How to Get Your Business Books Ready for Tax Season

Tax season tends to sneak up faster than most business owners expect. Between gathering receipts, balancing books, and double-checking records, it can quickly turn into a scramble—especially if your bookkeeping hasn’t been a top priority throughout the year.

But it doesn’t have to be stressful. A little preparation now can make your tax filing smoother, faster, and more accurate. Here’s a 5-step guide to get your business books tax-ready before the deadline.

1. Get Your Books Up to Date

Before you can file your taxes, your financial records need to be complete and accurate. Make sure every transaction from the 2025 tax year is recorded in your accounting system—sales, expenses, payroll, and any business-related loan payments or investments.

This is also the time to reconcile your bank and credit card accounts, ensuring every deposit and withdrawal matches your statements. Catching errors now, like missing payments or duplicate entries, will save you time (and potential CRA questions) later.

If you’ve fallen behind on bookkeeping, consider hiring an accountant or bookkeeper to help get your records up to date before filing season starts.

2. Organize Receipts and Documentation

The CRA expects every expense you claim to be supported by proper documentation. That means receipts, invoices, and statements for:

• Office supplies and equipment

• Business travel, meals, and entertainment

• Vehicle and home office expenses

• Utilities, insurance, and rent

If you haven’t been keeping up with receipt management, now’s the time to organize everything—either digitally or physically. Apps like Hubdoc, Dext, or QuickBooks Online can automatically store and categorize receipts for easy access during tax time.

3. Review Accounts Receivable and Payable

Take a close look at what’s owed to you and what you still owe.

• Accounts receivable: Follow up with clients who have outstanding invoices so you can record payments in the correct year.

• Accounts payable: Ensure all unpaid bills are entered into your system and plan your payments strategically to maintain healthy cash flow.

This review gives you an accurate year-end picture of your finances and helps ensure income and expenses are reported in the right tax period.

4. Prepare for Payroll and Year-End Reporting

Payroll accuracy is critical during tax season. Review your employee and contractor payments to confirm that all wages, bonuses, and deductions have been correctly recorded.

Make sure you’ve:

• Submitted all CRA payroll remittances (CPP, EI, and income tax)

• Calculated any year-end bonuses or adjustments

• Started preparing T4 slips for employees and T5 slips for shareholders

Even small payroll errors can lead to compliance issues, so it’s best to tackle this early before the deadlines approach.

5. Meet with Your Accountant Early

Once your books are clean and organized, it’s time to bring in the experts. Meeting with your accountant before the rush of tax season allows them to:

• Identify additional deductions or tax-saving opportunities

• Review your depreciation schedule for capital assets

• Ensure you’re fully compliant with CRA reporting rules

The earlier you meet, the more time you’ll have to make adjustments before filing and the less stressful your spring will be.

Get ready for tax season!

Getting your business books ready for tax season doesn’t have to be overwhelming. By staying organized, reconciling accounts, preparing payroll, and consulting your accountant early, you’ll make filing your taxes a breeze and start the year ahead on solid financial footing.

Need help catching up on bookkeeping or organizing your records for tax season? Our accounting team can handle the details so you can focus on running your business. Contact us today to get started.