Bookkeeping

Year-End Bookkeeping Checklist for Canadian Businesses (2026)

By Accountium Team  ·  Updated May 2026  ·  ⏱ 12 min read

Year-end is one of the most stressful times in any business owner's calendar — and for good reason. Closing your books properly is the foundation for accurate tax filing, clean financial reporting, and a smooth start to the new fiscal year.

This checklist walks Canadian business owners and bookkeepers through every step of the year-end close: reconciling accounts, reviewing payroll, meeting CRA deadlines, and getting your books ready for your accountant. Bookmark it and run through it every year before you close the books.

Pro Tip Whether your fiscal year ends December 31 or on a different date, this checklist applies. Adjust the deadline references to match your year-end date accordingly.
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1. Reconcile All Accounts

Reconciliation is the backbone of accurate bookkeeping. Before you close your books, every account must match its corresponding external statement or source document.

Bank & Credit Card Reconciliation

  • Reconcile all business bank accounts to your year-end bank statements
  • Reconcile all business credit card accounts to their statements
  • Investigate and resolve any outstanding transactions older than 30 days
  • Record any bank fees, interest earned, or service charges not yet entered
  • Confirm the closing balance in your accounting software matches your bank statement exactly

Accounts Receivable (AR)

  • Run an aged AR report and review all outstanding invoices
  • Follow up on invoices overdue by 30, 60, and 90+ days
  • Write off any invoices that are genuinely uncollectible as bad debt
  • Ensure all customer payments received by year-end are applied to the correct invoices
  • Confirm AR balance matches the total of all open invoices

Accounts Payable (AP)

  • Run an aged AP report and review all outstanding vendor bills
  • Enter any bills received but not yet recorded in your system
  • Record accrued expenses for services received but not yet invoiced (e.g. December rent, utilities)
  • Confirm AP balance matches total of all unpaid vendor bills
Accountium Tip Accountium's bank feed and auto-reconciliation tools pull transactions directly from your accounts, so your books stay current year-round — not just at year-end. See how it works →

2. Review Income & Expenses

Once accounts are reconciled, review your income and expense categories to make sure everything is coded correctly and nothing has been missed.

Income Review

  • Confirm all invoices issued during the fiscal year are recorded — even if payment hasn't been received
  • Record any cash or non-invoiced sales that occurred during the year
  • Review deferred or prepaid revenue — ensure income is recognized in the correct period
  • Check for any income misclassified as an expense (or vice versa)

Expense Review

  • Review all expense categories and correct any miscoded transactions
  • Ensure all receipts and supporting documents are attached to their transactions
  • Remove any personal expenses that don't belong in the business books
  • Record any prepaid expenses and amortize them over the correct period
  • Verify that capital purchases (equipment, vehicles) are capitalized, not expensed
  • Review home office, vehicle, and meal expense claims to confirm CRA eligibility
CRA Note Business meals and entertainment are only 50% deductible under the Income Tax Act. Track these in a separate expense category — do not lump them in with general operating expenses.

3. Complete Your Payroll Year-End

Payroll is one of the most compliance-sensitive areas at year-end. Missing CRA deadlines or filing incorrect T4s can result in penalties and interest charges.

Payroll Reconciliation & T4 Preparation

  • Reconcile total payroll remittances made to CRA against your payroll records
  • Verify CPP, EI, and income tax deductions are correct for every employee
  • Account for any taxable benefits (e.g. employer-provided vehicles, group life insurance)
  • Prepare T4 slips for all employees who received employment income during the year
  • Prepare T4A slips for contractors or self-employed individuals paid $500 or more
  • File T4 and T4A slips with CRA and distribute to employees/contractors by the last day of February
  • Make any final payroll remittances outstanding for the year
Related Guide For a full breakdown of payroll obligations, read: Payroll Compliance in Canada: A 2026 Guide →

4. GST/HST Reconciliation

If your business is registered for GST/HST, year-end is the time to ensure your tax collected and input tax credits (ITCs) are accurately recorded before your next filing period.

GST/HST Checklist

  • Reconcile GST/HST collected on sales to your GST/HST payable account
  • Reconcile input tax credits (ITCs) claimed on eligible business purchases
  • Confirm your GST/HST remittances to CRA match the amounts in your books
  • Review any outstanding GST/HST returns not yet filed
  • Confirm your filing frequency (monthly, quarterly, or annually) and upcoming due dates
  • If registered for the Quick Method, verify you applied the correct remittance rate

5. Fixed Assets & Depreciation

Your fixed asset register needs to be current before your accountant can calculate Capital Cost Allowance (CCA) for your corporate tax return.

