So another yearend is around the corner for your business. Do you have everything ready? When is a good time to start organizing and submitting your records?
It is recommended that you advise your accountant when you will be bringing in your yearend records so he/she can plan accordingly. It is always appreciated when you give your accountant an adequate amount of time to do their work. Generally, corporate taxes payable are due 3 months after the respective yearend date while the actual corporate tax return (T2) is due 6 months after the yearend. Therefore, it would be very helpful to forward the accounting records to your accountant a few weeks after the yearend date to allow him/her sufficient time to perform the necessary work. Allowing your accountant adequate times means they can do a more thorough job to ensure nothing gets missed and that you get the best possible tax scenario and financial advice for your business planning for the following year.
So, what records should you prepare for your accountant? The common records your accountant requires are:
1. Accounting ledgers for the fiscal year, such as synoptic journal, Excel spreadsheet, or data files from Sage 50 (formerly Simply Accounting), QuickBooks, AccountEdge (MYOB), etc.;
2. Bank reconciliations and bank statements for the fiscal year;
3. Accounts receivable listing. This is a listing of sales made during the year, but not yet collected as at the yearend date;*
4. Inventory listing. This is a listing of the inventory on hand as at the yearend date by description, cost and quantity; *
5. Any purchases / disposals of property, plant and equipment or capital assets, such as computers, furniture, equipment, etc.; *
6. Accounts payable listing. This is a listing of invoices for products or services received, but not yet paid for as at the yearend date;
7. GST/HST remittance(s) made and returns filed during the fiscal year;
8. Payroll remittance forms filed with Canada Revenue Agency (CRA) during the fiscal year. (PD7A Statement of Account for Current Source Deductions); *
9. Any invoice(s) paid during the fiscal year for legal services; and *
10. Last annual report filed with the federal / provincial government.
* denotes “if applicable”
Additionally, it would help your accountant to provide information on anything significant in nature in the past year. Examples may include and are not limited to:
1. New property purchase;
2. New address;
One last reminder, if you realize you have one more sales or purchase invoice to record after you have sent all your information to your accountant, it is important to also forward that information to him/her so it can be included. Do not record it backdated after the accountant has finished their work.
The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
This post has been prepared for general information purposes. It is not advice. The information presented may not fit your unique situation, please consult one of our trusted business advisors at RHN CPA for further clarification and interpretation of your particular circumstances.