The fiscal year is coming to an end and the time has come to fill out your business tax returns! However, new entrepreneurs may find it difficult to know where to start when this time of the year arrives.
To help you through this process, our team of tax accountants has prepared a 5-point checklist for your corporate taxes!
1 - Make sure all transactions are accounted for
While this may seem obvious, the first step is to make sure that all your transactions have been properly recorded for the taxable year. Also make sure that you have all the receipts to support these transactions.
Online accounting software can be a great help in this regard. You can enter all the necessary information into the software, knowing that it will remain secure.
2 - Perform a bank reconciliation
A bank reconciliation is required to ensure that the figures recorded in your accounting records match what is displayed in your business bank account. If you detect any discrepancies, you can update your accounting records.
3 - Review your corporate financial statements
Once your bookkeeping has been properly updated, you will need to review your financial statements before sending in your business tax return. Review each number and see if any don't make sense. For example, negative or unbalanced account balances are signs that there may be an error in your forms.
If this happens and you can't identify the error in the software, you can always enlist the help of a tax accountant to review your small business financial statements.
4 - Check your accounts payable and receivable
Another important step to take at the end of the fiscal year is to thoroughly review the status of your accounts receivable and payable. Throughout the year, make sure you keep all your invoices to verify that they have all been paid. This allows you to follow up on any customer who has not paid an invoice.
At the same time, you also need to make sure that you have paid all the invoices you have been sent during the fiscal year. Another good habit to develop is keeping all these invoices and proofs of payment in order to avoid any problems at the end of the year. If you realize that you inadvertently missed a payment, pay it as soon as possible.
5 - Revisit your year in review and think about how to improve
Once you have finished recording and reviewing your numbers, take some time to reflect on the results you have achieved during this fiscal year. Did you achieve your goals? What could you do to make your business grow even more? The numbers will speak for themselves and help you develop your tax plan for next year!
T2inc, the simplest solution to end your fiscal year on a high note!
The end of the fiscal year is a rather busy time for business managers, but it also allows you to take stock of your year and see how you can develop as a company.
At T2inc, we support entrepreneurs and SMEs in their corporate tax returns with our unique software solution. Would you like to receive help from our experts? Request your free quote today!
Frédéric Roy-Gobeil
CPA, M. TAX
As President of T2inc.ca and an entrepreneur at heart, I have founded many start-ups such as delve Labs and T2inc.ca. A former tax specialist at Ernst & Young, I am also a member of the Ordre des comptables professionnels agréés CPA and have a master's degree in taxation from the Université de Sherbrooke. With a passion for the world of entrepreneurship and the growth mindset, I have authored numerous articles and videos on the industry and the business world, as well as on accounting, taxation, financial statements and financial independence.
