Year-End Bookkeeping Checklist for Canadian Small Businesses

Every year around November, I start having the same conversation with clients: "Let's get ahead of year-end." Some listen. Some call me in a panic in February. Don't be the February call.

October-November: Get Ahead

These are the tasks to knock out while you still have time:

• Reconcile all accounts through October: Bank accounts, credit cards, lines of credit, loans. Everything should match to the penny.
• Review your accounts receivable: Who owes you money? Is any of it more than 90 days old? Time to chase those invoices or write them off.
• Clean up accounts payable: Make sure all bills are recorded. Check for anything you've paid but haven't entered.
• Review your chart of accounts: Are there categories you're not using? Expenses landing in the wrong place? Now's the time to tidy up.
• Gather missing receipts: The CRA requires documentation for all business expenses. If you're missing receipts, try to get duplicates from vendors now, not in April.

December: Close the Year Strong

• Record all December transactions: Don't leave anything for January. Every sale, every expense, every payment should be in the books by December 31.
• Process final payroll: Make sure all employee wages, vacation pay, and deductions are recorded for the calendar year.
• Accrue expenses: If you've received goods or services in December but won't get the bill until January, record an accrual. This keeps your financials accurate.
• Review loan balances: Confirm that your QuickBooks balances match your lender statements. Split principal and interest correctly.
• Take inventory: If your business carries inventory, do a physical count on or near December 31. Your closing inventory number directly affects your cost of goods sold and your taxable income.

January: Prepare for Filing

• Final reconciliation of all December accounts: This is non-negotiable. Every account, reconciled, matching the bank.
• Prepare T4s and T4As: Employee T4 slips are due by the last day of February. T4A slips for subcontractors are due the same day.
• File Q4 HST return: If you're a quarterly filer, this is due January 31.
• Run year-end financial statements: Profit and Loss, Balance Sheet, and Trial Balance for the full fiscal year.
• Package everything for your accountant: Financial statements, bank statements, loan statements, investment statements, asset purchase receipts, and any other supporting documents.

Key CRA Deadlines

• February 28: T4 and T4A filing deadline
• March 31: Annual HST return due (for December year-end filers)
• April 30: Personal income tax return deadline (sole proprietors)
• June 15: Self-employed income tax filing deadline (but any balance owing is still due April 30)
• Six months after fiscal year-end: Corporate tax return deadline

The Cost of Not Preparing

Last year, a new client came to me in March with a full year of unreconciled books. His accountant was charging a $1,500 premium for the cleanup work, and he still missed his HST filing , resulting in $800 in penalties. That's $2,300 that proper year-end prep would have prevented.

If you start this checklist in October, year-end becomes a smooth process instead of a fire drill. And if you want someone to handle it all for you, that's literally what I do. Reach out before November and we'll have you set up well before the deadlines hit.