Partnership Accounting Services

Partnership structures require specialized accounting expertise that differs significantly from corporate accounting. As flow-through entities, partnerships need precise tracking of partner capital accounts, accurate calculation of distributive shares, and proper allocation of income, deductions, and credits among partners. Our partnership accounting services understand these unique requirements and provide the specialized expertise Canadian partnerships need.

From general partnerships to limited partnerships and limited liability partnerships, our partnership accounting team delivers comprehensive solutions that maintain accurate capital accounts, ensure proper profit and loss allocations, and prepare T5013 information returns that satisfy CRA requirements. We help you comply with your partnership agreement while managing the tax implications of partnership operations. Our partnership bookkeeping services ensure your partnership maintains proper records while supporting informed decision-making by all partners.

Whether you're a small partnership with a few partners or a large partnership with complex allocation structures, we provide the partnership accounting expertise you need. Our specialized partnership services help you maintain accurate capital accounts, distribute profits and losses according to your partnership agreement, prepare compliant T5013 returns, and handle complex partnership transactions including partner admissions, withdrawals, and buyouts. Trust our expertise to support every aspect of your partnership's accounting and tax compliance needs.

Partner Capital Account Management

Maintaining accurate capital accounts for each partner is fundamental to partnership accounting. Our partnership capital account services track initial contributions, additional capital contributions, each partner's share of partnership income or loss, and all distributions or withdrawals. We implement capital account maintenance systems that provide real-time visibility into each partner's equity position while maintaining detailed transaction histories that support partnership agreement requirements.

We understand the difference between inside basis (partner's capital account on partnership books) and outside basis (partner's tax basis in their partnership interest), helping partners understand both their book equity and tax basis positions. Our capital account tracking includes maintenance of capital account ledgers, preparation of schedules of partner equity, and computation of required REST (Required Adjustments to the Basis of Partnership Property) adjustments when partners are admitted or withdraw.

Whether your partnership uses simple capital account maintenance or complex capital account maintenance with substantial economic effect, our partnership accounting services ensure proper tracking and reporting. We help partnerships maintain accurate capital accounts that support partnership agreement compliance, inform partner decision-making, and provide the documentation needed for tax purposes. Canadian partnerships trust our expertise to maintain precise capital account records that withstand CRA scrutiny and partner disputes.

T5013 Partnership Information Return Preparation

Our partnership accounting services include comprehensive T5013 preparation and filing support for Canadian partnerships. We prepare partnership information returns that accurately report each partner's share of income, deductions, credits, and other tax items as required by the CRA. Our T5013 services include calculating each partner's distributive share according to partnership agreement provisions, preparing all required supplementary schedules, and ensuring proper allocation of separately stated items.

We help partnerships meet T5013 filing deadlines, maintain proper supporting documentation for all reported items, and respond to CRA inquiries about partnership returns. Our partnership tax expertise extends to understanding complex allocation scenarios, handling special allocations that have substantial economic effect under tax regulations, and ensuring T5013 returns accurately reflect the partnership's operations while maintaining consistency with partnership agreements.

Beyond basic T5013 preparation, we provide year-round partnership tax planning, help partnerships understand the tax implications of business decisions, and structure transactions tax-efficiently. Our partnership tax services include review of partnership agreements for tax implications, planning for partner admissions or withdrawals, and strategies for optimizing partnership tax positions. Canadian partnerships rely on our T5013 expertise to maintain compliance while minimizing tax burdens through proper planning and allocation strategies.

Profit & Loss Allocation & Distribution Management

Proper allocation of partnership income, loss, deductions, and credits requires careful attention to both partnership agreement provisions and tax regulations. Our profit and loss allocation services implement sophisticated systems that calculate each partner's distributive share accurately, whether using simple percentage allocations, tiered distribution structures, or complex special allocations that must have substantial economic effect for tax purposes.

We handle allocation scenarios including guaranteed payments to partners for services or use of capital, allocation of ordinary income vs. separately stated items, calculation of qualified business income deductions when applicable, and proper treatment of partner withdrawals. Our profit distribution management ensures allocations comply with partnership agreements while meeting CRA requirements for tax reporting.

