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Documents Your Accountant Needs to File Your Taxes as a Sole Proprietor in Canada
Wondering what you need to provide your accountant to file your taxes?
Disclaimer – This is NOT a complete list, it will depend on the specifics of your business. This is just a list of the common things that my niche of clients often need to provide their accountants.
This is for Canadian service-based entrepreneurs.
This might also be a lot more than you need to provide them, especially depending on the size of your business, business entity & what you’re using for bookkeeping software, so make sure to ask them.
Keep in mind, if your bookkeeping system is a spreadsheet, quite a bit of this won’t be available and you will provide them with the pieces you do use in your business.
Potential Documents to Give Your Accountant:
- Balance Sheet (compare to the previous year if you can)
- Profit & Loss (P&L) for the year (compare to previous year if you can)
- P&L by month
- If you have outstanding AR (accounts receivables) or AP (accounts payables),
- General Ledger
- Trial Balance for the year
- Cash Flow Statement
- Organized info to claim: home office expenses, business use of vehicle (mileage), and personal health expenses
Here is a visual of what we send to our bookkeeping clients’ accountants on their behalf at year-end. We call this their “Year End Bookkeeping Package.”
- Folder with all statements for bank & credit card accounts for the last month of the fiscal year (sole props this will be December, if you’re incorporated this will be the last month of your fiscal year for the corporation, which might not be Dec 31st)
- Notes for accountant – anything specific the accountant should know, notes about anything that happened this year or specific purchases, etc
- Any receipts that are of assets (ex: computer equipment or office equipment or furniture that was over $500, any assets the business purchased, etc)
If this seems like a lot, take a breath!
This is why it’s so valuable to hire a quality bookkeeper to take care of your bookkeeping for you. These are the types of things that I provide for my Done for You Bookkeeping clients in my Financial Year End Bookkeeping Package (that I then send off to your accountant on your behalf!).
Click here to read more about our bookkeeping services and here to book in for a free discovery call to talk about outsourcing your bookkeeping.
Wanting help with managing your cash flow as an entrepreneur? You can read more here about how I help my financial coaching clients with this.
Want more helpful tips for running the behind-the-scenes and financial side of your business? Join me on Instagram @intentionallywealthyco!
Other Great Blogs You May Like:
- Questions to Ask When Hiring a Bookkeeper
- The Process of Working with a Bookkeeper
- Questions to Ask When Hiring an Accountant
- Bookkeeping Responsibilities for Canadian Entrepreneurs
- 5 Steps to Create a Solid Financial Structure for Your Business
