Get accurate financial statements for your corporate tax returns

More than a legal requirement, financial statements provide a clear picture of your company's financial health. They help evaluate profitability, liquidity, and solvency, while supporting informed decision-making to adjust business strategies and optimize management.

In addition to guiding internal management, financial statements are essential for meeting tax obligations. They are required for filing T2 corporate tax returns in Canada or CO-17 corporate tax returns in Quebec and ensure that the company is in compliance with the tax authorities. Proper management of financial statements reduces the risk of penalties or unexpected audits.

These documents are also useful in securing additional funding by demonstrating your company's financial strength to investors, lenders and partners.

For a more comprehensive view of our services, visit our Business Accounting section to discover how we can support your financial growth.

A company's three main financial statements are the balance sheet, income statement, and cash flow statement. Each plays an important role in evaluating a company's financial health.

• The balance sheet: This document shows the company's financial position as of a specific date. It lists assets (what the company owns), liabilities (what it owes), and equity (the net worth of the company). It visualizes the balance between resources held and debts to be repaid.
• The income statement: This document shows the company's performance over a period of time. It details revenues, expenses, and net profit or loss, allowing the company's profitability and profit generation to be evaluated.
• The cash flow statement: This document tracks the movement of cash within the company. It shows cash inflows and outflows related to operating, investing, and financing activities. This statement is essential to understanding the company's ability to generate cash, repay debt, and fund operations.

Together, these three statements provide a complete picture of a company's financial position and enable strategic decision-making.
 

Reading a financial statement involves analyzing three main reports: the balance sheet, the income statement, and the cash flow statement.

• The balance sheet shows the company's financial position at a given point in time by listing assets, liabilities, and equity. This document helps to understand what the company owns and what it owes.
• The income statement measures the company's performance over a period of time. It details revenues, expenses, and net income, allowing an evaluation of the company's profitability.
• The cash flow statement tracks the movement of cash within the company, whether from operating, investing, or financing activities. This document is essential for assessing the company's ability to generate enough cash to meet its obligations.

By reading these three reports, you can get an overview of the company's profitability, solvency and financial strength, as well as its ability to grow and repay debt. If you need your financial statements reviewed and attested, our accountants offer CPA-signed attestation services, including compilation, review, or audit engagements, depending on your needs.

Financial statements should be prepared at the end of each fiscal year for your business. Generally, companies choose a fiscal year that matches the calendar year, but this can vary based on the specific needs of the company.

Preparing annual financial statements is essential for evaluating your company's financial performance, complying with tax obligations, and preparing corporate tax returns (T2 or CO-17). In some cases, quarterly or monthly financial statements may be required for companies that require more regular tracking, such as cash flow monitoring or investor reporting.

Regular financial reporting allows you to anticipate potential financial problems and make more informed decisions for business management and growth. For smooth and regular accounting management, discover our bookkeeping service.

Outsourcing this task allows you to benefit from the expertise of qualified accountants who will ensure that your documents comply with current accounting standards. This outsourcing guarantees maximum accuracy, which is essential for the preparation of reliable financial reports and for complying with your tax obligations, such as corporate tax returns (T2 or CO-17).

By delegating this task to professionals, you save time to focus on the day-to-day management and strategic development of your business. It also reduces the risk of accounting errors or non-compliance that could lead to penalties or audits.