Accountant fee for corporate tax return: what does it cost for small businesses in Canada?

As a Chartered Professional Accountant (CPA), I regularly meet business owners looking to understand the cost of tax preparation and asking a straightforward yet essential question: “What is the cost of an accountant for small business tax returns in Canada?”

The answer isn’t always simple. It depends on several factors: the type of business you run, the complexity of the tax situation, the quality of your bookkeeping, and of course, the tax accountant or firm you choose to work with. And let’s not forget, price matters, but so do accuracy, compliance with tax regulations, and the ability to optimize your tax position.

In this article, we’ll walk you through the average fees for various types of accounting services, the key factors that can affect how much you’ll pay, and the additional services accountants often provide — far beyond just filing your tax returns. Whether you’re an incorporated freelancer or running a small or medium-sized business, this guide is here to help you make an informed, cost-effective decision.

How much does an accountant charge for a corporate tax preparation?

There’s no universal price list when it comes to filing a corporate tax return. The cost of hiring a tax professional depends on many factors, including your business structure, the complexity of the work, the specific services required, and the type of accountant you choose. The fee may also vary based on the complexity of your file and the type of tax return involved — whether it’s a straightforward tax filing or a complex tax situation involving multiple shareholders, investments, or international income.

Here in Quebec, the average tax preparation fees for corporate tax services are as follows:

These average rates may also include, or be subject to, additional fees. For example, bookkeeping, preparing slips like T4 or T5, applying specific deductions and credits, or supporting you during an audit can all impact the final invoice. Ultimately, the total cost will depend on the complexity of your file and how organized your documents are when you hand them over.

What services can an accountant offer your small business?

An accountant does much more than just fill out tax forms. For incorporated businesses and entrepreneurs across Canada, working with a qualified professional can reshape how you manage your finances, reduce tax liabilities, and ensure long-term compliance. Beyond simply filing a return, here’s what a Chartered Professional Accountant (CPA), especially one registered with the Ordre des CPA du Québec or another provincial body, can do for your company:

• Prepare and file your T2 and CO-17 corporate tax returns: in full compliance with federal and provincial requirements. This includes handling all required forms and supporting schedules, even when things get complex.
• Produce complete financial statements: including balance sheets, income statements, and documents like the TP-64.3 slip, often required when applying for financing or in the case of a tax reassessment.
• Provide personalized tax advice: helping you make the most of all available deductions and credits (RRSPs, childcare expenses, business-related investments, tuition fees, and more).
• Optimize your compensation strategy: helping you choose between salary and dividends based on your business structure, income level, and the impact on your personal finances.
• Handle your bookkeeping and day-to-day accounting: including data entry, bank reconciliation, and GST/QST tracking. These services are typically offered as part of a monthly package or at an hourly rate.
• Support you during audits or tax reviews: a qualified preparer can act on your behalf if you’re contacted by the Canada Revenue Agency/Revenu Québec for additional information or verification.
• Assist with software use: guiding you through accounting or tax filing platforms if you prefer to handle parts of the return yourself.

These accounting services allow you not only to file your returns without errors, but also to take advantage of all allowable deductions and credits, while you focus on what really matters: growing your business.

What factors influence the price of an accountant?

The cost in Canada for corporate tax preparation services can vary significantly depending on several criteria. Whether you're preparing corporate income tax, a basic personal tax return, or a more complex file, it's important to understand the factors influencing tax service pricing before selecting a tax professional.

Here are the main factors that can influence how much you’ll be charged:

1. The complexity of your tax situation

The more complex your business structure, the more time and expertise your accountant will need to complete the return accurately. A company with multiple shareholders, passive income, investments, or cross-border activities will naturally require deeper analysis. The total fee will reflect the level of detail and risk involved.

2. The quality of your bookkeeping and documents
 

Organized, accurate records can make your accountant’s job much easier — and faster. If your documents are complete, digital, and well-structured, it reduces the time spent on corrections or follow-ups. On the other hand, disorganized files or missing financial data can lead to additional fees or hourly billing.

3. Urgent deadlines

If you reach out to your accountant just a few days before your filing deadline, they may need to prioritize your file, which often comes with a rush fee or higher hourly rate. To avoid paying extra, it’s always best to start the process shortly after your fiscal year ends.

