P&L CPA |
Your Accountant in Burnaby
P&L CPA is a community based accounting practice located in Burnaby, BC. The practice focuses on helping small business owners with their corporate and personal tax matters. The practice also provides compilation, personal tax, and bookkeeping services. It is owned and operated by Paul Lee, CPA, CA, CFP, BBA.
As your Chartered Accountant and Certified Financial Planner, P&L CPA is here to ensure that all of your financial decisions are made carefully with your best interest in mind.
Send your trial balance and get your year-end corporate tax balance calculated for you. Leverage tax planning services to save money and reduce anxiety. See how a CPA can help with your small business tax needs.
Combine corporate tax services with a compilation report and a set of financials for your creditors and stakeholders. See how a former Controller with deep understanding of accounting standards and financial reporting can help.
Helping small businesses set up their books, reconcile their bank accounts, process payroll, file GST, and stay focused on their mission. See how a QuickBooks Online Certified ProAdvisor and a Xero-Certified Advisor can help with bookkeeping services.
Helping small business owners maximize their refunds and lower their tax bill. Combine corporate and personal tax services for an integrated tax planning approach.
* Only accepting T1 clients who are private corporation shareholders, sole proprietors, or rental owners.
PAUL LEE, CPA, CA, CFP, BBA
Paul Lee is a Chartered Accountant and Certified Financial Planner with over 13 years of experience in public practice and industry. He has a passion for helping people achieve their financial goals. With his VP Finance, Director of Finance, Controller, and Investment Advisor background, he brings a unique set of skills to help people achieve both their business and personal financial goals. He articled at BDO Canada LLP. He founded P&L CPA in April 2020 and has been working as an accountant in Burnaby since that time.
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"I met Paul for a consultation, and he was courteous, friendly, and professional. He helped me identify my accounting needs and was able to provide solutions geared towards the best outcome. I would highly recommend him for his service."
Kim Ngo, BC
It has been really great working with Paul, so happy we have found him for our Accounting needs! We're a small business with lots of questions and Paul has been a great resource for our corporate year-end and finance processes. He's knowledgeable, reliable, and great to talk to. We especially appreciate the quick turnaround times to get things done. Would highly recommend Paul for your corporate tax and accounting support.
Sharon Brown-John, BC
"I had my 2021 tax return prepared by Paul. I had a few different issues with my taxes including rental properties and capital gains but he made it very easy. Communication was great and service was quick. I would recommend Paul Lee for his excellent accounting services."
Maria P, BC
Disclaimer: This FAQ section is for general purposes only. Concepts have been over simplified. Readers should consult with a CPA to disclose your specific facts and circumstances prior to implementing any of the items discussed.
Q:I've been hired as an Independent Contractor to provide services for a business. Should I incorporate?
A: If you have only 1 client, you should not incorporate. There's a concept called Personal Service Business (PSB) which the general public is unaware of. Essentially, if you work like an employee (e.g. 40 hours per week, schedule is set by the client, your laptop is provided by the client, you have no financial risk, etc.) the government wants to tax you like an employee. A corporation that is considered to be a PSB will be disallowed most deductions except the salaries and wages paid to the sole shareholder-employee. The Corporation's adjusted taxable income will be taxed at roughly 45% in B.C., then you'll be taxed again when you pay yourself personally, resulting in double taxation. To avoid double taxation, it's crucial that you attain multiple clients to show to the government that your corporation is a true business. Alternatively, you can pay out all revenue as a salary to yourself.
Q: What are the tax advantages of incorporating?
A: The biggest tax advantage of incorporating a small business is tax deferral. Most Canadian Controlled Private Corporations (CCPCs) get taxed only 11% in B.C. for up to $500,000 of taxable active income. Since the personal tax rate is much higher for individuals who earn $500,000, you can leave the excess profits in the corporation and time when and how much you pay yourself. The corporation essentially acts like an RRSP, holding tax deferred funds. This could save you a lot of tax in the long run.
Q: What are the tax disadvantages of incorporating?
A: For many small business owners just starting out, their businesses typically incur losses for the first year or two. They'll typically have another job to cover their living expenses and support their new business. In such a scenario, it's usually recommended that you operate as a sole proprietor since you can deduct the business losses against your employment income. If you incorporate, you cannot deduct the corporation's net losses against your personal income.
Q: What can I deduct as business expenses?
A: Generally speaking, you can deduct any reasonable expense incurred to earn that business revenue. You cannot deduct personal expenses. If you incur expenses that mix both personal and business, for example, home office expenses and motor vehicle expenses, you must allocate the portion only related to business. In addition, to claim home office expenses, your home must be your principal office (i.e. you don't have another office) or you must regularly meet clients at your home.
Q: Do I need to register for GST?
A: Generally speaking, if your business generates less than $30,000 of revenue from taxable supplies in the last 4 quarters or in the current quarter, you're considered a tax exempt small supplier. Therefore, you do not need to register for GST. If your business generates more than $30,000 of revenue from taxable supplies in the last 4 consecutive quarters or in the current quarter, you're liable for GST.
See how P&L CPA's accounting expertise and bookkeeping services can save you time, money, and frustration with managing your finances.
P&L CPA is a remote office. Clients may drop off documents with the receptionist at the Regus address below. If you would like to meet in-person at the Regus location, please book an appointment. Video conference calls via Google Meets are also available.
2025 Willingdon Ave 900 Burnaby, BC V5C 0J3