Confirm The Scope And Dates
Start by confirming your corporation’s fiscal year-end and the work you need completed. Bookkeeping adjustments, financial statements, corporate tax preparation, and other filings can involve different deliverables and responsibilities. Agree on the scope before assuming one engagement includes everything.
Ask your professional to confirm the filing and payment dates that apply to your corporation. Those dates are not always the same. Share any CRA correspondence promptly, especially if it mentions an amount owing, a review, or a deadline.
Bring The Core Records Together
Provide access to the accounting records through an agreed secure method. Include complete statements and supporting schedules, rather than relying only on the year-end balances displayed in your software. Prior-year records can help explain opening balances and recurring adjustments.
- Bank, credit card, loan, and payment processor statements.
- The previous corporate return, notice of assessment, and year-end records.
- Customer and supplier balances, with notes on old or disputed amounts.
- Payroll and sales tax records relevant to the agreed scope.
- Invoices and agreements for major purchases, financing, or disposals.
Review Balances That Need An Explanation
Check that bank and credit card accounts reconcile to statements. Review unpaid customer invoices and supplier bills, and identify entries that are duplicated, incorrectly dated, or missing support. Explain unusual transactions before the year-end questions arrive.
Tell your professional about inventory, equipment additions or sales, new financing, business changes, and transactions with shareholders or related businesses. Do not decide the accounting or tax treatment from the bank description alone. The underlying agreements and business purpose matter.
Keep Owner Transactions Clear
List amounts paid into the corporation by owners, amounts withdrawn, and business expenses paid personally. Distinguish these from ordinary customer receipts and supplier payments so they can be reviewed properly.
Discuss compensation and shareholder balances with your professional using complete information. The appropriate treatment depends on the facts; avoid assuming that a transfer is automatically salary, a dividend, a deductible expense, or a tax-free repayment.
Agree On Questions, Review, And Authorization
Use one open-items list to track questions, missing documents, who is responsible, and the target response date. Before filing, review the deliverables and ask for an explanation of significant balances, adjustments, and amounts payable. Confirm how you will provide the required authorization.
Keep the final records and supporting documents organized after year-end. CRA generally requires relevant business records to be retained for at least six years from the end of the last tax year to which they relate; exceptions can require longer retention. Check the CRA guidance and your circumstances before destroying records.
Make Next Year Easier
After the year-end is complete, identify the two or three issues that caused the most delay. A recurring document routine, clearer owner transaction records, or regular reconciliations may prevent the same questions next time.
Caliber can help define a year-end preparation plan and the corporate tax services you need. For the first conversation, have your fiscal year-end, current bookkeeping status, and any approaching deadlines ready.
Further Reading
This guide provides general information. The appropriate accounting or tax treatment depends on your circumstances and the scope agreed with your professional.
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