Tax season can be a daunting time for small business owners in Canada, especially when there are complex tax laws and obligations to the Canada Revenue Agency (CRA) to navigate. Whether you are a sole proprietor, partnership, or corporation, it is crucial to be well-prepared for tax time and to take advantage of all the available tax write-offs and credits to minimize your tax liability.

As a professional and experienced bookkeeper in Kitchener, Ontario, I understand the importance of staying up-to-date, and I'm here to help you make sense of it all. In this blog, I will provide you with a comprehensive guide to small business tax services, including a printable checklist of all the necessary documents you need to file your return, tax write-offs and deductions, tax obligations, and more.


Step 1: Gather Your Documents

Before you begin the tax preparation process, it is essential to gather all the necessary documents. These may include financial records, invoices, receipts, bank statements, and any other relevant paperwork. By having everything in one place, you will save time and ensure accuracy when filing your taxes.

The following is a list of documents you may need to gather:

- Business Records: Deposit slips, bank statements, business credit card statements, business income records, sales invoices, receipts, bank deposit slips, fee statements, contracts, loan agreements and year-end balance statements, detailed year-end inventory listing, and receipts on capital purchases or sales in 2022.
- Documents for employees and/or subcontractors: Summary of Remuneration Paid, worker's compensation payments or benefits, payroll, source deductions and taxable benefits for employees, Statement of Contract Payments (construction only), tax slips, correspondence, and receipts.
- 2022 Tax Returns: T1, Notice of Assessment, CRA correspondence received throughout the year, instalment payments made for income tax, GST/HST/PST, and payroll.
- Partnership Information Return: If you're in a partnership.
- T2 Income Tax Return: If you have an incorporated business, shareholder transactions and dividends, T2 financial statements, Return of Investment Income, Articles of Incorporation, and Annual Registry Return.

In addition to the above documents, you may also need to gather investment information, personal receipts for eligible medical expenses, charitable donations, tuition or educational expenses, interest paid on student loans, childcare expenses, moving expenses, and more.

Step 2: Understand Your Tax Obligations

As a small business owner, it is crucial to understand your tax obligations. Learn about the various tax forms you must fill out, such as T1 for sole proprietors and T2 with schedules for corporations. Additionally, be aware of important and specific requirements for your industry.

The tax filing deadline for the 2023 tax year for self-employed individuals and their spouses or common-law partners is June 15, 2024. If you owe taxes, you must pay by April 30, 2024. To ensure you’re compliant, we always recommend filing and paying by April 30, 2024.

If your business is incorporated, your filing deadline is six months following your fiscal year-end. For example, if your year-end is December 31, 2023, you must file your T2 Return by June 30, 2024.

Step 3: Identify Small Business Tax Write-Offs

One of the key benefits of tax preparation is maximizing your deductions. Take the time to identify potential tax write-offs that apply to your business. These may include expenses related to home office space, equipment, vehicle usage, professional services, and more. Keeping detailed records throughout the year will help you identify these deductions accurately.

Step 4: Leverage Tax Credits

In addition to write-offs, small businesses can leverage various tax credits to reduce their tax liability. Familiarize yourself with the credits specific to your industry, such as research and development credits or job creation tax credits. Consult with a tax specialist if needed to ensure you’re taking full advantage of available tax credits.

Step 5: Seek Assistance from a Small Business Tax Specialist

While it is possible to do your small business taxes alone or with the help of online software, the right tax specialist can do more than prepare and file your taxes. As a professional and experienced bookkeeper, I recommend seeking a long-term partner in business who can offer a variety of services, provide accurate tax advice, and help you make informed financial decisions.


Being prepared, staying informed, and seeking assistance when needed will help you through a smoother and less stressful tax season. Trust JD Bookkeeping for all your small business tax services needs, and let's work together to achieve your financial goals. To contact us, please click here or call us at (519) 949-2918.