About UsPricingReviewsContact UsClient Portal loginBook a Free 30-Min Call
About UsPricingReviewsContact UsClient Portal loginBook a Free 30-Min Call
Services
Get caught up
Catch-Up BookkeepingFrom $1,800Books & payroll
BookkeepingFrom $350/monthPayrollGet a quoteSR&ED ClaimsEnd-to-end SR&ED claims, quoted after consultationSR&ED for Software CompaniesQuoted after consultationSR&ED-Ready BookkeepingBooks + T2 for SR&ED claimsTax filing
Corporate Tax (T2)From $800 · nil T2 from $249GST/HST Filing$150 per returnPersonal Tax (T1)From $110 · students from $49Sole Proprietor Tax (T1 + T2125)From $300Start & grow
IncorporationFrom $499 + gov feesVirtual CFOFrom $2,500/monthAI Consulting & AutomationFor small businessesIndustries
Construction & tradesConsultantsTech startupsReal estateHealthcareSee all industries →More
PricingService areasAll services →Accounting and Tax for Ontario HVAC Companies
From service vans and parts inventory to maintenance plans and rebates, a CPA-led team that keeps your books as organized as your dispatch board.
24/7 receptionist, a real person answers.
- Every return is reviewed by a CPA
- No surprise bills
- Reply within one business day
- 24/7 receptionist: a real person answers
- QuickBooks Online, Xero and Dext
- Rated 5.0 stars from 29 Google reviews (read our reviews)
T-Ledgers is a CPA-led accounting firm working with Ontario heating, cooling, ventilation and refrigeration contractors, from one-truck operators to growing shops with installers, service techs and a dispatcher. Wajahat Ajmal, CPA, FCCA, has been practising since 2020. We handle bookkeeping, HST, payroll and corporate and personal tax, and every return is reviewed by a CPA.
HVAC is two businesses in one: installs that behave like construction projects and service calls that behave like retail. Add maintenance plans paid in advance, rebate programs that change every year and a van full of parts, and generic books quickly stop telling you where the money is made. We set up your books so you can see the margin on each.
HVAC tax and bookkeeping issues we handle
Rules, rates and thresholds change. We confirm the current figure for your situation on the call before relying on it.
Service vans and vehicle expenses
Vans and pickups are generally Class 10 (30%) for CCA. A van or pickup used more than 50% to carry goods or equipment is generally not a ‘passenger vehicle’, so the Class 10.1 cost limit doesn’t apply. A simple mileage log protects the claim if the CRA asks. If a tech takes a van home, there can be a taxable standby-charge benefit unless the van qualifies as a non-passenger vehicle ; we help you set the policy and report benefits correctly. The reinstated Accelerated Investment Incentive (enacted March 2026) generally gives an enhanced first-year claim on eligible vans and equipment available for use before 2030.
Law: Income Tax Act s.248(1) (“automobile”, “passenger vehicle”); Income Tax Act s.13(7)(g) (passenger vehicle cost limit); Income Tax Act s.6(1)(e) and 6(2) (standby charge); Income Tax Regulations s.1100(1) and Schedule II (CCA classes).
Parts and equipment inventory
Furnaces, condensers, heat pumps and parts on the shelf or in the vans at year-end are inventory, not expenses. For tax, inventory is generally valued at the lower of cost and fair market value. We help you set a year-end count routine that’s realistic for a busy shop, and link parts to jobs so your gross margin is real.
Install vs service margins
We set up separate revenue and cost lines for new installs, replacements, service calls and maintenance plans. That’s how you find out whether the busy install season is actually paying for the slow months.
Maintenance plans and prepaid work
When customers prepay annual maintenance plans, part of that money may relate to work you haven’t done yet. A reserve for unearned amounts may be available for services to be rendered after year-end. We set up deferred revenue properly and release it as visits are completed.
Law: Income Tax Act s.20(1)(m) (reserve for unearned amounts); Income Tax Act s.12(1)(b) (amounts receivable).
