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It’s a Critical Path
Contracts generally govern most projects undertaken by Engineers. And those contracts usually address issues of relevance to accounting and financial planning: things such as retainers, billing frequency, and holdbacks all hugely affect the profitability and financial pressures that such firms can find themselves subject to.
Because overheads usually begin before any projects are started, and since payrolls run constantly, it is usually necessary to finance the overheads of an engineering practice with a bank. A sound and productive banking relationship is almost always an absolute necessity, and Lohn Caulder is well accustomed to assisting with the requirements of bankers. Usually, credit is granted on various terms, depending on the underlying asset that is being posted as security (cash, receivables, work-in-process, equipment, and general goodwill).
We at Lohn Caulder are aware of the differing reporting requirements, and work hard to keep your banking relationship a good one.
Profits that have been quite lightly taxed can be accumulated in holding companies, and provide financing for future business opportunities, joint ventures, or other long-term investments. We recommend such structures frequently, and are well experienced in their use.
Engineers in Vancouver are often engaged on projects outside of Canada. This brings another host of tax issues, including cross-border transactions, transfer pricing, head office cost recovery, and permanent establishments in foreign jurisdictions. Lohn Caulder is well experienced in advising clients who venture outside of Canada in this way – it’s a very exciting and lucrative way of expanding your business, and the compliance burdens placed on such activity (by both the Canada Revenue Agency and the relevant foreign jurisdiction) can be easily controlled, and need not be the ‘huge mess’ you might think it could be.
Often, the assistance of our affiliated firms in BKR International worldwide can assist with on-the-ground assistance in a foreign jurisdiction. Lohn Caulder is also well versed in the methods of repatriating profits back to Canada.
Engineers usually need expensive tools – these include computer systems of sufficient power to support computer-aided design programs, and often huge electronic storage requirements. Lohn Caulder is well experienced in matters of information technology, and, together with some strategic partners, can assist you with identification and specification of the necessary technology – and how to manage the expense.
