Summer often brings fresh motivation and new beginnings, and for many Canadians, that means finally launching that long-considered side hustle, freelance gig, or full-scale business. If you’ve recently started a business or are planning to launch one before fall, first of all, congratulations. But before you dive too deep, let’s talk financial foundations.
Whether you’re selling services, products, or both, getting your numbers right early on will save you time, money, and stress down the road. Here’s what you need to know financially when starting a business this summer.
Structure Matters, Choose the Right Business Type
One of the first big decisions you’ll make is how to structure your business. In Canada, your main options are:
Sole Proprietorship, which is the easiest to set up, comes with fewer administrative requirements, but offers no legal separation between personal and business finances.
Partnership, which involves shared ownership and shared responsibility, ideal if you’re working with one or more people.
Incorporation, which is more complex and expensive upfront, but offers legal protection, tax deferral opportunities, and added credibility.
If you’re not sure what’s right for you, this is where professional advice becomes important. At ME Consulting Inc., we help clients evaluate the best structure based on their goals, industry, and risk tolerance.
Register for the Right Accounts, At the Right Time
You might not need to register for everything immediately, but knowing when you do is essential.
A Business Number (BN) is required for things like GST or HST, payroll, or importing and exporting.
A GST or HST account is needed once you hit $30,000 in revenue over four consecutive calendar quarters.
A Payroll account is necessary as soon as you hire employees.
Provincial licenses or permits depend on your business type and location.
Waiting too long can lead to missed obligations or CRA penalties. We can help you set these up or review what you already have to make sure you’re fully covered.
Separate Your Finances Right From the Start
This is a must. Keep your personal and business finances completely separate. Open a dedicated business bank account. Use a business credit card, or a separate personal card used strictly for business. Track all income and expenses, even if they’re small or infrequent at first. This makes bookkeeping much easier, gives you clarity on your finances, and avoids major headaches during tax season.
Set Up a Bookkeeping System Before Things Get Busy
Even if you’re only making a few sales a week, having a system in place will help you stay organized and CRA-compliant. A bookkeeping system lets you track cash flow, calculate profit, and prepare for growth or funding. Whether you prefer spreadsheets, QuickBooks Online, or working directly with our team, don’t wait until year-end to start. Clean, consistent records save you time, money, and stress.
Understand Your Tax Obligations as a Business Owner
New business owners are often surprised by how different taxes work when you’re self-employed. You may not have tax withheld from your income, so you’ll likely owe at year-end. You may need to pay quarterly tax instalments to the CRA, depending on your earnings. You’ll need to track all eligible business expenses to reduce your tax bill, including meals, mileage, supplies, and more. At ME Consulting Inc., we help new business owners stay ahead of their tax obligations with proactive support, not just during tax season but all year long.
Build a Financial Plan, Not Just a Business Idea
A solid financial plan is key to long-term success. Think about:
How much cash you need to operate each month.
When you expect to become profitable.
How much you’ll pay yourself, and how much you’ll reinvest.
What growth looks like over the next 6 to 12 months.
Even a simple plan helps you make better decisions, and it shows lenders or investors that you’re serious about the business side of things.
Final Thoughts
Starting a business is exciting, but it also comes with real financial responsibility. Don’t wait until year-end to realize you’ve missed deductions, misfiled a CRA form, or need to clean up six months of records. Starting strong sets the tone for everything that follows.
At ME Consulting Inc., we work with new and growing businesses across Alberta to help build a strong financial foundation, from registration and setup to bookkeeping and tax planning.
Thinking about starting your business this summer?
Let’s book a quick consultation and make sure you’re set up properly from day one. Reach out to our team and take the guesswork out of your finances.
