Budgeting And Forecasting

Most businesses don’t fail because of poor sales—they fail because of poor planning. Budgeting and forecasting turn your bookkeeping into a roadmap for financial control, tax savings, and growth. Mackisen CPA Auditors Montreal helps Canadian businesses use their books strategically to forecast revenue, control expenses, and make data-driven decisions that align with CRA and Revenu Québec reporting requirements.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 230(1): Requires accurate financial records as the foundation for reporting and planning.
CRA Policy IC78-10R5: Encourages proactive financial management through continuous bookkeeping.
Taxation Act (Quebec) Section 34: Obligates accurate forecasting for payroll and QST remittances.
CPA Canada Handbook Section 1500: Defines budgeting and performance measurement standards.
PIPEDA: Protects confidential financial forecasting data stored digitally.

Key Court Decisions
Beaudoin v. The Queen (2020): Reassessment upheld due to unplanned and inconsistent reporting.
Lincora Group v. Quebec (2019): Reinforced that financial projections must align with filed statements.
Royal Bank v. Canada (2019): Denied loan approval due to missing budgets and forecasts.
Tremblay Holdings v. The Queen (2021): Emphasized the importance of documented financial planning.
Desjardins v. Quebec (2021): Recognized budgeting records as evidence of financial control.

Why CRA Targets / Issues / Enforces
Businesses that show irregular income or expense patterns raise CRA red flags. Missing financial projections suggest weak oversight or potential misstatements. Mackisen CPA Auditors Montreal transforms raw bookkeeping data into forward-looking budgets that ensure compliance, guide growth, and satisfy CRA and banking requirements.

Mackisen Strategy
Budget Creation — Build annual budgets based on real historical data.
Forecasting — Project cash flow, sales, and profitability for upcoming periods.
Variance Analysis — Identify gaps between planned and actual performance.
Scenario Planning — Model outcomes for tax and operational changes.
CPA Review — Validate forecasts to align with CRA and financial statement expectations.
Strategic Reporting — Generate monthly management dashboards with actionable insights.

Powering Client Needs and Future Planning
A Montreal architecture firm stabilized its cash flow using Mackisen’s budget control system. A Quebec retailer forecasted tax obligations and avoided penalties through proactive expense planning. A national tech firm used Mackisen’s forecasting reports to secure investor funding.
How Mackisen Clients Benefit

• Predictable financial outcomes and growth control

• Improved CRA and Revenu Québec compliance

• Real-time visibility into spending and margins

• Stronger lender and investor confidence

• CPA-validated forecasting accuracy

Common Questions
How often should I update my budget? Quarterly or after major business shifts.
Can forecasting reduce taxes? Yes, through better expense and timing management.
Does CRA use forecasts? Not directly, but consistent planning supports audit credibility.
Can Mackisen automate budgets? Yes, with integrated cloud accounting tools.
Do forecasts help secure financing? Absolutely—banks and investors require them.

Why Mackisen
Mackisen CPA Auditors Montreal turns bookkeeping into business intelligence. Our CPAs build reliable budgets and forecasts that power smarter decisions, stronger compliance, and measurable growth.