We maintain detailed records of all profit and loss allocations, prepare partner distribution schedules showing each partner's share of partnership items, and provide partners with the information they need for their individual tax returns. Our partnership allocation services help partnerships structure distributions efficiently, plan for tax implications, and maintain compliance with all applicable rules. We help you navigate complex allocation scenarios while ensuring proper reporting and partner satisfaction.

Partner Admission, Withdrawal & Buyout Accounting

Partnership structures evolve over time as new partners join, existing partners retire, or partners buy out each other's interests. Our partnership accounting services handle the complex accounting and tax implications of these structural changes, including valuation of partnership interests, calculation of buyout amounts, adjustments to capital accounts for remaining partners, and basis calculations for both incoming and outgoing partners.

We help partnerships navigate partner admission scenarios including calculation of outside basis for new partners, allocation of existing partnership assets and liabilities, handling of Section 501(c) rollovers when applicable, and preparation of necessary documentation. For partner withdrawals and buyouts, we manage valuation processes, calculate buyout amounts, adjust capital accounts, and help structure transactions tax-efficiently.

Our partnership change services ensure smooth transitions while maintaining accurate partnership books and tax compliance. We help partnerships understand the tax consequences of partner changes, structure transactions to minimize tax liabilities, and prepare all necessary documentation. Whether you're admitting a new partner, handling a partner retirement, or facilitating a partner buyout, our partnership accounting expertise ensures proper accounting treatment and tax compliance.

Partnership Agreement Compliance & Accounting

Partnership agreements establish the rules governing partnership operations, including specific accounting requirements that must be followed. Our partnership agreement compliance services ensure your partnership's accounting practices align perfectly with agreement provisions. We implement accounting systems that track required information, prepare reports specified in partnership agreements, and maintain documentation that supports agreement requirements.

We help partnerships comply with complex agreement provisions including capital account maintenance requirements, distribution waterfalls and preferences, voting rights tied to capital account balances, buy-sell provisions that trigger valuations, and dispute resolution mechanisms requiring financial information. Our partnership accounting expertise helps prevent disputes by maintaining accurate records and providing transparent reporting to all partners.

For partnerships establishing new agreements, we review draft provisions for accounting implications and recommend changes that align accounting practices with partnership intentions. For existing partnerships, we conduct compliance reviews to ensure current accounting practices meet agreement requirements and identify any areas needing adjustment. Our partnership agreement services help maintain harmony among partners while ensuring accounting practices support partnership objectives.

Partnership Financial Reporting & Tax Planning

Partners need clear, accurate financial information to make informed decisions about their partnership interests and plan their individual tax positions. Our partnership financial reporting services deliver comprehensive financial statements tailored to partnership requirements, including partnership-level income statements, balance sheets showing each partner's capital account, and detailed schedules of partnership allocations.

We prepare partnership financial packages that provide both partnership-level overviews and partner-specific information, enabling all partners to understand the partnership's financial position and their individual equity positions. Our partnership reporting includes capital account statements, profit and loss allocation schedules, and projection analyses that support partner decision-making about contributions, distributions, and partnership strategy.

Beyond historical reporting, we provide partnership tax planning services that help partners understand the tax implications of partnership decisions, plan for tax payments, and structure transactions tax-efficiently. Our partnership tax planning includes projections of partnership income and each partner's tax position, analysis of proposed transactions, and strategies for optimizing overall tax burdens. Canadian partnerships trust our expertise to provide clear financial insights while maintaining tax compliance.

Our partnership accounting integrates seamlessly with our comprehensive bookkeeping and accounting services. From full-cycle bookkeeping to financial statement preparation, we provide complete financial management support tailored to partnership structures. For partnerships with complex structures, our multi-entity management services help manage partnerships that own multiple entities or have complex organizational charts.

Partnerships operating across multiple locations benefit from our multi-location accounting services that maintain centralized partnership accounting while tracking location-specific performance. We also provide specialized support for related partnership needs including catch-up bookkeeping for partnerships getting current with their records, system migration for partnerships upgrading accounting systems, and joint venture accounting for partnerships involved in joint ventures. Trust our expertise to support every aspect of your partnership's financial management.