Shawn O’Hara: Welcome everyone. My guest today is Grant Gullekson. He is a Chartered Professional Accountant and the founder and principal of KPI Advising here in Victoria, BC. He specializes in accounting, tax, and advisory services for small business owners across Vancouver Island. With over a decade of experience as a public accountant, controller, and bookkeeper, Grant is known for his practical, client focused approach to financial guidance and compliance. Through KPI Advising, he helps clients simplify their finances, offering corporate and personal tax, bookkeeping, and strategic business advice. Grant, welcome. Thanks for being here today.

Grant Gullekson: Thanks for having me, Shawn.

Shawn: Tell me about yourself and KPI Advising. What do you do?

Grant: I am a proud father of two boys, ages three and ten, and husband to my wonderful wife. Professionally, I am a Chartered Professional Accountant and consider myself a general practitioner. I know a little about a lot, which helps me add value for clients. When things get complicated, I work with a team of specialists I collaborate with regularly.

KPI Advising is a virtual accounting practice I started in 2021. Like many people during COVID, I reassessed what I wanted to do and decided to start my own practice. My main focus is preparing compilation engagement financial statements, corporate T2 tax returns, and tax planning. I also provide advisory support where needed.

Shawn: What do you like about what you do?

Grant: I enjoy working with people, especially small business owners who find taxes and financial statements overwhelming. I take pride in explaining things clearly, even if it takes multiple attempts, until they genuinely understand what we are doing. Accounting did not come naturally to me at first. I had to work at it. Because of that, I can explain concepts in a way that makes sense to people who feel the same way I once did.

Shawn: What kind of clients do you work with?

Grant: Mostly small, owner operated businesses. I enjoy working with husband-and-wife teams. Many clients have three to ten employees, though some have more. A lot are simply small corporations run by a couple.

Shawn: When a small business first contacts you, what are some common compliance or tax surprises they are dealing with?

Grant: The biggest one is that people do not know how much to save for taxes. Sole proprietors struggle with this the most. Corporate tax in BC is straightforward at eleven percent, but personal taxes confuse people. I explain it as a series of buckets. Once you fill one, the overflow is taxed at the next rate, and so on. Generally, I recommend saving twenty-five to thirty percent for personal taxes and eleven percent for corporate taxes, based on net income.

Shawn: Can you walk us through a real example where someone misunderstood a regulation and it cost them time or money?

Grant: I have had clients who focused on running their business and ignored filings such as GST, payroll, or corporate returns. GST and payroll are trust accounts, which means the CRA considers that money held on behalf of the government or employees. They take late filings seriously. There is a five percent penalty on the amount owing, plus interest. A year ago, CRA interest rates were as high as nine percent. Now they are around seven percent, but still significant. Once you fall behind, it is hard to catch up.

Shawn: What happens if people do not pay?

Grant: CRA often issues an arbitrary assessment. It is a deliberately high estimate such as saying you owe twenty thousand dollars in GST. It is meant to prompt action. Many people think they owe that amount, but it is only an estimate. If ignored, CRA escalates with demand to file letters that mention penalties or even jail time. In practice, jail is extremely rare unless it is true tax evasion. For normal businesses that are simply behind, CRA mainly wants you to respond and start fixing the issue.

Shawn: If someone gets one of those scary letters, what should they do?

Grant: Contact me. I am happy to review the letter in a free 15-to-30-minute consultation. I walk people through what it means and help calm their nerves. Whether they hire me or not, I want them to understand that arbitrary assessments are not real numbers. They are only meant to prompt action.

Shawn: CRA is federal. How are businesses impacted at the provincial level?

Grant: In BC, we have PST, which is handled by the Ministry of Finance. There is also the speculation and vacancy tax for property owners, and WorkSafeBC registration, which is mandatory for incorporated businesses. Service based businesses often do not need to remit PST, but anyone selling goods might, depending on thresholds. I focus on income tax, but I have filed PST returns and often call the Ministry of Finance for clarification. Their staff are knowledgeable and helpful.

