aren’t using software in 2026, you should. Why?

1) Less Work, Fewer Headaches

Today’s payroll software automates the most time-consuming tasks:

• Electronic pay stubs for employees
• Faster, more accurate payroll runs
• No more manual calculations or corrections
• Automated payroll for salary employees

Employees can access their own pay information anytime—no more requests or delays.

2) Smarter Deductions and Better Cash Flow

Instead of facing a large monthly remittance on the 15th, payroll deductions can be automatically submitted with each pay run. This keeps you compliant, improves cash flow, and removes the risk of missed payments.

3) Stay Compliant and Avoid Penalties

Automated T4 preparation and filing helps ensure everything is submitted on time, avoiding costly penalties and late fees. Year-end no longer has to be stressful.

4) A Better Experience for Everyone

Modern platforms also simplify:

• Automated ROE filings
• Easy hiring and terminations
• Clean, intuitive employee portals

Payroll becomes smoother for your team and easier for your employees.

Start 2026 the Right Way

Switching payroll software is a simple change that delivers long-term benefits.

Start fresh. Reduce errors. Switch today and make payroll easier in 2026.

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