The 7 Most Expensive Corporate Year‑End Mistakes — And How Businesses Can Avoid Them

Corporate year‑end shouldn’t feel like a scramble, yet for many businesses it becomes exactly that, a rush of paperwork, uncertainty, and unexpected tax bills. The truth is that most costly year‑end problems are completely avoidable with the right planning and guidance.

These are the seven mistakes that quietly drain money, time, and peace of mind from local corporations every year, and how your business can stay ahead of them.

1. Missing Tax Planning Opportunities Before Year‑End

Many owners wait until after their fiscal year is over to think about taxes. By then, the most valuable planning tools; bonuses, dividends, capital cost allowance timing, and owner‑manager compensation strategies are no longer available. Avoid it: Meet with your accountant before year‑end to lock in tax‑efficient decisions while the window is still open.

2. Poorly Prepared Books Leading to Higher Accounting Fees

Messy or incomplete bookkeeping is one of the biggest drivers of higher year‑end costs. When your accountant has to clean up the books before preparing a compilation or tax return, the bill naturally rises.

Avoid it: Keep monthly records up to date and reconcile key accounts (bank, credit cards, GST/HST) regularly.

3. Not Tracking Shareholder Loans Properly

Improper shareholder loan balances can trigger unexpected taxable benefits under s.15(2). Many owners don’t realize they’ve drifted into a problem until it’s too late.

Avoid it: Review shareholder loan activity throughout the year and ensure repayments or dividends are planned correctly.

4. Missing GST/HST Adjustments or Filing Errors

GST/HST is one of the most common sources of CRA notices. Year‑end is the ideal time to reconcile filings, input tax credits, and adjustments.

Avoid it: Perform a full GST/HST reconciliation at year‑end to catch issues before CRA does.

5. Incorrect Payroll Remittances or T4/T5 Timing Problems

Late or incorrect payroll remittances lead to penalties that add up quickly. T4 and T5 slips also create stress when they’re rushed or inaccurate.

Avoid it: Confirm payroll remittances monthly and prepare slips early rather than waiting until February.

6. Not Planning for Corporate Cash Flow Around Tax Deadlines

Even profitable businesses can feel cash‑flow pressure if they don’t plan for corporate tax instalments or balances owing.

Avoid it: Build a simple tax‑cash‑flow forecast so you’re never surprised by a payment deadline.

7. Treating Year‑End as a Compliance Task Instead of a Strategic Review

Year‑end isn’t just about filing, it’s a chance to evaluate structure, compensation, profitability, and long‑term planning.

Avoid it: Use year‑end as an annual “business checkup” to identify opportunities, risks, and tax‑efficient strategies.