Financial Policy

01Purpose and scope

This policy sets the financial standards under which North Star IT Services Ltd. operates. It covers how we quote work, raise invoices, apply Canadian sales taxes, accept payment, handle expenses, and pursue overdue balances. It applies to every client, partner, and supplier relationship.

Legal entity: North Star IT Services Ltd. (operating as Northstar IT).
BC Corporate Number: 742628431BC0001.
GST/HST: 742628431 RT0001.
BC PST: PST-1504-6324.

02Quoting and statements of work

Every engagement begins with a written quote or Statement of Work. Verbal estimates are non-binding. A quote includes:

• Scope of work described in plain language.
• Fixed price, hourly rate, or recurring fee as applicable.
• Assumptions and exclusions that frame the price.
• Estimated start and completion dates.
• Tax treatment for each line item.

Quotes are valid for 30 days from the date of issue. Pricing on Managed Care plans is held for the life of the agreement for founding clients (signing before September 1, 2026).

03Invoicing and billing cycle

All invoices are issued through QuickBooks Online and emailed in PDF form to the billing contact on file. Each invoice shows: invoice number, issue and due dates, itemised lines with tax codes, GST/PST registration numbers, and accepted payment methods.

04Taxes (GST and PST)

We are registered for and collect Canadian sales taxes as required.

PST-exempt lines (GST only)

• Custom programming and software development.
• Web design and digital deliverables.
• Consulting, management, and advisory labour.
• Mileage and travel time.

Clients outside British Columbia are billed GST at 5% and are not charged BC PST. Clients in other PST provinces (SK, MB, QC) are responsible for their own self-assessment where applicable. Tax-exempt entities must provide a valid exemption certificate before invoicing.

05Payment methods and terms

Accepted methods

• Interac e-Transfer to keegan@northstarit.ca (preferred, no surcharge).
• EFT or wire transfer to the operating account on file (no surcharge).
• Credit card (Visa, Mastercard, Amex) through QuickBooks Payments. A processing surcharge of 2.9% + $0.30 per transaction may be added to invoices over $1,000.
• Cheque, payable to "North Star IT Services Ltd." (mailed to the Prince George address on file).

Payment terms

Standard terms are Net 15 from invoice date. Monthly Care invoices are pre-authorised on the 1st of each month against a saved payment method. New clients may be required to provide a deposit or pre-authorisation before work begins.

Late payment interest accrues at 1.5% per month (19.56% per annum) on any balance outstanding past the due date. A flat $25 NSF or returned-payment fee applies to any reversed transaction.

06Expenses, travel, and mileage

Travel and mileage

• On-site work outside Prince George is billed at the standard CRA mileage rate or as specified in the SOW.
• Travel time is billed at 50% of the engineering rate for the technician dispatched.
• Accommodation, meals, ferries, and tolls are passed through at cost with receipts attached to the invoice.

Internal expense handling

• All vendor receipts are photographed at the point of purchase and submitted through the receipt-to-QuickBooks pipeline. The image is filed in Dropbox and attached to the QuickBooks expense entry.
• Receipts must show the vendor name, date, amount, tax breakdown, and what was purchased. Cardholder copies without tax detail are not sufficient.
• Expenses that look like client-billable items are flagged and reviewed for re-invoicing within the same monthly cycle.
• Mileage is logged per trip with start odometer, end odometer, purpose, and client (where applicable). A monthly mileage CSV is exported on the 1st of each month.

07Change orders and out-of-scope work

Anything beyond the scope of a signed SOW or Monthly Care plan requires written approval before work begins. Approval can be by signed change order, email, or ticket reply, but must be unambiguous and from an authorised contact at the client.

Emergency work performed without prior approval is billed at the standard hourly rate plus a 25% after-hours surcharge when performed outside business hours (Mon to Fri, 7:00 AM to 6:00 PM Pacific). The client is notified of cost as soon as practical and a follow-up change order is issued within one business day.

08Refunds, credits, and disputes

• Hardware that is unopened and resaleable may be returned within 14 days, less a 15% restocking fee plus any non-recoverable freight.
• Software and SaaS licences, once activated, are non-refundable. Annual subscriptions cancelled mid-term are pro-rated where the vendor allows it.
• Service hours already delivered are not refundable. Pre-paid hours unused at termination are refunded or credited at the rate paid, less any agreed minimums.
• Invoice disputes must be raised in writing within 10 business days of invoice date. Disputed line items are reviewed within 5 business days; undisputed lines remain due on the original due date.

09Overdue accounts and collections

10Recordkeeping and audit

All invoices, receipts, banking records, mileage logs, and tax filings are retained for a minimum of seven years, consistent with Canada Revenue Agency requirements. Records are stored in QuickBooks Online and Dropbox with redundant backups managed under the Northstar IT backup and disaster recovery standard.

Monthly bookkeeping hygiene runs automatically on the 1st of each month: GL reclassification, tax-code corrections, billable-expense flagging, duplicate vendor surfacing, missing GST registration warnings, and mileage reconciliation.

11Policy review

This policy is reviewed at least annually and after any material change to tax law, CRA guidance, or business circumstance. Material changes increment the version number. Previous versions are archived in the policy repository.

Questions: keegan@northstarit.ca or 672-983-1174.