The Canadian tax season is coming up. April 30, 2026 is the deadline for most individuals and solopreneurs to file their returns and pay any balance owing.
Taxes are not my favourite part of running a small business. Even though I work with an accountant, it still feels admin-heavy to pull together everything he needs and to feel confident that I’ve got it right.
For 2026, I want to get ahead of it. Conversations with experts like Suzanne Wood, Fractional CFO and Founder of Beyond the Numbers, have helped me feel more in control of the docs I need, clearer about my numbers, and far less stressed about the process.
Suzanne has guided many businesses through high-growth periods and tougher economic moments. Here are her tips to help you get yourself, and your business, organized ahead of tax season this year. Don’t miss the helpful download link at the bottom!
Tax season doesn’t have to feel stressful or chaotic. When your financial information is organized, it saves time, prevents errors, and reduces back-and-forth with your tax accountant. More importantly, it helps you understand what actually happened in your business this year, so you can plan smarter moving forward.
As a CPA and Financial Strategist, I’ve worked with small business owners for over a decade and have seen the difference between books that are done and books that are truly tax-ready. Here are the key areas I focus on with clients and what you can apply to your own year-end process.
What to Organize
- Bank and Credit Card Accounts
Before you send anything to your accountant, make sure your bank and credit card accounts are fully reconciled, which means your statement ending balance matches what’s in your accounting software.
If it doesn’t match, there’s usually a hidden issue, such as missing transactions, duplicates, or incorrectly recorded payments. This is one of the biggest reasons tax prep gets delayed, or accountants come back with questions.
- Your Financial Reports
Your accountant will use your reports as the starting point for calculating taxable income, and they should be reviewed before they are sent.
- Profit & Loss (P&L): Check for uncategorized expenses or account totals that seem incorrect. Often, this reveals duplicates, personal expenses, or misclassified items mixed in with your business transactions.
- Aged Accounts Receivable (AR): Shows who still owes you money. Confirm these totals are accurate and payments were applied correctly.
- Aged Accounts Payable (AP): Shows what you still owe. This should reflect expenses incurred in that tax year, even if they were paid shortly after year-end.
- Receipts for Unusual Transactions
Each year, most businesses have a handful of transactions that need extra documentation: for example, any assets purchased, donations made, or tax slips received.
Gather these receipts in a separate folder and flag them with your year-end paperwork.
What to Track
- Mileage
Business travel can be claimed, but it needs proper tracking. If you don’t have a mileage log, start one now.
If you didn’t track mileage during the year, you may be able to rebuild some of it using your calendar as a reference for business meetings and events.
- Business Expenses Paid Personally
Even with separate accounts, business expenses like that Amazon order or trip to the store can land on a personal card by mistake.
Take a few minutes to scan your personal statements and catch anything that should be included in the business, as these expenses can add up. If you find any, compile them and flag them for your tax accountant.
- Personal Draws
If you operate through a corporation, your shareholder loan account tracks what you’ve taken out of the business versus what you’ve contributed. If the balance is negative, there may be personal tax implications, and your accountant will need to issue a tax slip before the end of February.
As a sole proprietor, your profit isn’t separate from your taxable income; however, tracking what you actually spend on a personal level versus your actual profit will help you understand your required earnings.
Knowing either your total draws or your actual spending will help you adjust your future earnings goals and support future tax planning.
What to Stop Ignoring
- The Balance Sheet
Most owners focus on revenue and expenses, but the Balance Sheet is often where problems appear. This report shows you what you own (assets) and what you owe (liabilities).
Review your loans, CRA balances, prepayments, and inventory accounts to ensure they are accurate, and pull any documents related to these accounts.
- Waiting Until the Last Minute
Tax season can go sideways when it becomes a last-minute thought.
Starting early gives you time to fix issues, find missing documents, and respond to questions calmly. Waiting until deadlines are close creates stress, rushed decisions, and mistakes that could have been avoided.
- Ignoring What Your Numbers Are Telling You
Year-end tax prep isn’t just about handing numbers over to your tax accountant; it’s a chance to look back and learn from what the numbers are telling you. Once the year-end is complete, these are a few of the questions I review with my clients:
- Did revenue and expenses align with your goals for this year?
- Were there any surprises that need further attention?
- What does your 2025 performance mean for your 2026 plan?
- What changes are needed to better support you in 2026?
If you’ve been avoiding your numbers, you’re not alone. This step can feel uncomfortable at first, but ignoring the numbers doesn’t make them go away… it only delays clarity. The more consistently you review them, the more confident you’ll feel making decisions in 2026.
Tax season is more than paperwork. It’s a chance to confirm that your financial processes work, your reports are reliable, and your numbers reflect the truth of your business. When you understand what’s driving your results, you gain the confidence to make informed decisions and plan ahead with intention.
For more information on taxes and strategic financial guidance, connect with Suzanne on Linkedin or visit her website behindthenumberssolutions.ca.
Get yourself organised. Download Suzanne’s YEAR-END Financial Checklist for Small Businesses.
