How to Prepare Your Calgary Business for Tax Season

Tax season is a reality every Calgary business owner faces. But with the right preparation, it doesn't have to be a last-minute scramble. Here's a step-by-step guide to getting your business ready for tax filing.

1. Ensure Your Books Are Current

This is the foundation. If your bookkeeping is up to date — all transactions categorised, bank accounts reconciled, and financial statements prepared — tax preparation becomes straightforward. If you're behind, catch up now rather than waiting until the filing deadline.

2. Gather Your Tax Documents

Collect all relevant documents including: T3, T4, and T5 slips; RRSP contribution receipts; business income statements; receipts for deductible expenses; prior-year tax returns; and any CRA correspondence received during the year.

3. Review Your Deductions

Go through your expense accounts and ensure all legitimate deductions are captured. Common ones include: office expenses, vehicle costs, insurance premiums, professional fees, advertising, and business-use-of-home expenses. Make sure you have receipts or documentation for each.

4. Reconcile Your GST

If you file GST annually, now is the time to reconcile your GST collected and Input Tax Credits for the full year. If you file quarterly, verify that all four quarters were filed and the totals align with your annual revenue.

5. Review Payroll Year-End

If you have employees, ensure all T4 slips are prepared and filed by the February 28 deadline. Verify that source deductions match CRA's records and resolve any discrepancies before filing your corporate or personal return.

6. Coordinate with Your Accountant

If you use an accountant for tax filing, get your books and documents to them early. Accountants are swamped during tax season — the earlier you deliver clean, organised records, the faster your return gets filed.

7. Know Your Deadlines

For sole proprietors: personal tax returns are due June 15, but any balance owing is due April 30. For corporations: returns are due six months after fiscal year-end. Missing these deadlines triggers automatic penalties.

Make Next Tax Season Effortless

The best way to prepare for tax season is to keep your books current all year long. Castle Bookkeeping's monthly plans ensure your records are always tax-ready. Contact us today to get started.