Year-End Accounting Checklist for BC Small Businesses
Why Year-End Planning Matters
The end of your fiscal year sets the stage for a smooth tax season and a clear financial picture. Early preparation helps you spot discrepancies, optimize deductions, and avoid last-minute stress. Following this checklist ensures you close the books accurately, meet CRA deadlines, and position your business for growth.
1. Review Your Business Structure
Your legal entity dictates filing deadlines and tax rates:
Sole Proprietorship: Personal T1 due April 30 (June 15 to file, taxes owe by April 30)
Corporation: T2 due six months after fiscal year-end, taxes payable within two months (three for CCPCs)
Confirm your structure still aligns with profit goals and liability preferences.
2. Gather and Reconcile Financial Statements
Export profit & loss, balance sheet, and cash-flow reports from your accounting software
Reconcile bank, credit-card, and loan accounts to statement balances
Investigate and clear any uncleared transactions or discrepancies
Accurate statements form the backbone of reliable tax filings and management decisions.
3. Review Receivables and Payables
Send reminders for overdue invoices and write off truly uncollectible accounts
Review vendor bills: ensure all expenses are recorded
Accrue any unbilled income or expenses to match the period
This step sharpens your working-capital picture and uncovers hidden cash-flow drains.
4. Update Fixed Asset Records
Add new assets and remove fully depreciated or sold assets
Calculate depreciation or CCA for capital assets based on CRA classes
Document any dispositions, capital improvements, or impairment
Proper CCA tracking maximizes deductions without triggering audit flags.
5. Plan for Income Taxes and Instalments
Estimate taxable profit and calculate instalment requirements for next year
Identify one-time deductions
Project personal vs. corporate tax burdens if you’re a CCPC owner
Early tax planning can reduce instalment surprises and improve cash-flow forecasting.
6. Evaluate Key Financial Ratios
Current Ratio: Current Assets ÷ Current Liabilities
Target: ≥ 1.5
Gross Profit Margin: (Revenue–COGS) ÷ Revenue
Target: 25% – 60%
Days Sales Outstanding: (AR ÷ Revenue) × 365
Target: ≤ 45 days
Debt-to-Equity Ratio: Total Liabilities ÷ Equity
Target: ≤ 1.0
Analyzing these ratios highlights operational strengths and areas needing attention.
7. Engage Your CPA for Final Review
A CPA can:
Verify tax-saving opportunities unique to BC businesses
Review year-end journal entries and financial footnotes
Advise on shareholder dividends vs. salary planning
Handle T2 and T1 filings, CRA correspondence, and audit support
Prepare compilation financial statements for management and stakeholders
Partnering early with a CPA reduces errors and positions you for proactive growth.
Next Steps & Resources
Tick off each checklist item at least one month before your fiscal year-end.
Schedule a year-end review with Michael Martin, CPA: Book Your Consultation.
Start closing your year with confidence—your future self will thank you!