The end of the year does not have to bring woes to your business, in fact, it should represent a time to reflect on the successes (and failures) of the previous year and a time to look forward to the upcoming year, your business plans and goals.
When thinking about year-end, the obvious comes to mind; T4’s, taxes , reconciliation’s and financial statements.
You should however consider the less obvious; that is, your business plan.
When looking at your business plan, ask yourself a couple of very specific questions:
- Did we reach our goals for the current year?
- Why or Why Not?
- What are our goals for the coming year?
- How will we achieve these goals?
These are very basic questions, but asking them of yourself and your staff can provide insight and build a team atmosphere around your business objectives.
Involving staff, partners and alliance partners in your planning process may provide you with insight into areas you cannot readily see.
If you operate a family business, involve your family, including children in the planning process. Children sometimes have uncanny insight into things ‘adults’ cannot recognize. If you plan to someday turnover your business to your children, involving them at a young age will also help guide the future of your business.
Business plans aside, what else should you consider at year-end?
Payroll: All employees that have had cumulative earnings in excess of $500 in the calendar year MUST receive a T4; on or before February 28th. There is no such thing as ‘Casual Labour’!
All persons receiving commission, bonuses, retiring allowances and other types of special payments must receive a T4A.
You will likely need to file a Workers Compensation Reconciliation report with your Provincial Government.
You may need to file a Health tax reconciliation with the Provincial Government.
You will need to ensure you have accurate, up to date TD1 forms for ALL employees (the fine is $25 per day per employee for missing forms).
Corporate Tax: You will need to complete your financial statements, Accounts Receivable & Accounts Payable reconciliation’s. You will need to file a Corporate tax return (if applicable) with the Federal Government (and some Provinces).
The most important thing to do at year-end is to ensure you have accurate, complete financial information.
If you are ever subject to Audit or Review by CRA or one of the Sales Tax agencies, the display of complete and accurate information goes a long way to reducing the audit time, and likely penalties.
When considering who to assist you with year-end duties, remember it is a very common misnomer that a ‘firm’ needs to file your returns.
You can generally save hundreds, if not thousands of dollars by having a competent professional deal with your filing requirements vs. the fees seen at the larger firms.
Ask us how much to prepare your Financial Statements and Corporate Tax Returns – you’ll be surprised! – We believe in AFFORDABLE ACCOUNTING!
If you have questions or concerns about your year-end filing requirements, contact your local Ledgers Professional or email email@example.com
Is your Corporate Minute Book up to date? Ask us for assistance!