Warranties and callbacks
Manufacturer warranties, your own labour warranties and callbacks all cost money. For tax, a general reserve for future warranty costs generally isn’t deductible ; actual costs are deducted when incurred. We track warranty work separately so you can price it into your installs.
Rebates and incentive programs
Utility, manufacturer and government rebates for heat pumps and high-efficiency equipment are paid in different ways: to the homeowner, to you, or credited against the invoice. How they’re recorded can affect your revenue and the HST you collect, and the right treatment depends on how each program works, so we review them case by case. Manufacturer volume rebates and spiffs paid to your company are generally income or a reduction of cost. We record each program the way it actually works.
Law: Income Tax Act s.12(1)(x) (inducements and assistance); Excise Tax Act s.165 (GST/HST imposed).
HST on residential and commercial work
Ontario HST is 13%. HST is charged on the full taxable price, and how a point-of-sale rebate affects the HST depends on the program. Claiming every input tax credit on parts, fuel and tools, with supplier invoices to back them up, adds up over a year.
WSIB and T5018 slips
HVAC installation is often classified as construction in Ontario for WSIB purposes ; we’ll check your classification. If construction activities are more than 50% of your business income, you also report payments to subcontractors on T5018 slips, such as sheet-metal, electrical or gas-line subs.
Law: Workplace Safety and Insurance Act, 1997 s.12.2(1) (mandatory construction coverage); Income Tax Regulations s.238 (T5018 construction payments).
Techs, apprentices, overtime and seasonal payroll
Peak seasons mean overtime, tool allowances and sometimes temporary staff. Ontario Employer Health Tax generally applies only once Ontario payroll is over the Employer Health Tax exemption for eligible employers (currently $1 million ; see Ontario’s EHT page). Employers of eligible apprentices in Red Seal trades may qualify for the federal Apprenticeship Job Creation Tax Credit. We keep source deductions and remittance deadlines on track and treat tool allowances and van use correctly on T4s.
Law: Employer Health Tax Act s.2.1(2) ($1,000,000 exemption for 2020 to 2028); Income Tax Act s.127(9) (“apprenticeship expenditure”); Income Tax Act s.153(1) (source deductions).
Financing, leases and fleet decisions
Customer financing programs, equipment rental (rent-to-own furnaces and water heaters) and fleet leases each have their own accounting. We record the cash flows correctly so your margin and HST are right.
Law: Income Tax Act s.18(1)(a) (expenses to earn income); Income Tax Act s.20(1)(a) (capital cost allowance).
Holdbacks and progress billing on install jobs
Larger installs and commercial jobs often follow Ontario’s Construction Act, with a 10% holdback and prompt payment deadlines. Holdbacks are generally income when they become receivable, and HST on the holdback is payable when it’s paid or becomes payable, whichever is first. We track holdbacks job by job.
Law: Construction Act (Ontario) s.22(1) (10% holdback); Construction Act (Ontario) s.6.4(1) (owner pays within 28 days); Income Tax Act s.12(1)(b) (amounts receivable); Excise Tax Act s.168(7) (tax on retained consideration / holdbacks).
Incorporation, salary and dividends
Many HVAC owners incorporate once profits grow. An incorporated business may get the small business rate on the first $500,000 of active business income. Salary means source deductions and T4s; dividends don’t. We plan the mix with you.
Law: Income Tax Act s.125(1) (small business deduction); Income Tax Act s.125(2) ($500,000 business limit); Income Tax Act s.153(1) (source deductions); Business Corporations Act (Ontario) s.4(1) and 5(1) (articles of incorporation).
Records the CRA expects
Keep invoices, supplier bills, vehicle logs, payroll records and inventory counts for six years. We keep your file organized so a CRA review is a quick exchange, not a scramble.
Law: Income Tax Act s.230(1) and 230(4) (books and records, six years); Excise Tax Act s.286(1) and 286(3) (records, six years); Income Tax Act s.231.1(1) (CRA audits).
