Preparing Your Business for Tax Season: A Bookkeeper’s Checklist
- Sherry Hergott
- Feb 24
- 2 min read
Tax season can feel overwhelming, but with proper preparation, it doesn’t have to be. As a business owner, staying organized and proactive can save you time, stress, and potentially money. Here’s a simple yet effective checklist to help you get your financials in order for tax time:
1. Organize Your Financial Records
Ensure all financial records are up-to-date and accurately recorded. This includes:
Income statements (Profit & Loss)
Balance sheets
Bank and credit card statements
Receipts for business expenses
If you use accounting software like QuickBooks Online or Sage, run your reports and review for any inconsistencies.
2. Reconcile All Accounts
Reconcile your bank accounts, credit cards, and any loan accounts to make sure your books match your statements. Unreconciled transactions can lead to errors and missed deductions.
3. Review Income and Expenses
Double-check that all income has been recorded and categorized correctly. Ensure business expenses are properly documented — remember, clear records can support your claims in case of an audit.
4. Gather Payroll Information
If you have employees or contractors, gather the following:
Employee T4 slips or contractor T5018s
Records of payroll taxes remitted
Any year-end bonuses or benefits paid out
For those using QBO Payroll, ensure all employee data is accurate, especially if you transitioned from another system mid-year.
5. Confirm Tax Deductions and Credits
Make a list of tax-deductible expenses such as:
Home office expenses (if applicable)
Business travel and meals
Professional fees (like bookkeeping services!)
Software subscriptions
Work with your accountant to identify any tax credits your business may qualify for.
6. Prepare for GST/HST Filing
If your business has crossed the tax threshold or is already registered, confirm:
GST/HST collected on sales
Input tax credits (ITCs) for eligible expenses
Due dates for your filings
7. Review Accounts Receivable and Payable
Follow up on any outstanding invoices and ensure your payables are up to date. Knowing what’s owed to and by your business keeps cash flow steady.
8. Consult with Your Accountant or Bookkeeper
Set a meeting with your accountant or bookkeeper (that’s me!) to review your financials, ask any questions, and discuss strategies for minimizing tax liability.
Tax season doesn’t have to be stressful — a little preparation goes a long way. If you need help organizing your books, reconciling accounts, or getting ready for your tax filings, reach out today. Let’s make this tax season smooth and simple for your business!
Comments