Getting Ready for Tax Season: A Checklist for Small Business Owners
For most business owners, tax season arrives faster than expected. One week you're busy serving customers, the next you're digging through emails looking for a receipt from last March. The good news is that a little preparation goes a long way.
Here's a simple checklist to work through before you sit down with your accountant.
1. Get your books up to date
Make sure every month of the year has been recorded and reconciled against your bank and credit card statements. If you're a few months behind, now is the time to catch up – it's much easier than doing it all in April.
2. Gather your income records
- Sales reports and invoices issued
- Bank deposits that aren't sales (loans, owner contributions, refunds)
- Any T4A or T5 slips you received
3. Organise your expenses
Keep receipts for everything you plan to claim. Common categories include rent, utilities, phone and internet, vehicle costs, advertising, professional fees, insurance and office supplies. If you use your home or vehicle for business, keep a record of how much is business use.
4. Review your HST/GST filings
Check that your sales tax returns for the year match your books. Differences are easy to fix now and much harder to explain later.
5. Look at payroll and owner pay
Confirm that your T4 slips match what was paid during the year, and talk to your accountant about how you paid yourself – salary, dividends or drawings all have different tax results.
6. Note any big changes
Did you buy equipment, a vehicle or property? Take on a loan? Hire your first employee? These all affect your return, so make a list to share with your accountant.