Year-end books and tax returns for BC small businesses
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The return comes from the books, so the year end is only as good as the twelve months before it. We do both halves, and they agree.
Short answer: we close the year’s books and prepare the return from them: a T2 with its schedules for a Canadian-controlled private corporation, or a T1 with the statement of business activities for a sole proprietor. Because we closed each month as the year went, the year end is adjustments rather than reconstruction, and salary, dividends and the shareholder account line up across the corporate and personal returns. If your accountant already files your return, we hand over closed books and the reconciliations they will ask for.
What the year-end service covers
The dates that matter
A corporation files its T2 within six months of its year end, and the balance of tax is generally due two or three months after it, which is earlier than people expect. A sole proprietor with a 31 December year end files the T1 by 15 June, but any tax owing is due on 30 April. Missing the payment date costs interest even when the return itself is on time.
Unfiled years
If returns are behind, we bring the books up to date and file the missing years oldest first. A demand to file from the CRA changes the position, and so does the Voluntary Disclosures Program, which can reduce penalties if you apply before the CRA contacts you.
Questions about year end and tax returns
Do you prepare corporate tax returns?
Yes. We prepare and file T2 returns and their schedules for Canadian-controlled private corporations, from books we closed month by month.
Do you do personal tax returns for the self-employed?
Yes, T1 returns for sole proprietors and the self-employed, with the statement of business activities prepared from the books.
My accountant does my year end. Can you just do the monthly books?
Yes. We close the books each month and hand your accountant closed books and the reconciliations they need at year end.
When is my corporate tax due?
The T2 is due six months after the year end, but the balance of tax is generally due two months after it, or three for a small CCPC that qualifies. The T2 guide sets out both.
The corporate year-end checklist →
The sole proprietor year-end checklist →
T2 deadlines and late penalties →
Get a written quote
Tell us where you are, roughly how many transactions a month and what you need filed. A written scope and a fixed monthly price follow within one business day.
info@orbisaccounting.ca