Tax preparation starts well before a return is filed. For a Calgary business, the most useful first step is to bring the year’s financial records into one organized set so the amounts reported can be traced to invoices, statements and supporting documents.
This checklist explains the records a business owner can assemble before a tax-preparation meeting. It is general information, not advice for a particular tax situation. The documents needed will depend on the business structure, transactions and accounts involved.
Start with the business and tax-year details
Confirm the legal business name, business number, mailing address and the dates covered by the return. Corporations should also confirm their fiscal year-end. If the business opened, closed, incorporated or changed ownership during the year, note the relevant dates and bring the related registration or corporate documents.
- Legal business name and business number
- Tax year or corporate fiscal year-end
- Contact and mailing information
- CRA correspondence received during the year
- Notices of assessment or reassessment from the previous filing
- Details of any ownership or business-structure changes
Organize revenue records
Revenue records should explain how the business earned money during the year. Depending on the business, this may include sales reports, issued invoices, payment-platform statements, deposit records and other income documents. Compare the totals with the accounting file and bank deposits, and flag any differences for review.
- Sales summaries and issued invoices
- Bank and payment-processor statements
- Point-of-sale reports
- Contract or project income records
- Government assistance or other income documents, where applicable
- Accounts receivable listing at year-end
Prepare expense and purchase support
Expense totals should be supported by records that show the vendor, date, amount and business purpose. Keep personal transactions separate and identify any mixed-use costs that need to be reviewed. Large purchases such as computers, vehicles, equipment or leasehold improvements should be listed separately from day-to-day operating costs.
- Supplier bills, receipts and credit-card statements
- Rent, utilities, insurance and software records
- Vehicle logs and vehicle-cost documents, if relevant
- Travel records showing the business purpose
- Loan and interest statements
- Asset purchase and disposition documents
- Accounts payable listing at year-end
Include payroll and sales-tax records
If the business has employees, assemble payroll summaries, remittance records and year-end slips. If it has a GST/HST account, include the returns filed for periods that overlap the tax year, along with the sales-tax reports from the accounting system. Differences between the general ledger and filed returns should be identified before the tax return is prepared.
KL Accounting also provides separate payroll support and GST filing support for Calgary businesses.
Reconcile the year before filing
Review each business bank and credit-card account through the final statement date. Confirm that the accounting records include outstanding cheques, deposits in transit, loan balances and transactions recorded near year-end. A current bookkeeping file makes questions easier to identify and resolve before preparation begins.
If the books are incomplete, start with bookkeeping services or accounting support before the tax-preparation stage.
Keep records after the return is filed
The Canada Revenue Agency states that records must contain enough detail to determine tax obligations and entitlements. Its general guidance says business records are normally kept for six years from the end of the last tax year to which they relate, unless permission is received to destroy them earlier. Electronic records should remain readable and backed up.
Read the CRA’s current guidance on keeping business records and electronic record keeping. CRA guidance may change, so confirm the current requirements for the year and situation involved.
Final review checklist
- All business accounts are reconciled to the year-end date.
- Revenue totals can be traced to invoices, sales reports or deposits.
- Expense totals have receipts, bills or other supporting documents.
- Personal and business transactions are separated.
- Payroll and GST/HST records agree with the accounting file or differences are noted.
- Asset purchases, loans and unusual transactions are listed for review.
- CRA letters and prior-year assessment documents are included.
Tax preparation support in Calgary
KL Accounting & Tax Associates helps Calgary business owners organize year-end information and prepare corporate and personal tax returns based on the records provided. We can identify missing information, explain the preparation process and outline the next documents needed for the file.
For help with a business return, review our corporate tax filing service or book an appointment.