Shawn: On the federal side, FINTRAC regulates your industry. How does that affect your practice?

Grant: FINTRAC is something we are all adapting to. The main requirement for me is verifying client identity and disclosing true shareholders when filing returns. Where accountants can get into trouble is making payments on behalf of clients such as GST or payroll. To avoid triggering reportable transactions, I have made a business decision not to make payments for clients. I calculate what they owe, but they submit the payments themselves. It reduces administrative burden and avoids unnecessary reporting.

Shawn: FINTRAC fines can be high, even when there is no wrongdoing.

Grant: Yes. Sometimes the issue is not money laundering. It is simply not following the reporting rules. In some cases, the regulations cast too wide a net. The bare trust situation is a good example. CRA initially required filings for far too many situations, then reversed course at the last minute. FINTRAC’s purpose is important, but the scope can feel overly broad.

Shawn: You are known for using clear metrics and KPIs. What numbers should small businesses watch regularly?

Grant: I work closely with a fractional CFO, Jeffrey Denison, who helped me develop a one-page financial health dashboard. It highlights liquidity ratios, cash flow, and other indicators. It sparks useful conversations, such as whether a business has enough cash to cover short term liabilities or whether they have the recommended three months of cash on hand. If deeper support is needed, I refer clients to Jeffrey.

Shawn: Looking ahead, do you see regulatory or tax changes small businesses should prepare for?

Grant: Yes. The federal government and CRA are increasing scrutiny on aggressive tax planning, including strategies that used to be common. Tax on split income rules are a major area. If you pay dividends to a spouse who is not involved in the business, those dividends may be taxed at the highest marginal rate, which is about fifty three percent in BC. Good bookkeeping and strong record keeping are essential. More audits and more legislation are coming, and owners need to work with accountants who stay current on these changes.

Shawn: Some people like to do everything themselves with QuickBooks or tax software. What advice would you give them?

Grant: I have a few clients who are self taught QuickBooks users and do an excellent job. They are the exception. QuickBooks is not as simple as the commercials make it seem. Accounting follows a specific logic that does not come naturally to most people. When a business is very small, you can keep receipts organized by category to save money. As you grow, you cannot keep everything in your head. You need proper bookkeeping software, reconciled accounts, and accurate records. At that point, it makes sense to work with a bookkeeper or accountant.

Shawn: If a business feels overwhelmed or behind, what does a realistic cleanup plan look like?

Grant: The first step is booking a call. Talking to someone reduces anxiety. Then we create a task list of documents to gather. We get access to their CRA account to see what is outstanding. Once we have bank statements, credit card statements, and receipts, a bookkeeper compiles the year. After that, I prepare the financial statements. It can take a few months because everyone is busy, but the key is to start. Once the documents are gathered, we move quickly.

Shawn: If someone wants to use your services, what is the best way to proceed?

Grant: They can call me at 250-361-1199 or contact me through my website at www.kpicpa.ca. There is a contact form and a button to book a 15-minute consultation directly into my calendar.

Shawn: What situations should someone not contact you for?

Grant: I am only licensed for compilation engagements. If someone needs a review or audit, I can help them find someone, but I cannot take it on. Another situation is when someone wants to drop off a box of receipts and expects everything to be handled without their involvement. That is not realistic for any accountant. Owners must answer questions because they know what each expense was for.

Shawn: Thank you. My guest today has been Grant Gullekson, a Chartered Professional Accountant. Thank you for being here.

Grant: Thanks, Shawn. I appreciated the opportunity. This was my first podcast, and it was a lot of fun. I would love to do it again sometime.

Shawn: That would be excellent. We can have you back.

Grant: Sounds good.

Shawn: And that is a wrap.

Links

KPI Advising

Grant Gullekson, CPA on LinkedIn