Fast-growing ecommerce brands need financial systems that keep up.

Once taxable revenues exceed $30,000 in any rolling 12-month period, GST/HST registration is mandatory. For businesses selling across provinces, additional obligations apply. British Columbia, Manitoba, and Saskatchewan have separate provincial sales tax rules that apply independently of HST. For businesses selling into the United States, state sales tax nexus rules triggered by economic presence add further compliance obligations. Marketplace facilitator rules on Amazon.ca and similar platforms affect how obligations are calculated and who remits. Getting registered at the right threshold, in the right jurisdictions, and with the right input tax credit recovery process in place is the starting point for clean indirect tax compliance.

Because every platform settles differently. Amazon settlement reports net out fees, reimbursements, and refunds before depositing a single amount that does not match gross revenue. Shopify payouts exclude chargebacks and may reflect transactions from a prior period. Gift card redemptions, split payments, and third-party logistics fees add further layers. When these flows are not reconciled correctly, revenue is overstated or understated, COGS is misallocated, and the financials do not reflect what actually happened in the business. Volume compounds the problem quickly.

Landed cost is the total cost of getting inventory to your warehouse: purchase price, inbound freight, customs duties, currency conversion, and any applicable import fees. When inventory is recorded at purchase price alone, gross margin is overstated and purchasing decisions are made on incomplete economics. For Canadian ecommerce businesses importing from overseas suppliers, landed cost can add 15 to 30 percent or more to the cost of goods sold depending on the product category and origin country. Accurate margin reporting starts with accurate landed cost.

The optimal structure depends on corporate income, personal tax bracket, RRSP contribution room, CPP considerations, and cash flow needs. A salary provides RRSP contribution room and pensionable earnings but is subject to payroll remittances. Dividends are more tax-efficient at certain income levels but do not generate RRSP room. Most incorporated ecommerce founders benefit from a combination reviewed annually rather than set once. Retained earnings inside the corporation at the small business rate create meaningful long-term tax deferral, provided passive income does not trigger the SBD grind.

Common signals: margins are unclear despite strong revenue, cash flow is harder to predict than sales volumes suggest, inventory purchasing decisions are being made without a financial model, a lender or investor is requesting financials the business cannot produce quickly, or the founder is spending significant time on financial questions rather than growth decisions. For Canadian ecommerce businesses approaching $3 million in annual revenue, a Virtual CFO engagement is typically the most cost-effective way to build the financial oversight the business needs without the cost of a full-time hire.

Salary-dividend mix reviewed annually rather than set at incorporation, retained earnings planning rather than distributing everything each year, HoldCo structures to manage passive investment income outside the operating company, and LCGE preparation for founders who may eventually sell the business. For businesses with cross-border sales, transfer pricing and cross-border structuring require attention earlier than most founders expect. SR&ED credits may also be available for ecommerce businesses with qualifying software development or proprietary technology in the platform or operations stack.