Year-End Accounting Checklist for Ontario Businesses
As the year comes to a close, many small and medium-sized businesses in Ontario find themselves scrambling to get their books in order. From finalizing payroll to preparing for corporate tax filing, year-end accounting is more than just paperwork—it’s the foundation for starting the new year on the right foot.
At Mak Tax & Accounting Services, we work with businesses across Scarborough, Toronto, and the GTA to simplify year-end processes. With accurate bookkeeping, organized records, and proactive tax planning, businesses can close their books confidently and prepare for growth in the upcoming year.
This blog provides a comprehensive year-end accounting checklist for Ontario businesses, plus insights on how partnering with Mak Tax can save time, reduce stress, and maximize tax savings.
Why Year-End Accounting Matters
Year-end accounting isn’t just about filing taxes—it’s about reviewing your financial health, ensuring CRA compliance, and preparing strategies for the future. Done right, it helps businesses:
Avoid CRA penalties and late filings.
Maximize deductions and credits.
Improve cash flow management.
Gain clarity for business planning and growth.
Mak Tax Advantage:
With our Bookkeeping, Corporate Tax Filing, Payroll, and Advisory Services, we provide Ontario businesses with everything they need for smooth year-end compliance.
1. Review and Reconcile Your Books
The first step in year-end accounting is making sure your financial records are accurate. That means reconciling bank accounts, credit cards, and loan balances with your bookkeeping records.
Checklist Item:
Match income and expenses to bank statements.
Reconcile outstanding invoices and payments.
Verify loan balances and interest payments.
Mak Tax Service Tie-In:
Our Monthly Bookkeeping Services in Scarborough and Toronto ensure your records are updated throughout the year, so year-end reconciliation is quick and stress-free.
2. Organize Receipts and Expense Records
Missing receipts can mean lost deductions at tax time. Keep everything organized to support your expense claims in case of a CRA review.
Checklist Item:
Collect all receipts, invoices, and bills.
Digitize paper records to avoid loss.
Categorize expenses for tax deductions.
Mak Tax Advantage:
We help businesses digitize receipts and organize expense records, making Corporate Tax Filing easier and more accurate.
3. Verify Accounts Receivable and Payable
Outstanding invoices and unpaid bills affect cash flow and year-end reporting. Review accounts receivable (AR) and accounts payable (AP) to get a clear financial picture.
Checklist Item:
Follow up on overdue client payments.
Pay outstanding vendor invoices.
Write off uncollectible debts if necessary.
Mak Tax Service Tie-In:
Through our Bookkeeping and Cash Flow Management Services, businesses in Toronto and the GTA can track AR and AP effectively.
4. Review Payroll and WSIB Compliance
Payroll mistakes are common but costly. At year-end, review all employee wages, deductions, and WSIB contributions.
Checklist Item:
Ensure CPP, EI, and income tax deductions are accurate.
Verify remittances have been submitted to CRA.
Review WSIB premiums based on payroll amounts.
Mak Tax Advantage:
Our Payroll & WSIB Filing Services ensure deductions are correct and deadlines are met, keeping Ontario businesses compliant.
5. Review HST Filing and Input Tax Credits
If you’re registered for HST, year-end is the time to review filings and ensure all Input Tax Credits (ITCs) were claimed.
Checklist Item:
Confirm all HST collected was remitted.
Check ITCs were claimed for eligible business expenses.
Prepare for the next filing deadline.
Mak Tax Service Tie-In:
We provide HST Filing Services for Scarborough and Toronto businesses, maximizing ITCs and ensuring accurate submissions.
6. Review Asset Purchases and Depreciation
Capital assets like equipment or vehicles are treated differently for tax purposes. Ensure they’re recorded correctly and depreciation is applied.
Checklist Item:
Record all new asset purchases.
Apply depreciation according to CRA guidelines.
Review disposal or sale of old assets.
Mak Tax Advantage:
Our Corporate Tax Filing Services include asset management and depreciation calculations to maximize deductions.
