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Private Enterprise

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Faced with an increasingly demanding economic environment, it’s vital for Canadian private enterprises to employ accounting standards that respond to their needs and the needs of those who use financial statements.

The success of private enterprises requires access to a reliable advisor who understands and values your business by respecting the personal stake you have in its success. “Accounting is a process of recording, summarizing, analyzing and recording of financial transactions of an enterprise.” Accounting is a key function of any business enterprise, it’s often referred to as the “Language of Business”. Business accounting not only helps in making short and long term business decisions, but also helps an enterprise grow and penetrate the market. Proper reporting and accounting practices help maintain the confidence of investors.

Faris CPA can help keep your accounting records stay clean and up to date, ensuring that the results of your operations and statement of financial position are properly reported. We can analyze your balance sheets and calculate profit and loss account ratios to assess the performance of your business. Through proper reporting and accounting practices, we help you make short term and long term business decisions to help your business grow, maintain investors’ confidence and stimulate economic growth.


What are the differences between private and public enterprise?
There are fundamental differences between public enterprises and private enterprises. A public enterprise is a business that the public, often the government, controls. Since the government, an agent of the people or public ownership by the government, is the ultimate form of public ownership. A private enterprise, on the other hand, is one that private citizens own or control. This can be in the form of sole ownership to large corporations.
How are private corporations taxed in Canada?

Private corporations are taxed the same as regular corporations. The profits of private entities are taxed by a favorable corporate tax rate. Shareholders get their dividends and have to report those amounts as taxable incomes. For Canadian Controlled Private Corporations claiming the small business deduction, the total tax rate is around 11.5 per cent at the federal level.

How are private enterprises taxed in Canada?

The Canada’s federal tax system imposes 9% small business tax rate, while the general corporate tax is 28%. On top of this, each province has its own corporate tax system with various treatment for private enterprises.

What are the Canadian accounting standards for private enterprises?

There are two Canadian accounting standard for private enterprises. Private enterprises can choose either Accounting Standards for Private Enterprises (ASPE) or International Financial Reporting Standards (IFRS). The ASPE were adapted from the IFRS published by the International Accounting Standard Board in July 2009.

What is an example of a private enterprise?

A private enterprise is a privately owned business running independently of the government. An example of a private enterprise is a company with sole proprietor like contractors, designers, and technicians.

Chartered Professional Accountant in Canada, U.S. and U.K.


“Sam Faris & his team provided a highly professional accounting & tax service that was both comprehensive & detailed. Additionally, Sam was excellent at collaborating with other professional advisors that I use. As an entrepreneur, I’d highly recommend Faris CPA.”

Mark Barnicutt

Pro Tip


The Small Business Deduction gives businesses a tax deduction on the first $500,000 of income. This saves an eligible corporation around up to $50,000 in income taxes. There are a number of conditions that have to be met to be eligible for this deduction.