Financial reporting and accounting advisory services
You trust your external auditor to deliver not only a high-quality, independent audit of your financial statements but to provide a range of support, including assessing material risks, evaluating internal controls and raising awareness around new and amended accounting standards.
Accounting Standards for Private Enterprises
Get the clear financial picture you need with the accounting standards team at Grant Thornton LLP. Our experts have extensive experience with private enterprises of all sizes in all industries, an in-depth knowledge of today’s accounting standards, and are directly involved in the standard-setting process.
International Financial Reporting Standards
Whether you are already using IFRS or considering a transition to this global framework, Grant Thornton LLP’s accounting standards team is here to help.
Accounting Standards for Not-for-Profit Organizations
From small, community organizations to large, national charities, you can count on Grant Thornton LLP’s accounting standards team for in-depth knowledge and trusted advice.
Public Sector Accounting Standards
Working for a public-sector organization comes with a unique set of requirements for accounting and financial reporting. Grant Thornton LLP’s accounting standards team has the practical, public-sector experience and in-depth knowledge you need.
Tax planning and compliance
Whether you are a private or public organization, your goal is to manage the critical aspects of tax compliance, and achieve the most effective results. At Grant Thornton, we focus on delivering relevant advice, and providing an integrated planning approach to help you fulfill compliance obligations.
Research & development, government incentives
Are you developing innovative processes or products, undertaking experimentation or solving technological problems? If so, you may qualify to claim SR&ED tax credits. This Canadian federal government initiative is designed to encourage and support innovation in Canada. Our R&D professionals are a highly-trained, diverse team of practitioners that are engineers, scientists and specialized accountants.
Keeping track of changes and developments in GST/HST, Quebec sales tax and other provincial sales taxes across Canada, can be a full-time job. The consequences for failing to adequately manage your organization’s sales tax obligations can be significant - from assessments, to forgone recoveries and cash flow implications, to customer or reputational risk.
US corporate tax
The United States has a very complex and regulated tax environment, that may undergo significant changes. Cross-border tax issues could become even more challenging for Canadian businesses looking for growth and prosperity in the biggest economy in the world.
Cross-border personal tax
In an increasingly flexible world, moving across the border may be more viable for Canadians and Americans; however, relocating may also have complex tax implications.
While there is great opportunity for businesses looking to expand globally, organizations are under increasing tax scrutiny. Regardless of your company’s size and level of international involvement—whether you’re working abroad, investing, buying and selling, borrowing or manufacturing—doing business beyond Canada’s borders comes with its fair share of tax risks.
Transfer pricing is a complex area of corporate taxation that is concerned with the intra-group pricing of goods, services, intangibles, and financial instruments. Transfer pricing has become a critical governance issue for companies, tax authorities and policy makers, and represents a principal risk area for multinationals.
Succession & estate planning
Like many private business owners today, you’ve spent your career building and running your business successfully. Now you’re faced with deciding on a successor—a successor who may or may not want your direct involvement and share your vision.
Tax Reporting & Advisory
The financial and tax reporting obligations of public markets and global tax authorities take significant resources and investment to manage. This requires calculating global tax provision estimates under US GAAP, IFRS, and other frameworks, and reconciling this reporting with tax compliance obligations.
Our transactions group takes a client-centric, integrated approach, focused on helping you make and implement the best financial strategies. We offer meaningful, actionable and holistic advice to allow you to create value, manage risks and seize opportunities. It’s what we do best: help great organizations like yours grow and thrive.
We bring a wide range of services to both individuals and businesses – including shareholders, executives, directors, lenders, creditors and other advisors who are dealing with a corporation experiencing financial challenges.
Market-driven expertise in investigation, dispute resolution and digital forensics
Viruses. Phishing. Malware infections. Malpractice by employees. Espionage. Data ransom and theft. Fraud. Cybercrime is now a leading risk to all businesses.
Running a business is challenging and you need advice you can rely on at anytime you need it. Our team dives deep into your issues, looking holistically at your organization to understand your people, processes, and systems needs at the root of your pain points. The intersection of these three things is critical to develop the solutions you need today.
Updates for creditors, limited partners, investors and shareholders.
ASPE Sec. 3041 Agriculture Understanding and applying the new ASPE Section 3041 AgricultureThe Canadian Accounting Standards Board (AcSB) has released new guidance on recognizing, measuring and disclosing biological assets and the harvested products of bio assets.
Tax alert Agricultural Clean Technology ProgramThe Agricultural Clean Technology Program will provide financial assistance to farmers and agri-businesses to help them reduce greenhouse gas (GHG) emissions.
Tax alert ACT Program – Research and Innovation Stream explainedThe ACT Research and Innovation Stream provides financial support to organizations engaged in pre-market innovation.
