December gets busy. Between jobs, holidays and family, the books are usually the last thing on your mind.
But a little cleanup now saves you a lot of stress (and accounting fees) later. Here's a simple checklist to work through before December 31.
1. Catch up on your bookkeeping
Start here. Everything else on this list is easier when your books are up to date.
Make sure every sale and every expense for the year is recorded. If you're a few months behind, now is the time to catch up, not in March when your accountant is asking for it.
2. Reconcile your bank and credit card accounts
Compare your books to your bank and credit card statements, month by month. The numbers should match.
If they don't, something is missing or doubled up. Finding it now is much easier than finding it next spring.
3. Chase your unpaid invoices
Pull up a list of everyone who still owes you money.
Send a friendly reminder before the holidays. People are often in a better mood to pay in December than in January.
If an invoice is truly never getting paid, let your accountant know. It may be written off as a bad debt.
4. Pay or record your own bills
Look at what you owe your suppliers. Make sure those bills are entered in your books, even if you haven't paid them yet.
This gives you a true picture of how the year actually went.
5. Gather your receipts
Find the receipts hiding in your truck, your email and your coat pockets. Snap a photo or upload them to your bookkeeping software.
No receipt can mean no deduction. CRA can ask to see them, so keep them for at least six years.
6. Separate personal and business spending
Did you use the business card for groceries? Or pay a business bill from your personal account?
It happens to everyone. Just make sure each one is flagged and recorded properly so your accountant isn't left guessing.
7. Total up your vehicle use
If you use your vehicle for work, you'll need your business kilometres and total kilometres for the year.
Check your logbook now. If there are gaps, it's easier to fill them in while the year is still fresh.
8. Count your inventory
If you keep materials or products on hand, do a count at year end. Write down what you have and what it cost.
This number affects how much profit you report, so it matters more than most people think.
9. Get ready for payroll slips
If you have employees, T4 slips are due by the end of February. If you paid contractors in construction, you may also need to file T5018 slips.
Make sure names, addresses and SINs are up to date now so you're not scrambling later.
Payroll can feel like a lot to manage on your own. Shingatok Bookkeeping Services is a proud ADP partner, so you know your payroll is handled with care.
10. Check your GST/HST
Make sure your GST/HST collected and paid for the year is recorded and matches what you filed.
Not sure when your next filing is due? Grab our Free GST Calendar and keep every deadline in one place.
11. Talk to your accountant before December 31
Thinking about buying equipment, a new truck or paying yourself a bonus? Ask your accountant first.
Some decisions have to be made before the year ends to make a difference on your taxes. A quick conversation now can save you money.
The bottom line
Year end doesn't have to be stressful. Work through this list one step at a time and you'll start the new year with clean books and fewer surprises.
If your books are behind or you'd rather hand this off, Shingatok Bookkeeping Services can help. We work with small businesses and trades across Canada to get your books caught up and ready for tax time.
Get in touch today and start 2027 with a clean slate.