4. Services included in your mandate

Are you only looking for someone to file your T2 return? Or do you also need financial statements, help with deductions, get advice on depreciating an asset or tax planning support? The range of services you require will influence the final quote. Many accountants offer modular pricing based on your exact needs.

5. Type of professional

A CPA, especially one registered with the Ordre des CPA du Québec, brings a recognized level of expertise and responsibility. Their rates may be higher than those of a technician or a generalist, but they also offer broader tax knowledge, better compliance, and support in case of an audit or reassessment.

Is there a more economical solution than an accounting firm?

Yes! And that’s great news for incorporated small businesses and self-employed professionals who want to stay compliant without overpaying. Today, there are more options than ever for filing your business tax return efficiently, without having to rely on a traditional accounting firm with higher fees.

Here are two common alternatives:

• Tax software: tools offer a lower-cost, do-it-yourself option, usually priced between $150 and $300. If your situation is straightforward, and you’re comfortable navigating tax forms, this can be a viable route. But be cautious: these tools don’t offer any guidance or validation. If you miss a credit or make a mistake, it could cost you more in the long run.
• Hybrid platforms like T2inc.ca: this is where our model stands out. At T2inc.ca, we combine the efficiency of automated software with the personalized support of real tax professionals. You get the best of both worlds: a streamlined online experience and the peace of mind that comes from working with experts — all at a competitive rate, without paying for the overhead of a large firm.

Why invest in a qualified accountant?

With so many options available to file a corporate tax return, it’s tempting to go the DIY route or choose the least expensive solution. But when your business is incorporated, or your tax situation gets even slightly more complex, working with an accounting firm is often not just a good idea, but a smart investment.

A qualified accountant brings more to the table than data entry and form-filling. They take the time to understand your tax situation, identify deductions and credits you may be eligible for, and help you make the most of legal tax strategies to reduce your payable amount. In many cases, the savings can far exceed their fees.

Here’s why the cost of a CPA is not only justified, but often strategic:

• Avoid costly mistakes: Errors like omitting a slip, entering incorrect figures, or applying deductions improperly can lead to audits, reassessments, or even penalties. A CPA helps you avoid these risks.
• Maximize available tax measures: Whether it’s RRSP contributions, investment expenses, tuition, or childcare costs — a qualified accountant knows how to help you claim every dollar you're entitled to.
• Support during audits or tax reviews: If the CRA or Revenu Québec audits your file, a CPA can explain and justify your tax positions, helping you stay calm and protected throughout the process.
• Strategic financial guidance: A CPA can advise on key decisions such as incorporation, remuneration strategy (salary vs. dividends), managing annual income, and depreciation of business assets.

In short, if your situation involves more than a basic return, or if you want clear advice on optimizing your business or personal finances, hiring a CPA isn’t just an expense — it’s a strategic move that can protect and grow your bottom line.

Choosing your company accountant: compare prices, but also think about value

Comparing accountant fees is smart — but price alone shouldn’t drive your decision. It’s equally important to consider the expertise, the quality of the service, and the results you’ll get. A well-prepared, optimized, and compliant tax return not only saves you time — it can reduce how much you owe or even boost your refund.

Need a fair price for your T2 and CO-17 returns? At T2inc.ca, we work with you from start to finish, whether you need a straightforward filing or support with more complex matters. Get a free, no-obligation estimate tailored to your business today.

Frequently asked questions (FAQ)

💬 What is the average cost of a T2 tax return?

For a small, incorporated business with a simple structure, fees typically range from $375 to $750. If your file requires financial statements or additional services, the cost may go up. At T2inc.ca, we provide a fair and transparent price that reflects the complexity of your situation.

💬 Are accountant fees tax deductible?

Yes. Accounting fees, including tax preparation, bookkeeping, and consulting, are generally deductible as business expenses. That means you can subtract them from your taxable income, helping to reduce your overall tax bill.

💬 Is tax software a better option?

Tax software may be suitable for some self-employed people, but beware: these tools do not replace the expertise of a CPA. They don't analyze the intricacies of your situation, nor the complex deductions or specific credits to which you may be entitled.

💬 How can I get a free estimate for my corporate tax return?

At T2inc.ca, it’s easy. Just send us your company documents using our secure upload system. Our team of professionals will analyze your file and provide you with a clear, personalized quote, free and with no obligation.