Fractional CFO services in Canada

SR&ED tax credit

The Scientific Research and Experimental Development credit refunds 35% of qualifying R&D expenditure (refundable in cash) for Canadian-Controlled Private Corporations on the first ~CAD 3M of qualifying spend, plus 15% on amounts above. The single most generous federal R&D incentive in North America and a core part of every Canadian tech startup's funding stack.

BDC equity and lending

BDC (Business Development Bank of Canada) is the federal investment bank. BDC Capital invests directly and as an LP across Canadian VC funds; BDC also provides growth lending and venture debt. Most active Canadian VCs carry BDC capital in the LP base.

IRAP grants and NRC programmes

Industrial Research Assistance Program (IRAP) provides non-repayable contributions for innovation projects, typically up to CAD 1M per project. Slow but valuable; stacks with SR&ED and runs alongside dedicated NRC programmes for technology and advanced manufacturing.

Provincial innovation programmes

Canadian provinces operate complementary innovation programmes - Quebec's Investissement Québec and CRIQ, Ontario's Centre for Commercialization of Research, Alberta Innovates, Innovate BC. Programmes vary by province; worth checking the specific province of incorporation.

Canadian VC ecosystem

Canadian VC has scaled significantly with Toronto, Montreal, Vancouver and Waterloo as the main hubs. Active funds include Inovia Capital, Real Ventures, Georgian, Golden Ventures, BDC Capital, OMERS Ventures, Information Venture Partners and Relay Ventures. Cross-border participation from US investors is heavy.

Venture debt and growth lending

BDC Capital, CIBC Innovation Banking, RBCx, Espresso Capital and Vistara Growth provide growth lending and venture debt. The post-SVB Canadian venture debt market is well-developed; typically deployed alongside priced equity rounds from Series A onwards.

CCPC stock options

Options granted by a Canadian-Controlled Private Corporation can defer the taxable benefit until the underlying shares are sold (rather than at exercise). Combined with the lifetime capital gains exemption on Qualified Small Business Corporation shares (CAD 1M+), CCPC option grants are one of the most founder- and employee-friendly equity regimes in the world.

Non-CCPC stock options

Options in public companies or non-CCPC private companies are taxed at exercise on the spread as employment income, subject to the 50% stock option deduction where the company holds the right form of agreement. Less favourable than CCPC but still workable for venture-backed Canadian companies that lose CCPC status post-Series B.

2021 option deduction cap

Federal 2021 reforms cap the favourable 50% stock option deduction at CAD 200k of vesting per year per employee at qualifying employers (with carve-outs for CCPCs and certain Canadian-Controlled groups). Worth understanding for non-CCPC employers and large grants.

Restricted Stock Units (RSUs)

Used at later-stage Canadian companies and post-IPO. Taxed as employment income at vesting at marginal rates. Double-trigger structures used at growth-stage private companies to avoid taxing employees on illiquid shares.

QSBC shares and lifetime exemption

Founders disposing of Qualified Small Business Corporation shares may access the Lifetime Capital Gains Exemption (LCGE) - currently sheltering up to ~CAD 1M+ of gains. Requires QSBC qualification on the disposition date and through specific lookback periods. Often the single most consequential personal tax planning item for Canadian founders.

Reporting and CRA

Option exercises, RSU vests and dispositions flow through T4 reporting and the annual T1 personal return. Material option plans require careful coordination with the Canadian payroll provider, cap-table tool and tax advisor - particularly across CCPC status changes.

Accounting

• •QuickBooks Online - universal Canadian default.
• •Xero - alternative, common at internationally-facing Canadian companies.
• •NetSuite - for late-stage companies needing multi-entity consolidation.

Payroll

• •Wagepoint - Canadian-built; common at startups under 50 headcount.
• •ADP Canada or Ceridian Dayforce - established Canadian payroll engines for mid-market.
• •Rise People - modern Canadian HR + payroll.
• •Deel or Remote - for hiring contractors and staff outside Canada.

Business banking

• •RBC, TD, BMO, CIBC or Scotiabank - the Canadian Big Five for treasury, FX and traditional debt.
• •CIBC Innovation Banking or RBCx - venture-focused arms for VC-backed startups.
• •Mercury - for Canadian founders with a US C-corp.
• •Wise Business - for multi-currency operations.

Cap table & equity admin

• •Carta - dominant in Canadian venture-backed startups, including CCPC and post-CCPC plans.
• •Pulley - strong alternative with modern UX.
• •Shareworks (Morgan Stanley) - used at later stage and pre-IPO.

Expenses & corporate cards

• •Float - Canadian-built; clean integration with Canadian banks and accounting.
• •Brex or Ramp - for Canadian founders with US C-corp parent.
• •AmEx Business or RBC commercial cards - for traditional issuer preferences.