(437) 561-6272

CPA Quick Support — a licensed CPA on call from $99/month.

Get an instant quote
Who we help · Retirement homes · Accounting

Retirement home accounting that runs on resident-days, not months.

A retirement residence bills by the month but spends by the shift, and the spread between those two clocks is where the margin lives. So we build the books in the sector's own units: care and dining costs per resident-day, a 24/7 payroll mapped to departments, and a resident ledger that follows the RTA's care-home rules to the letter.

Staff member with a resident in a retirement home

The roster is the budget

A residence never closes, so payroll runs in shifts around the clock: care staff, kitchen and dining, housekeeping and laundry, concierge, nights. Staffing is the dominant cost of the business, which makes payroll accuracy the closest thing the books have to margin control. Ontario employment rules do real work here — overtime after 44 hours a week, public holiday pay in a building that cannot close for a statutory holiday, vacation pay accruing on every shift, WSIB premiums on all of it. We run that payroll inside End-to-End Accounting with each employee coded to a department, so a scheduling change surfaces in next month's statement as a visible cost movement rather than a blended blur.

Two payroll lines get their own watch. Agency staff who cover night gaps arrive as invoices rather than T4s and cost more per hour than your own roster, so we report agency hours beside employed hours; bury them in general expenses and the premium disappears from view. And once total payroll passes the $1 million exemption available to eligible private employers, Ontario's Employer Health Tax joins the remittance calendar — a line a fully staffed residence reaches early in its life.

Departments, each with its own yardstick

One blended expense column cannot answer the questions an operator actually asks. We keep the ledger departmental, and we divide the big lines by resident-days rather than by month, because the census moves daily and February is shorter than July. On that basis two months with different occupancy become comparable, and drift shows up while it is still small enough to fix.

DepartmentIts yardstick
Care staffingCare hours delivered per resident-day, against the roster plan
Dining servicesRaw food cost per resident-day, kept separate from kitchen labour
Housekeeping & laundryCost per occupied suite, since empty suites need little of either
Building & utilitiesCost per suite — largely fixed, so occupancy decides how it spreads
Administration & marketingCost per move-in, the price of filling the next suite

Dext captures the supplier paper — food distributors, pharmacy, linen, maintenance trades — against the right department, and QuickBooks Online holds the structure. The point is not elegance. It is that when the dining line moves, you know within a month whether the cause was the census, the menu or the supplier.

The resident ledger has a statute behind it

Your residents are tenants of a care home under Ontario's Residential Tenancies Act, and the ledger has to respect that. A deposit may only be taken for the last month's rent — capped at one month of the rent portion, never a damage deposit — and it earns interest at the annual guideline rate, a liability the books carry per resident rather than discover at move-out. The rent portion of the monthly charge moves with the rent-increase guideline; charges for care services and meals sit outside the guideline but need at least 90 days' written notice before they rise.

All of that flows from how the resident agreement splits rent from care and meals, so we keep the agreement, the ledger and the invoice telling one story — the same split the HST analysis leans on, which makes billing hygiene a tax matter as much as a courtesy. Mid-month move-ins, respite stays and package changes each post against the agreement in force, and the census ties to the billing run every month: every occupied suite billed, every billed suite occupied.

A file the RHRA, the bank and the family can all read

Licensing gives this niche a second reader. The RHRA inspects residences under the Retirement Homes Act, 2010, and while the inspectors' focus is care and safety, the finance file corroborates the story: payroll that matches the posted schedules, training costs where the plan says training happened, maintenance spending behind the fire-safety log. We close the books monthly on a fixed rhythm so those records exist as routine, not as assembly under pressure.

Lenders read the same file differently — occupancy, revenue per suite, debt service — and family members occasionally ask pointed questions about a parent's account, which a clean per-resident ledger answers in minutes. When the bank wants formal statements, a Compilation Engagement sits on top of books that already reconcile. For residences in Mississauga and across the GTA, the engagement is scoped in writing after a free 15-minute discovery call.

Source: Ontario — Residential Tenancies Act, 2006.

Common questions

03
What deposit can we take from a new resident?

Under the RTA care-home rules, only a deposit for the last month's rent — capped at one month of the rent portion, never a damage deposit — and it earns interest annually at the guideline rate. We carry it as a per-resident liability so move-outs settle cleanly.

Can we increase care and meal charges during a tenancy?

Yes, with at least 90 days' written notice; those charges sit outside the rent-increase guideline. The rent portion of the monthly invoice follows the guideline like any other Ontario tenancy.

Why measure food cost per resident-day instead of per month?

Because the census moves daily and months differ in length, per-month numbers hide drift. Raw food cost per resident-day makes a short month comparable with a long one and shows whether a change came from occupancy, the menu or the supplier.

Keep exploring

03

Care & Community

Every care & community niche we work with.

Visit page

Retirement home tax services

Exempt rent, analysed care packages and the T2 behind the residence.

Visit page

Funeral home accounting

Pre-need money held in trust and at-need books under BAO rules.

Visit page

Books that keep pace with the census

A free 15-minute discovery call, no commitment. Walla replies within two business days, either way.

CPA Ontario
Client stories

Rated 5.0 on Google.

Instant quoteGet pricing in 2 minutes Call us(437) 561-6272