Tax alert ACT Program – Adoption Stream explainedThe ACT Adoption Stream provides non-repayable funding to help farmers and agri-business with the purchase and installation of clean technologies.
Builders And Developers
Every real estate project starts with a vision. We help builders and developers solidify that vision, transform it into reality, and create value.
Rental Property Owners And Occupiers
In today’s economic climate, it’s more important than ever to have a strong advisory partner on your side.
Real Estate Service Providers
Your company plays a key role in the success of landlords, investors and owners, but who is doing the same for you?
There’s no business quite like mining. It’s volatile, risky and complex – but the potential pay-off is huge. You’re not afraid of a challenge: the key is finding the right balance between risk and reward. Whether you’re a junior prospector, a senior producer, or somewhere in between, we’ll work with you to explore, discover and extract value at every stage of the mining process.
Oil & gas
The oil and gas industry is facing many complex challenges, beyond the price of oil. These include environmental issues, access to markets, growing competition from alternative energy sources and international markets, and a rapidly changing regulatory landscape, to name but a few.
Determine if you should sell your business
Any decision about your exit plan—including its timing—comes down to your unique situation and goals. There are three important questions to ask that can help you assess whether now is the right time to plan an exit.
1. How much is my business worth today?
Understanding the current market value of your business impacts any decision you make regarding your future, and getting a proper estimate is a complicated task. The timing of your next steps may change depending on your expected price and the fact that selling your business can sometimes take 9 to 12 months. Working with a professional can help ensure that you don’t overestimate the value of your business or underestimate its potential for future growth.
2. Is my business in demand?
Consider the demand for businesses in your sector and privately-held businesses overall. The Canadian marketplace has seen significant M&A activity over the last 6 to 9 months that has created opportunities for both buyers and sellers. Market conditions can change quickly, so it’s important to understand how the cyclical nature of the M&A landscape could affect your sale prospects.
3. What are my personal goals?
Our personal or financial goals help determine when to exit and your best options. For example, the decision to move on to the next chapter of your life as soon as possible can require more funds upfront, so it’s important to understand the timelines associated with various exit strategy options.
Consider common exit strategies
1. Transition your business to a family member
Consider transferring ownership or control of your business to a family member if you want it to continue in its present form but would like some relief from the mantle of responsibility. With Bill C-208 now law and in effect, you may be able to transition your family-owned business, with prudent succession planning, to the next generation without the adverse tax consequences that currently apply.
To ensure a smooth transition, it’s important to carefully identify and train your successor to handle both short- and long-term decisions and responsibilities.
Transferring business ownership/control to a family member is often part of a succession plan, though this option may fall short of your needs if you require a more rapid exit or payout.
2. Sell your business to your existing partners or employees
A management buyout or sale to an existing senior team member allows individuals familiar with the culture and processes to acquire the company and take control of ownership. This provides continuity in your business and can mean a smoother transition that requires less time to transfer your day-to-day responsibilities. However, selling to your employees can result in a lower sale price and may take longer to fully realize on the funds from the sale, although ultimately the sale price will be dependent on what is happening in the market.
3. Sell your business on the open market.
If your business is profitable and demand is strong, it could draw potential buyers and sell for optimal price. This option requires grooming the business for sale, including making sure that your financial records and asset inventories are current and your processes are adequately documented.
Understand the tax implications of selling your business
The tax implications of stepping away from your business will depend on how you exit. For example, if you choose to hand down your business to a family member—whether through a sale or a gift—the business is deemed to transfer at fair market value, which means that you’ll be taxed on capital gains based on the business’ value. There are exemptions and strategies—such as an estate freeze—that can help you make the transfer as tax efficient as possible, though it’s crucial to plan these in advance of the transaction.
If you’re opting to sell your business, you’ll want to consider the after-tax return on the proceeds of the transaction. Depending on the nature of sale—whether you’re selling only parts of the enterprise, the entire business or if you’re looking to only sell an equity interest in the business—there may be capital gains exemptions and tax deferrals available to you. If you’re thinking about including contingent or earn-out components to the sale of your business, there may be other tax implications to consider.
There are also tax considerations associated with liquidating your business assets. The proceeds of an asset sale will be used to repay outstanding debts owed to creditors, and the remaining proceeds, depending on the ownership structure of your business, may be distributed to you as taxable dividends.
We’ll work alongside you to develop clear solutions for complex challenges. Contact us today.
The information contained herein is intended for general informational purposes only and does not constitute as advice or opinions to be relied upon in relation to any particular circumstance. For more information about this topic, please contact your Grant Thornton advisor. If you do not have an advisor, please contact us. We are happy to help.
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