How to Get Ready for Year-End With Your Accountant: A Checklist

Oct 14

5 min read

Your fiscal year-end is when twelve months of transactions become financial statements and tax returns. Your accountant does that work, but what you hand over shapes how long it takes, how many questions come back and how much you can rely on the final numbers.

Most of the preparation is organizing, not accounting. Whether your year ends on December 31 or in another month, start a few weeks before the year-end date and use this checklist so you arrive with a complete, tidy file.

Know your year-end and the deadlines that follow

Your year-end sets the timetable for most of your filings. At the time of writing, the main deadlines are:

Sole proprietors: self-employed individuals generally have to use a December 31 year-end. Their income tax return is due June 15, but any balance owing must be paid by April 30.
Corporations: the T2 return is due within six months of the end of the tax year. The balance of tax is generally due two months after year-end, or three months for some Canadian-controlled private corporations that meet the conditions.
Alberta corporations: a corporation with a permanent establishment in Alberta also files an Alberta corporate income tax return (AT1) within six months of year-end, unless it qualifies for an exemption.
Payroll slips: T4 and T4A slips must be filed with the Canada Revenue Agency (CRA), and given to employees or other recipients, by the last day of February after the calendar year they cover.
GST/HST: monthly and quarterly filers file and pay one month after each reporting period. Annual filers generally file and pay three months after year-end, but individuals with business income and a December 31 year-end pay by April 30 and file by June 15.

Put every date in one calendar, along with your corporate registry annual return if you are incorporated, which is separate from your tax filings. If a CRA due date falls on a weekend or public holiday, your filing is considered on time if the CRA receives it, or it is postmarked, by the next business day.

Bring your bookkeeping up to date

Your accountant works from your books, so close the gaps first:

Record every sale and expense up to the year-end date, including cash sales and payments through online platforms.
Reconcile each bank, credit card and loan account to its statements, month by month.
Clear out "uncategorized" or "ask my accountant" entries, adding a short note where you are unsure.
Separate personal and business transactions, and list any business costs you paid personally.
List customer invoices that are still unpaid at year-end, and flag any you do not expect to collect.
List the bills you owe at year-end, so your accountant can record expenses in the right year.

Gather the records your accountant will ask for

Many accountants send their own checklist. Having these ready saves a round of emails:

Bank, credit card and loan statements for the full year, including the year-end month
Sales records, supplier invoices and receipts, filed by month or by category
Invoices for major purchases such as equipment, vehicles and computers. These are generally not deducted like everyday expenses; they are claimed through capital cost allowance (CCA), and the rules depend on the type of asset.
A vehicle logbook if you use a vehicle for business, with the date, destination, purpose and kilometres of each business trip, plus odometer readings at the start and end of the fiscal year
The size of your workspace and your household costs, if you run the business from home
Last year's financial statements and tax returns, notices of assessment and any CRA letters
For corporations, records of salary or dividends paid to shareholders and any money moved between you and the company

Close out inventory, payroll and sales taxes

Some areas need their own year-end steps:

Inventory: if you sell goods, do a physical stock count at year-end (or regular counts if you use a perpetual inventory system) and keep a written record of each count.
Payroll: compare the CPP contributions, EI premiums and income tax in your payroll records with the remittances you sent to the CRA, and resolve any difference before you prepare T4 slips. Check each employee's details as well. If you file more than five slips for a calendar year, you must file them electronically.
Workers' compensation: in Alberta and Saskatchewan, employers with a WCB account report their annual payroll to the board by the end of February.
GST/HST: match the GST/HST you collected and the input tax credits you claimed against your returns. Before you claim an input tax credit, you need supporting documents, such as supplier invoices that show the correct information. If you are registered for Saskatchewan PST, reconcile those returns the same way.

Make the most of your accountant meeting

Book early. Year-end and tax season are busy, so agree on a timeline and on how you will share records, such as read-only access to your accounting software or a shared folder.
Authorize your accountant with the CRA if they need to view or manage your business accounts. The fastest way is through My Business Account; your accountant can also send a request through Represent a Client for you to confirm.
Summarize the year's changes: new locations, new employees, major purchases, new loans, sales in another province or a change in ownership.
Bring your questions, such as whether you need to make tax instalment payments, which records were missing this year and what to change in your bookkeeping.

After year-end: set up a smoother next year

Record your accountant's adjusting entries so your books match the final statements, then lock the closed period in your software if it allows it.
Keep your records, generally for six years from the end of the last tax year they relate to. Some records must be kept longer.
Set a monthly routine for reconciliations and receipts, so next year's preparation is lighter.
Move money for income tax, GST/HST and payroll remittances into a separate account as you go, so payments do not come as a surprise.

How First Global Citizen can help

We help small businesses get organized for year-end: setting up simple bookkeeping routines and checklists, organizing records, building a calendar of filing dates and providing admin support, so your accountant receives a complete, well-organized file. We are not an accounting firm and do not prepare tax returns or financial statements. When you need tax or accounting advice, we coordinate with your accountant or with independent licensed professionals.

Every engagement starts with a written proposal and a fixed fee, and any government or registry fees are charged at cost. To build these skills yourself, explore our self-paced online courses, including one on managing money and budgets, or book a free consultation to plan your year-end.

This article is general information only. It is not legal, tax, accounting or financial advice. Fees and requirements can change, so confirm current details with the relevant government agency or registry. For advice about your situation, consult a qualified professional.