It’s October, which means December is basically tomorrow. If you run a business in Toronto and your team carried you through the year, the company holiday party in Toronto is one of those things you really don’t want to leave to the last minute. The good spots fill up fast, and the numbers matter more than people think.
At BTM Financial we keep the books for alot of small and medium businesses across Canada, so here’s how we’d plan a company holiday party in Toronto without wrecking your December cash flow, and how to keep the CRA side clean.
Start with the budget for your company holiday party in Toronto
Before you pick a venue or a menu, look at your numbers. How does your cash flow usually look in December? For some businesses it’s the strongest month of the year. For others it’s exactly when payroll, suppliers and year-end bills all land at once.
The simplest way to set a budget is a fixed amount per person, multiplied by your team. That way you know the number now instead of finding out in January. If you’re planning gifts or a gift exchange, budget for those separately, because for tax purposes they aren’t always treated the same as food.
What the CRA says about meals and entertainment
This is the part almost nobody checks. In Canada, business meals and entertainment are generally only 50% deductible. But there are exceptions, and one of the most relevant ones this time of year has to do with events for your whole staff.
The key points are that the party is for your team, that everyone at that workplace is invited, and that it’s properly documented. If clients or suppliers come too, that part may be treated differently, so its worth a quick chat with your accountant.
Keep your receipts from day one
Don’t wait until tax time to collect paperwork. Ask the restaurant or caterer for an itemized invoice, keep the proof of payment, and write down who attended and what the event was for. A simple list in the same folder can save you a lot of stress if the CRA ever asks questions.
One more practical tip: set up a separate category in your books just for staff events. That way you know exactly what you spent each year and can compare it from one year to the next.
Where to have it? An idea in Little Italy
If your team works downtown, one spot we like is Crystal Thani, a Thai kitchen + bar at 571 College St in Little Italy. The menu is built for sharing, which is exactly what you want at a staff party: a bunch of dishes in the middle and everyone digging in.
They host group dinners, birthdays and celebrations, plus private events. One rule to know: all parties need to be booked before 11 PM. The bar does cocktails like the Golden Lotus (Hennessy, Casamigos reposado and mango juice) and the Chilli Tam (mezcal, tamarind, lime and chilli), and there are spirit-free drinks for anyone who isn’t drinking or is driving home.
Would you rather celebrate at your own office? Crystal Thani has a buffet-style catering menu, with small trays for 4 to 6 people, medium for 8 to 10 and large for 15 to 20, and dishes like Pad Thai, Green Curry, Khao Soi and Spring Rolls.
A few tips so the night goes smoothly
Ask about allergies and dietary needs before you book. Thai cooking can include peanuts, shellfish, soy, fish sauce and coconut, and Crystal Thani asks guests to mention allergies before ordering. Several dishes can be ordered with tofu or vegetables for the vegetarians on your team.
If someone can’t handle spice, flag that too, because many dishes can be adjusted.
And if your crew is the type that doesn’t want the night to end early, Crystal Thani is open until 1 AM on Thursday and until 2 AM on Friday and Saturday. Just remember, the group booking has to be made before 11 PM.
Let’s talk about your numbers
BTM Financial works in English and Spanish with business owners across Canada, and we specialize in small and medium businesses. We’re the firm led by Miriam Banos, based at 291 King St W in Toronto, and we handle bookkeeping, personal and corporate taxes, GST/HST, payroll, budgets and cash flow. If you want to know how much you can spend on your company holiday party in Toronto without hurting your numbers, or how to record it properly, book your free consultation.
This article is general information and isn’t a substitute for professional advice on your situation.