Who we work with
- Residential heating and cooling contractors
- Heat pump and high-efficiency equipment installers
- Commercial HVAC, refrigeration and rooftop-unit service companies
- Sheet-metal and ductwork shops
- Plumbing and HVAC combination shops
- Owner-operators through to multi-van fleets
T-Ledgers services for HVAC contractors
- Monthly bookkeeping with install vs service reporting. From $500/month (Scale), with books closed by the 10th; quarterly bookkeeping from $350/month (Growth). Your fixed fee is confirmed after a free call (see bookkeeping).
- Catch-up bookkeeping, from $1,800 per year. We rebuild missing months and get inventory and vehicles back on the books (see catch-up bookkeeping).
- Bookkeeping Review, $195/month or $295/quarter. For owners who keep their own books and want a CPA-led check.
- GST/HST returns, $150 per return.
- Payroll for techs and installers. Quoted after a free call (see payroll services).
- Corporate (T2) and personal (T1) tax. Corporate returns quoted after a free call; personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Owner T1s can be prepared alongside the T2 (see corporate tax and personal tax).
- Virtual CFO, from $2,500/month. Seasonal cash-flow planning, pricing and fleet decisions (see Virtual CFO).
Prices are + HST/GST. Anything without a listed price is quoted after a free call, and you get the price in writing before any work starts.
How we work with HVAC companies
- Free call. We ask about your install/service mix, vans, inventory, plans and rebate programs.
- Written price. Scope and price in writing before any work starts.
- Setup. Revenue lines for installs, service and plans; tax codes; bank feeds; Dext for receipts.
- Monthly rhythm. Books closed monthly, HST filed on time, deferred revenue released as visits are done.
- Year-end. Inventory count, financial statements, T2 and T1, all reviewed by a CPA.
Why HVAC contractors choose T-Ledgers
- We understand the HVAC calendar. Busy in January and July, quieter in between. We plan your cash flow and tax instalments around the seasons, not against them.
- CPA-led, start to finish. T-Ledgers was founded by Wajahat Ajmal, CPA, FCCA. Every return is reviewed by a CPA before it's filed.
- No surprise bills. You get the scope and the price in writing before we start. If the work changes, we agree the new price with you first.
- Price matching, agreed up front. Have a comparable written quote? Bring it to us before you sign your proposal. We can only match a price when it's agreed before the proposal is signed.
- Fast, human answers. We reply within one business day, and our 24/7 receptionist means a real person answers when you call 866-254-5368.
- In person or online. Meet us in person, by appointment only, at our Etobicoke office (102-89 Skyway Ave, Etobicoke, ON M9W 6R4) or our Mississauga office (100 Matheson Blvd E #204, Mississauga, ON L4Z 3P8), or work with us entirely online.
- Your software, set up properly. We work in QuickBooks Online and Xero, and use Dext so receipts go in with a photo.
Meet your CPA
Wajahat Ajmal, CPA, FCCA, Founder, T-Ledgers Accounting. Verify my CPA Ontario membership.
I started my career as an audit associate at KPMG. Since then I’ve worked as an independent contractor for a tax filing company, preparing returns and handling client questions. I hold a BSc in Applied Accounting from Oxford Brookes University and an MSc in Professional Accountancy from University College London. I’m a Chartered Professional Accountant in Ontario and a Fellow of the ACCA. I started taking on my own clients in 2020 and founded T-Ledgers in 2023.
Every return the firm files is reviewed by a CPA. You can read more about the firm on our About page.
What our clients say
Read more on our client reviews page.