Fixed Assets Checklist

  • List all capital assets purchased or disposed of during the fiscal year
  • Record the cost, purchase date, and CCA class for each new asset
  • Record proceeds from any asset sales or disposals
  • Run depreciation (amortization) entries through year-end for all applicable assets
  • Confirm the net book value of assets in your books matches your fixed asset schedule
  • Provide your accountant with the updated fixed asset schedule for CCA calculations
CCA vs. Book Depreciation The depreciation recorded in your books (for financial reporting) is separate from CCA claimed on your tax return. Your accountant calculates CCA — your job is to ensure all asset additions and disposals are properly recorded.

6. Inventory Count If Applicable

If your business carries physical inventory, an accurate year-end count is essential for calculating cost of goods sold (COGS) and true net income.

Inventory Checklist

  • Conduct a physical inventory count at or near fiscal year-end
  • Compare the physical count to your inventory records and investigate discrepancies
  • Write off any obsolete, damaged, or unsellable inventory
  • Adjust your inventory balance in your accounting system to match the physical count
  • Confirm your costing method (FIFO, average cost, etc.) is applied consistently

7. Loans & Liabilities

Confirm every liability on your balance sheet is accurate and properly classified before handing off to your accountant.

Loans & Liabilities Checklist

  • Reconcile all business loans and lines of credit to lender statements
  • Record any accrued interest owing but not yet paid at year-end
  • Separate the current portion of long-term debt from the long-term portion on your balance sheet
  • Reconcile director or shareholder loan accounts — ensure draws are properly classified
  • Review any lease obligations and record right-of-use assets if applicable
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8. Key CRA Deadlines

Missing CRA deadlines results in penalties and interest. Keep these dates on your calendar.

Deadline Reference Table

Deadline What's Due Who It Applies To
Last day of February T4 / T4A slips filed with CRA and distributed to recipients All employers
March 31 T3 trust returns (if applicable) Trusts & estates
April 30 Personal tax return and balance owing Individuals
June 15 Personal return deadline (self-employed individuals and spouses) Self-employed
2 months after year-end Corporate tax balance owing (CCPCs may qualify for 3 months) Corporations
6 months after year-end Corporate T2 return filing Corporations
Varies by period GST/HST return and remittance GST/HST registrants
Important Tax balances owing must be paid by the deadline even if your return isn't filed yet — otherwise interest accrues from the due date. Filing late when you owe tax also triggers a late-filing penalty on top of interest.

9. Prepare Financial Statements

With all accounts reconciled, generate your year-end financial statements. These are the documents your accountant, lenders, and investors will rely on.

Financial Statements Checklist

  • Generate a year-end Profit & Loss (Income) Statement and review for anomalies
  • Generate a year-end Balance Sheet and confirm it balances (Assets = Liabilities + Equity)
  • Generate a Cash Flow Statement
  • Compare current year financials to prior year — investigate significant variances
  • Review gross margin and net profit margin against your targets
  • Save and back up final financial statements in a secure location

10. Hand Off to Your Accountant

A well-prepared file makes your accountant's job easier — and keeps your bill lower. Gather these items before the handoff.

Accountant Package Checklist

  • Year-end financial statements (P&L, Balance Sheet, Cash Flow)
  • Bank and credit card reconciliation reports
  • Aged AR and AP reports
  • Fixed asset schedule with all additions and disposals
  • Payroll summary reports and T4 filing confirmation
  • GST/HST reconciliation and filing history
  • Copies of all loan statements and year-end balances
  • Shareholder or director loan account details
  • Prior year's tax return (for reference)
  • Any legal documents from the year (new leases, shareholder agreements, etc.)
Save Time & Money Clean books handed off in Accountium can be shared directly with your accountant via an invite — no exports, no spreadsheets, no back-and-forth.

11. Set Up for a Strong New Year

Once the books are closed, take 30 minutes to set your business up for a cleaner year ahead.

New Year Setup Checklist

  • Open the new fiscal year in your accounting software
  • Update payroll for new CPP and EI rates effective January 1
  • Review and update your chart of accounts if needed
  • Set revenue and expense budgets for the new year
  • Schedule recurring monthly reconciliation reminders
  • Review your GST/HST filing frequency — it may change as your revenue grows or shrinks
  • Back up all prior year financial data (CRA requires records to be kept for 6 years)

Close Your Books With Confidence

Year-end bookkeeping doesn't have to be a mad scramble. When you reconcile accounts monthly, keep receipts organized, and stay on top of payroll and GST/HST throughout the year, the year-end close becomes a straightforward review — not a stressful rescue operation.

Businesses that close their books cleanly and on time are best positioned to make smart decisions, access financing, and grow confidently into the new year.

Accountium keeps your books reconciled year-round — so year-end is a review, not a rescue mission.

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