How to Prepare for Tax Season (Without the Panic)

Tax season doesn’t have to be stressful. With the right prep and systems in place, you can avoid last-minute scrambling—and maybe even save money.

Here’s how Canadian entrepreneurs, Indigenous councils, and small businesses can get tax-ready before the deadline rush.

Start Early (Even If It's Just a Little)

The earlier you begin organizing, the smoother tax filing will be. Start by:

• Collecting income records and invoices

• Making sure all bank accounts are reconciled

• Confirming all expenses are categorized properly

• Reviewing payroll slips, T4s, and subcontractor info

Even 30 minutes a week in January or February can save you hours in April.

Know What Your Accountant Needs

Make a checklist of key tax documents, including:

• Profit & Loss statement

• Balance Sheet

• Trial Balance

• Copies of GST/HST returns

• All year-end payroll forms (T4s, ROEs)

• Details of asset purchases or write-offs

Your bookkeeper can help generate these reports directly from QuickBooks Online or Xero.

Clean Up Your Books

Now’s the time to fix:

• Duplicates or uncategorized transactions

• Old receivables or credits that need writing off

• Accounts that don’t match your bank statements

• Personal expenses mistakenly recorded as business ones

A bookkeeping cleanup service or paid diagnostic review helps catch these issues before they hit your tax return.

Indigenous Business Tip

For Indigenous councils or grant-funded ventures, clean books at year-end also support program renewal, audit prep, and compliance with frameworks like the TH Financial Administration Act.

Your tax prep doubles as funding prep—so accuracy matters.

Use Tools to Save Time

Modern cloud tools simplify tax season:

• Hubdoc, Dext, or AutoEntry for receipt capture

• Xenett for cleanup reviews

• QuickBooks Online for real-time reporting

• Secure document portals for easy file sharing

Your virtual bookkeeping team should already be using most of these behind the scenes.