DIY vs a generalist firm vs T-Ledgers
← Swipe to compare →
| DIY | Generalist firm | T-Ledgers BEST VALUE | |
|---|---|---|---|
| Install vs service margins | Hard to separate in basic software | Often one revenue line | ✓Reported separately so you can price each |
| Rebates, maintenance plans, inventory | Often expensed or booked as cash comes in | May be fixed only at year-end | ✓Set up correctly and kept current |
| Vans and standby charges | Easy to miss | Usually year-end only | ✓Vehicle policy and logs set up from day one |
| Who checks the return before it's filed | You do | Depends on the firm and who's assigned | ✓Every return is reviewed by a CPA |
| How you're billed | Software fees plus your own time | Often hourly; the final bill can vary | ✓Scope and price in writing up front. No surprise bills |
| Getting an answer | Search online or wait on CRA phone lines | Varies by firm | ✓Reply within one business day; 24/7 receptionist, a real person answers |
| Software | Whatever you set up yourself | May ask you to switch to their system | ✓QuickBooks Online, Xero and Dext |
| Meeting face to face | Not applicable | Varies | ✓In person by appointment in Etobicoke or Mississauga, or fully online |
| Price matching | Not applicable | Rare | ✓Available if agreed before you sign your proposal |
Frequently asked questions: HVAC
It depends on who the rebate is paid to and how the program works. A rebate credited on your invoice may be treated differently from one paid directly to the homeowner, so we look at each program’s terms. Bring the program details to your free call and we’ll show you how to record it.
It can. Whether HST applies to the full price or the reduced price depends on how the rebate is structured. We check each program before you set up your invoices.
The part covering future visits is generally unearned revenue, and a tax reserve may be available for services to be performed after year-end. We release it as the work is done.
Generally yes. Rebates your company earns are income or reduce the cost of your inventory. We record them so your margins aren’t overstated.
Not if it’s used more than 50% to carry goods or equipment. In that case it’s generally not a ‘passenger vehicle’, so the Class 10.1 cost limit doesn’t apply. Keep a mileage log either way.
It can be. The rules depend on the type of vehicle and how it’s used. We’ll set up a vehicle policy and report any benefit correctly on T4s.
Through CCA. Tools under $500 each can usually go in Class 12 (100%), and most small tools aren’t subject to the half-year rule, so the full cost is usually deductible in the year you buy them; most shop equipment goes in a regular class. We keep a fixed-asset register for you.
It depends on cash flow and how long you keep them. Lease payments are generally deductible as paid, while purchases go through CCA. We compare both with your numbers.
Yes. Parts and equipment on hand at year-end are inventory and generally can’t be deducted until they’re used or sold. We’ll help you set up a count that doesn’t take a whole weekend.
By tracking revenue, parts and labour separately for each. We set up your books that way so you see the margin monthly.
Generally no. A reserve for future warranty costs generally isn’t deductible ; you deduct the actual cost when the work is done.
Yes. Van stock is your inventory until it’s used on a job. Include it in your year-end count.
Often, yes. HVAC installation is often classified as construction in Ontario, and most construction businesses need WSIB coverage. We’ll check your classification on the call.
If construction activities are more than 50% of your business income, yes, for payments to subcontractors for construction services.
Generally once your Ontario payroll is over the exemption for eligible employers, currently $1 million. See Ontario’s EHT page for current figures.
The federal Apprenticeship Job Creation Tax Credit may apply to eligible apprentices in Red Seal trades. We’ll check eligibility when we set up payroll.
GST/HST returns are $150 per return, catch-up bookkeeping starts from $1,800 per year, the Bookkeeping Review is $195/month or $295/quarter (from $450 per review for complex books) and Virtual CFO starts from $2,500/month. Payroll and corporate (T2) returns are quoted after a free call. Personal tax returns from $110 + HST/GST, with your final price confirmed after a free call. Prices are + HST/GST. You get the price in writing before any work starts.
Yes. We plan cash flow and tax instalments around winter and summer peaks, not against them.
We work in QuickBooks Online and Xero and set up your books so invoices from your dispatch or field-service app post cleanly. We’ll check your app on the call.
Yes. Our catch-up service rebuilds missing months, puts vans and inventory back on the books and files what’s overdue.
Keep your HVAC business running as smoothly as your installs
Book a free call to talk about your vans, inventory and seasonal cash flow. We reply within one business day, and our 24/7 receptionist means a real person answers at 866-254-5368.
Reviewed by Wajahat Ajmal, CPA, FCCA. Updated October 15, 2026.
Related services: Bookkeeping · Catch-up bookkeeping · Corporate taxes · Personal tax · Payroll · Virtual CFO · Contact us
Rates and thresholds change, so we link to the official sources for current figures.