Start with the right year-end date
Confirm your corporation’s fiscal year-end rather than assuming December 31. Personal tax years generally end December 31, but corporations can have different fiscal year-ends. Your planning timeline should follow the relevant taxpayer and reporting period.
Reconcile before you plan
Bring bank and credit-card reconciliations up to date. Review receivables, payables, shareholder balances and loan accounts. Reliable financial statements help identify errors before returns are prepared.
Review business expenses and documentation
Check that business expenses are properly classified and supported by invoices or receipts. Not every purchase is immediately deductible: capital assets, mixed personal-business use and prepaid amounts may require different treatment.
Examine payroll and owner compensation
Review source deductions, taxable benefits, payroll remittances and compensation paid to owners. Salary and dividends can have different tax and contribution consequences. Decisions should be evaluated against the owner’s personal circumstances.
Reconcile GST/HST separately
Compare GST/HST collected, input tax credits and filed returns with your general ledger. Keep supporting documents and investigate differences before the next filing.
Plan cash flow, not just taxes
Estimate upcoming tax instalments, payroll remittances and supplier payments. A decision that reduces taxable income may still weaken cash flow if it requires an unnecessary purchase.
Official CRA resource: Canada Revenue Agency. General information; rules and eligibility depend on the facts.