7. Check Owner’s Draws, Dividends, or Shareholder Loans
For incorporated businesses, reviewing shareholder accounts is critical. Improper handling can result in unexpected taxes.
Checklist Item:
Record all dividends or draws taken.
Ensure shareholder loans are tracked correctly.
Plan future distributions with tax efficiency in mind.
Mak Tax Service Tie-In:
With our Advisory Services, we guide Ontario business owners on the most tax-efficient ways to handle dividends and shareholder loans.
8. Conduct a Tax Planning Review
Don’t just prepare taxes—plan them. Year-end is the perfect time to look for strategies to reduce your taxable income legally.
Checklist Item:
Maximize deductions and credits.
Consider RRSP contributions before the deadline.
Explore small business tax planning opportunities.
Mak Tax Advantage:
Our Tax Planning Services help Scarborough and GTA businesses implement strategies that save money before filing deadlines.
9. Prepare for Corporate Tax Filing (T2 Returns)
For incorporated businesses, year-end preparation leads directly into T2 corporate tax filing. Filing late or with errors can trigger CRA penalties.
Checklist Item:
Gather financial statements (income statement, balance sheet, cash flow).
Review deductions and tax credits.
Prepare for timely T2 submission.
Mak Tax Service Tie-In:
Our Corporate Tax Filing Services in Toronto and the GTA ensure accurate, on-time submissions with maximum tax savings.
10. Set Goals for the New Year
Year-end isn’t just about closing the books—it’s about preparing for growth. Reviewing your financials helps set realistic goals for the year ahead.
Checklist Item:
Analyze profitability trends.
Create a budget and cash flow forecast.
Identify areas for cost savings or investment.
Mak Tax Advantage:
Through our Advisory and Planning Services, we help Ontario businesses use year-end results to build strong strategies for the future.
Real-Life Example: Scarborough Business
A Scarborough-based retail business used to treat year-end accounting as a last-minute scramble. Receipts were missing, payroll deductions didn’t match, and HST filings were inconsistent. When CRA audited them, they faced penalties and denied deductions.
After partnering with Mak Tax Accounting Services:
Their books were updated monthly.
Payroll and WSIB filings were accurate and timely.
HST and ITCs were properly recorded.
Year-end tax planning reduced their liability.
Result:
The business avoided penalties and gained clarity for expansion in the GTA market.
How Mak Tax Helps Ontario Businesses
At Mak Tax & Accounting Services, we provide end-to-end support to make year-end accounting stress-free:
Bookkeeping Services – Monthly and quarterly updates.
Payroll & WSIB Filing – Accurate deductions and compliance.
HST Filing Services – Proper remittances and ITC tracking.
Corporate Tax Filing (T2 Returns) – Accurate, timely submissions.
Tax Planning & Advisory Services – Strategies to minimize liabilities.
Audit Support & CRA Representation – Protection in case of reviews.
We serve businesses across Scarborough, Toronto, and the GTA, delivering reliable accounting solutions that save time and money.
Year-end approaching? Don’t let stress take over. Let professionals handle your books, payroll, HST, and tax filing.
Visit us at: 4900 Sheppard Ave East, Unit 1-B, Scarborough, ON M1S 4A7
Call: (647) 435-1087
Mak Tax Accounting Services, we make year-end accounting accurate, affordable, and stress-free. Contact us today to get your year-end checklist completed with confidence.
Final Thoughts
Year-end accounting is more than just a compliance task—it’s an opportunity to strengthen your business. By reconciling records, organizing receipts, filing HST and payroll accurately, and planning taxes strategically, Ontario businesses can save money and prepare for growth.
Mak Tax, we’ve helped countless businesses in Scarborough, Toronto, and the GTA simplify year-end processes with our bookkeeping, payroll, HST filing, corporate tax, and advisory services. With everything under one roof, you’ll have peace of mind knowing your finances are in expert hands.
A well-prepared year-end sets the stage for a profitable and stress-free new year.