Updated Checked by the Tax-Services.ca editorial team How we check
Cash flow projections work best when your accountant gets real numbers from you early, and you get plain questions back. Bring your sales, your payroll and your tax dates, and ask for one thing: a month by month view of the cash you’ll actually have, not the profit you’ll book.
What should you bring to the first cash flow meeting?
Bring less than you think, but bring it organised. Last year’s monthly sales, your customer terms (do people pay in 15 days or 60?), the payroll list, loan payments, rent, and any big purchase you’ve been putting off.
Then say what you expect to change. A new hire, a price rise, a slow season. The accountant can’t guess that from the books, because the books only know what already happened and a projection is about what hasn’t.
Ask who does what before you leave the room. You supply the assumptions. They check them against the tax rules and build the model. Agree how often you’ll update it, and stick to it.
Which cash calls do people forget?
Profit and cash are different animals. Three items catch owners out again and again, because they leave the bank without ever appearing as an expense.
| Cash call | When it hits (CRA) |
|---|---|
| Payroll deductions, plus your own CPP and EI share | Regular remitters: 15th of the next month |
| GST/HST net owing | Monthly or quarterly filers: one month after the period; annual filers: three months after year end |
| Corporate tax balance | Two or three months after year end, depending on the corporation |
The dates come from the CRA. For a corporation, the exact deadline depends on its circumstances, so have the accountant confirm yours. Corporate instalments need the same check. The CRA’s page on instalment due dates says most corporations pay monthly, while some small Canadian-controlled private corporations with a clean compliance record can pay quarterly. Which group you fall in changes when the cash leaves.
What does a monthly cash flow projection look like with numbers?
Here’s a small Ontario company. It has three employees paid $2,000 every two weeks, and it expects $300,000 of taxable business income for 2026.
On payroll, the payroll remittance calculator gives $1,665.14 to send the CRA per pay date. With two pay dates in a month, that’s $3,330.27 going out on the 15th. The full payroll cost is $6,469.89 per period, so about $12,939.78 in a two-pay month, since your CPP and EI share sits on top of wages. Every-second-Friday paycheques mean two months a year have three pay dates, so pencil in a heavier month.
Now tax. The corporate tax calculator shows $35,088 for the year at 11.7%. Set that rate down in pencil. Ontario cut its small business rate on 1 July 2026, the tool uses a derived blend, and your year end may change the answer. Setting aside a twelfth is $2,924 a month.
And HST. On $100,000 of sales the GST/HST calculator shows $13,000 of HST at 13%. That money moves through your account, but it’s owed to the CRA (less what you paid on purchases). Park it in its own account and the projection stops lying to you.
Add it up and that one small firm needs about $6,254 a month just for tax reserves and payroll remittances, before it buys anything or pays itself. Your accountant should see that number before you do.
How do you keep a cash flow projection honest?
Compare it with the bank every month. Where it’s off by more than a few percent, find out why, and change the assumption, not the actual figure.
Build three versions. A normal one, a bad one where sales fall 20% and customers pay a month late, and a good one. The bad version tells you when you’d have to borrow. If that could happen, the line of credit calculator shows what carrying a balance costs.
Ask your accountant which numbers they trust least. Every model has a soft spot, usually receivables or a big one-off tax bill.
What mistakes and limits should you know about?
Don’t treat a projection as a promise. It’s a set of assumptions with dates on them. The calculators here assume steady pay and one province, and they leave out workers’ compensation, instalments and anything unusual.
If your income swings, tax instalments for owners who pay personal tax are another cash item, and the tax instalments calculator gives the schedule the CRA sets when net tax owing passes $3,000.
The most common failure is silence. Owners who tell the accountant about a big customer loss in month one get a plan. Those who mention it in month five get a bill.
Common questions about working with your accountant on cash flow
How far ahead should the projection run? Twelve months, rolled forward each month, is a good default. The first three months should be detailed, and the rest can be rougher.
How often should we meet? Monthly while the business is young or tight on cash, quarterly once things settle. A short email with last month’s bank balance and any surprises works between meetings.
What if I’m paid late by one big customer? Tell your accountant straight away. A single slow payer can change the whole six-month view, and the fix, like earlier invoicing or a deposit, is easier to start early.
How we checked the figures
Due dates come from Canada Revenue Agency pages on payroll remittances, GST/HST and corporate tax payments. The calculator figures use 2026 federal and provincial data checked in September 2026. No level of government runs or endorses this site.
Frequently asked questions
What should I give my accountant for a cash flow projection?
Monthly sales, customer payment terms, payroll, loan payments, rent and any planned changes such as a hire or a price rise.
Which taxes hit cash flow hardest?
Payroll remittances, net GST/HST and the corporate tax balance. None of them shows up as a normal expense when the cash leaves.
How often should we update the projection?
Monthly is a sensible default. Compare it with the bank and change the assumption that was wrong.
Is HST my money?
No. You collect it for the CRA, less the HST you paid on purchases. Keep it apart from working cash.
Can I rely on the 11.7% corporate rate?
Only as an estimate. Ontario cut its small business rate on 1 July 2026, so the 2026 figure is a derived blend and your year end may differ.
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