What should Ontario small business owners do at the end of the year?

At year-end, review financial statements, reconcile accounts, prepare tax documents, update records, plan budgets for the new year, and ensure compliance with government regulations.

How do I prepare my small business for year-end taxes in Ontario?

Gather all income and expense records, review deductions, reconcile accounts, and consult an accountant to ensure accurate reporting for federal and provincial taxes.

What financial reports should I review at year-end?

Review balance sheets, income statements, cash flow statements, accounts receivable and payable reports, and any outstanding invoices to get a clear financial picture.

How can I organize receipts and invoices for year-end in Ontario?

Sort receipts and invoices by category and date, digitize paper records, and maintain an organized system to simplify tax filing and auditing.

Do I need to file annual returns for my Ontario small business?

Yes. Corporations and certain registered businesses must file annual returns with the Ontario Business Registry to remain in good standing.

What payroll and employee tasks should be completed before year-end?

Ensure employee records are updated, reconcile payroll, issue T4 slips for employees, and remit any outstanding source deductions to the CRA.

How do I review my business budget and plan for the new year?

Compare actual expenses and revenue to your budget, identify areas to optimize, and allocate funds strategically for growth and operational needs in the coming year.

Should I review contracts and agreements at year-end?

Yes. Review client contracts, supplier agreements, and leases to ensure terms are up-to-date and to identify opportunities for renegotiation or renewal.

How can small business owners prepare for taxes and deductions in Ontario?

Keep detailed records, categorize expenses properly, consult with an accountant, and take advantage of all eligible tax deductions and credits.

Do I need to update business licenses and permits at year-end?

Yes. Check expiration dates, renew licenses and permits, and ensure your business remains compliant with municipal, provincial, and federal requirements.

How do I handle inventory and assets at the end of the year?

Perform a physical inventory count, update asset records, account for depreciation, and adjust your financial statements accordingly.

Can I use year-end review to improve business operations?

Yes. Analyze performance metrics, customer feedback, and operational processes to identify inefficiencies and plan improvements for the upcoming year.

What is the easiest way for Ontario business owners to complete their year-end checklist?

Use a structured checklist like the one provided by Launch a Business, track each task, and consider professional help for accounting, payroll, and compliance to ensure everything is completed accurately.

How can year-end planning help with financial goals for the next year?

By reviewing past performance, setting budgets, and identifying growth opportunities, year-end planning helps align your financial strategy with your business goals for the upcoming year.

End-Of-Year Checklist For Small Business Owners (Canada Edition)

Natalie Paquette
5d
3 min read

The end of the year always sneaks up fast — especially when you’re running a business. Between juggling sales, clients, and daily operations, it’s easy to forget those little year-end details that set you up for success in the new year.

Whether you’ve just launched your business or you’re a few years in, this end-of-year checklist will help you wrap things up neatly and start fresh in January without the chaos.

1. Review Your Financials

This is the big one. Take time to look over your income statement, balance sheet, and cash flow report. Make sure everything matches your bank records, invoices, and receipts.

A few things to double-check:

Outstanding invoices or bills that need payment
Any expenses you haven’t yet logged
Account balances that don’t line up
Prepaid expenses or deposits for the next year

If you use accounting software like QuickBooks or Wave, this step is much easier — but if not, consider setting that up before the new year begins.

2. Organize Your Receipts and Documents

Receipts are easy to lose track of throughout the year, but they’re critical come tax time. Go through your folders (physical and digital) and make sure everything is sorted, labelled, and easy to find.

Pro tip: use a digital scanner or app to save electronic copies. The CRA accepts digital records, so you don’t need to keep every paper copy forever.

3. Reconcile Payroll and Contractor Payments

If you’ve hired employees or contractors, make sure all payments and deductions are accurate before year-end. Review your payroll summaries, ensure T4s and T4As will be ready, and check that all remittances to the CRA are up to date.

Don’t forget:

CPP and EI contributions
Income tax withholdings
Year-end bonuses or commissions

If you use contractors, make sure you have their updated contact info for issuing T4As or records of payment.

4. Review Your Taxes

Even if you’re not filing until spring, now’s the time to plan ahead. Look at your profit and see if there are any deductions or purchases you can make before year-end to reduce taxable income.

Common examples include:

Buying equipment or software you’ll need next year
Contributing to an RRSP
Paying for professional memberships or subscriptions early

If you’re incorporated, talk to your accountant about any dividends, director fees, or deferrals to consider before December 31st.

5. Check Your Business Registrations and Renewals

If you registered your business name or incorporated, double-check your registration’s expiry date. Sole proprietorships and partnerships in Ontario need to renew every 5 years, while corporations must file annual returns each year.

It’s also a good time to confirm your business address, directors, and contact info are current with the appropriate registry. If you aren’t sure what’s currently listed in the registry, you can always obtain a profile report to double check.

6. Update Your Business Plan and Goals

Take a look back at your year. What went well? What could’ve gone smoother?Use that info to update your business plan or set new goals for next year.

Try reflecting on:

Your most profitable products or services
Customer feedback or trends
Operational bottlenecks or challenges

It doesn’t have to be a big, formal process — even a few pages of honest reflection and direction can go a long way.

7. Back Up Your Data

This one’s easy to skip until something goes wrong. Back up all your business files, accounting records, client info, and documents before the year ends. Store a copy securely in the cloud or on an external hard drive.

8. Celebrate Your Wins

Running a business is no small feat. Before jumping into another busy year, take a moment to celebrate how far you’ve come.Whether it’s your first customer, your first profit, or simply surviving another year in business — it’s worth acknowledging.

9. Plan Ahead for the New Year

Once your books are balanced and your goals are set, look ahead.

Plan your marketing calendar, product launches, or new service offerings early so you can hit the ground running in January.

And if one of your goals is to register or incorporate a new business, we’re here to help. Launch a Business makes it simple to get started online — whether it’s a new sole proprietorship, partnership, or corporation.

What's ahead for you in the new year? Do you want to start a new small business or corporation? Maybe you already have a small business and now you're ready to incorporate? Not sure what the difference between each of these is? We're here to help!

Book a quick 15 minute call with us - we're here to help answer your questions, so you can focus on doing what you do best.

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