Financial Planning for Contractors and Trades · Ottawa
Plan for the slow season and life beyond the tools.
Project income has to cover the business, your household and the future. Build a plan for uneven payments, equipment costs and the risk of being unable to work.
Give project income a purpose
Plan the money before committing to the next job.
01
Operating cash and taxes
Separate materials, payroll, subcontractors, vehicles and tax/GST/HST reserves from money available to spend.
02
Household income and reserves
Set a personal draw and keep household emergency savings separate from business reserves for delayed payments and slow periods.
03
Equipment and future savings
Plan replacements and financing against cash reserves and borrowing capacity, while building long-term investments outside the tools and contracts.
Protect the earning ability
Your income can stop while expenses continue.
Separate household and business protection
Disability cover may replace part of eligible personal income, while overhead cover addresses eligible operating costs. Life, critical illness and health or dental coverage serve other needs. Check the policy conditions, benefit duration and existing protection.
Plan for the team and the eventual handover
Key-person insurance and buy-sell funding may matter when an essential employee or another owner is involved. Build transferable business value and a succession plan, alongside personal and corporate savings. Retirement should not rely only on the future sale of the company.
For self-employed tradespeople and incorporated contractors in construction, electrical, plumbing, HVAC, roofing, renovation, landscaping and related fields.
Questions before you decide
Look closely at the details.
Do I need a financial plan if my accountant already handles my taxes?
Your accountant plays an important role in tax reporting and business decisions. Financial planning connects those decisions with your insurance, investments, retirement, family needs and succession objectives.
Should I invest personally or through my corporation?
The appropriate approach depends on your corporate cash needs, personal income, tax position and long-term objectives. This decision should be reviewed with your financial professional and accountant.
Review with Centerpointe
Bring your project income and household priorities.
We’ll review cash flow, reserves, debt and existing protection, then coordinate a practical plan with your accountant and lawyer. Adjust it as your income, equipment, team, family and plans for stepping back change.
Financial Planning for Ottawa Contractors & Trades Areas We Serve
Financial Planning for Ottawa Contractors & Trades guidance in Ottawa and neighbouring Eastern Ontario communities.
Financial planning, insurance, investment, tax and legal needs vary by individual and business. Information on this page is general and does not constitute tax, legal or investment advice. Product availability, eligibility and coverage are subject to applicable contracts, licensing requirements and jurisdictional rules. Consult appropriately qualified professionals before making financial, tax or legal decisions.