Year-End Tax Checklist for BC Small Businesses

As your fiscal year draws to a close, the most effective thing a BC small business owner can do is gather records systematically, reconcile accounts before filing deadlines, and identify planning opportunities before the year-end date passes. This checklist is organized by category so you can work through it in sequence — or hand it directly to your accountant. A downloadable version is available from EverStone CPA — ask at your year-end review.

1. Corporate and business information

• Prior year's Notice of Assessment (federal and BC) and any reassessments

• Prior year's financial statements and T2 return

• Current-year articles of incorporation or share-structure changes

• Minute book (up to date for director and shareholder resolutions)

• Any new loans, leases, or financing agreements

2. Income and revenue records

• Complete sales invoices or billing records for the full year

• Accounts receivable listing at year-end

• Deposits received in advance of work performed (deferred revenue)

• Interest income from business accounts

• Records of any asset disposals — proceeds, original cost, date

• Government grants or subsidies received

3. Expense and deduction records

• All business receipts, organized by category

• Accounts payable listing at year-end

• Rent or lease agreements and payments

• Vehicle expenses plus a mileage log if claiming personal-use allocation

• Home-office calculation if applicable

• Meal and entertainment receipts — only 50% of eligible amounts are deductible (confirm for the current tax year)

• Professional dues, memberships, licensing fees

• Software subscriptions and technology costs

4. Capital assets and CCA

• List of all equipment, vehicles, and tools purchased — cost, date, new or used

• Updated fixed-asset schedule from the prior year

• Any assets disposed of — original cost, undepreciated capital cost, proceeds

• Lease vs. purchase decisions — confirm treatment with your accountant

5. Payroll, T4s, and T5s

• Payroll summary for all employees — gross wages, CPP, EI, income tax deducted

• Bonuses, vacation pay, or taxable benefits paid or accrued

• T4 slips — filed with CRA and distributed by the last day of February following the calendar year (confirm for the current tax year)

• T5 slips for dividends — same February deadline

• Management fees paid to related parties

• Subcontractor payments — confirm whether T4A slips are required

6. GST/PST reconciliation

• All GST remittance records and filed returns

• Input tax credit claims — supporting invoices on file

• Reconciliation of GST collected to total revenue

• BC PST collected and remitted correctly if you sell taxable goods or services

• Any outstanding GST/PST instalments or balances

7. Shareholder loans and owner transactions

• Shareholder loan account balance at year-end

• Personal expenses paid by the corporation — properly classified to avoid CRA adjustment

• Confirm any shareholder loan owing to the corporation is repaid within one year of year-end (confirm for the current tax year) to avoid income inclusion

• Salary or dividend mix paid to owner-operators

8. Key deadlines to note

• Item — Typical deadline

• T4 and T5 slips filed and distributed — Last day of February following the calendar year

• T2 balance owing — most CCPCs — 2 months after year-end; 3 months for eligible CCPCs

• T2 return filing — 6 months after fiscal year-end

• GST annual return (if applicable) — 3 months after fiscal year-end

• Shareholder loan repayment — Within 1 year of the corporation's year-end

• Personal T1 balance due — April 30; June 15 filing for self-employed, interest from April 30

All deadlines above: confirm for the current tax year. Missing the balance-due date — even if your return is filed on time — results in interest charges.

9. Planning items to review with your accountant

• Is the salary/dividend mix still optimal given this year's earnings?

• Any opportunity to defer income or accelerate deductible expenses before year-end?

• Should equipment purchases be made before or after year-end?

• Are there personal RRSP contributions to consider?

• Is the business eligible for the Small Business Deduction, and has the active business income calculation been reviewed?

Frequently asked questions

When should I start preparing for year-end?

Ideally six to eight weeks before your fiscal year-end date, so you can identify gaps, make timing decisions, and book your accountant before busy season.

Do I need to file a return if my corporation had no activity?

Yes. A corporation incorporated in Canada must file a T2 every year, even with no revenue. Late-filing penalties apply regardless of whether tax is owed.

What records must I keep, and for how long?

Most business records must be kept at least six years from the end of the relevant tax year; capital-property records, longer (confirm for the current tax year).

Ready to get your year-end in order? EverStone CPA in Abbotsford offers a free 30-minute year-end review for small businesses in the Fraser Valley. We identify what is missing and flag remaining planning opportunities. Book at everstonecpa.com.

Written by Sunny Dhillon, CPA · EverStone CPA, Abbotsford · Last updated: June 2026. General information, not advice for your specific situation. For CRA rules, see canada.ca.

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• Salary vs dividends for BC business owners