A business development toolkit designed for Quebec’s video game studios. It brings together practical insights and reliable resources to help studios understand the key challenges of building and growing a business, and know where to find additional guidance.
The Game Studio Toolkit
1.5 Basic Accounting, Taxation, and Internal Controls
Basic Accounting, Taxation, and Internal Controls
A young business does not necessarily need a finance department. It needs to know where its money is going, maintain proper records, and meet its tax obligations on time.
For a video game studio, this discipline is particularly important. Expenses often begin well before revenue comes in, many funding programs and tax credits depend on documented costs, and the first hires quickly introduce payroll-related obligations.
The goal is to establish a simple system for tracking the studio’s finances, meeting its obligations, and providing the necessary information when requested by a funding program, financial institution, partner, or qualified professional.
Key Takeaways
- The studio’s finances should be kept separate from the founders’ personal finances as early as possible.
- A bank transaction alone is not always sufficient to substantiate an expense. Invoices, receipts, contracts, and other supporting documents should be kept organized.
- Collected sales taxes, payroll deductions, and other amounts owed to government authorities should not be treated as available cash to fund studio operations.
- A few simple internal controls, such as defining who can authorize expenses, keeping documents in one place, and regularly reviewing accounts, help establish a solid foundation from the outset.
Why It Matters
In the early stages, a few expenses charged to a personal credit card may seem easy to manage.
Then come software subscriptions, freelancers, the first payroll payments, taxes, contract revenue, a payment from a publisher, or a funding application.
Without a clear system, it quickly becomes difficult to answer seemingly simple questions: How much has the studio actually spent? Where is the invoice? Is that money really available? Have taxes been set aside? Who authorized this expense?
Reliable financial information helps a studio meet its business obligations and make better decisions. It also becomes important when seeking funding, claiming a tax credit, or demonstrating eligible expenses.
The goal is not to make operations more complicated. It is to establish enough financial discipline to keep information clear and useful as the studio grows.
Ressources
La Guilde Service Partners Who Can Help
OnCompte provides accounting and financial management services to startups and SMEs. Its services include bookkeeping, tax compliance, payroll, cash flow forecasting, budgeting, and on-demand financial management.
Innoprofits helps businesses with tax credit claims and innovation financing strategies. For video game studios, its expertise can be particularly valuable when navigating Quebec’s Multimedia Tax Credit (CTMM) and the Scientific Research and Experimental Development (SR&ED) program.
National Bank offers business banking and financial solutions, including day-to-day banking, cash management, and financing. La Guilde members can contact the La Guilde team to be connected with National Bank representatives who specialize in the creative industries.
Additional Resources
Investissement Québec | Production of Multimedia Titles
An official resource for studios looking to understand Quebec’s Multimedia Tax Credit (CTMM), its eligibility criteria, and the documentation required for the certification process. Particularly useful for understanding why certain expenses and business records need to be properly documented from the outset.
Revenu Québec | Record Keeping and Supporting Documents
An official reference outlining the records, invoices, and other supporting documents businesses must retain. It also explains the requirements for electronically stored records and the general retention periods.
Revenu Québec | GST and QST Registration
A starting point for determining when a business must register for the Goods and Services Tax (GST) and Quebec Sales Tax (QST), understanding the responsibilities that come with registration, and completing the necessary steps.
Revenu Québec | Employers’ Kit
A resource for studios preparing to pay their first employees. It brings together information and tools covering payroll deductions, employer contributions, and key payroll obligations.
BDC | Accounting Essentials for Business Owners
A practical introduction to accounting for business owners. It covers bookkeeping, financial statements, cash flow management, and basic internal controls that help maintain reliable financial records.