Year-End Accounting Checklist for Canadian Businesses
Complete year-end accounting checklist to close your books properly, prepare for tax season, and start the new year organized.
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Key Takeaways
- Start year-end preparation at least 30 days before fiscal year-end
- Reconcile all bank and credit card accounts
- Review accounts receivable for bad debts
- Ensure all expenses are recorded before closing
Year-end accounting ensures your books are accurate for tax filing and gives you a clean start for the new fiscal year. Use this checklist to close your books properly.
Bank & Account Reconciliation
- Reconcile all bank accounts through year-end
- Reconcile credit card statements
- Reconcile PayPal, Stripe, and other payment accounts
- Clear any outstanding reconciling items
Accounts Receivable
- Send final invoices for work completed
- Follow up on outstanding payments
- Review aged receivables for bad debts
- Write off uncollectible accounts
Bad Debt Write-Off
If an invoice is over 180 days unpaid and you have made collection efforts, you may be able to claim it as a bad debt expense.
Inventory (If Applicable)
- Conduct physical inventory count
- Adjust for damaged or obsolete items
- Calculate cost of goods sold
- Document inventory valuation method
Expenses & Payables
- Record all December expenses
- Accrue for expenses incurred but not yet invoiced
- Review prepaid expenses
- Verify accounts payable balances
Fixed Assets
- Update asset register with new purchases
- Remove disposed assets
- Calculate depreciation/CCA
Final Steps
- Review year-over-year comparisons
- Generate year-end financial statements
- Back up accounting data
- Prepare documents for tax preparer
Important Deadline
Corporate tax returns are due 6 months after fiscal year-end. Sole proprietors file with personal taxes by April 30 (June 15 for self-employed, but payment still due April 30).
Need Year-End Help?
Tax Punjabi can guide you through the year-end process. Contact us!