Small Business Tax Preparation [Free Checklists]

Last updated: Feb. 14, 2023 

Preparing your own taxes if you’re a small business owner or self-employed can be time-consuming, difficult and let’s be honest – boring. Especially if paperwork isn’t really your thing. You want to get back to the good stuff – running your business.

If the filing deadline is looming over your head, and you find yourself unprepared, our advice is to take on one thing at a time. Best way to start? Organize all your paperwork first.

To help you, we’ve created a printable checklist that lists all the documents you need to file your return, and tax write-offs you shouldn’t miss out on.

Download a printable checklist for your 2022 tax return here: 

Tax preparation documents for business owners

Here are the documents you’ll need to file your tax return if you’re self-employed or a small business owner, along with a list of business deductions you can use to lower your tax bill.

BUSINESS RECORDS

• Deposit slips
• Bank statements
• Business credit card statements
• Income records
  • Sales invoices
  • Receipts
  • Bank deposit slips
  • Fee statements
  • Contracts
• Loan Agreements and year-end balances statements
• Detailed year-end inventory listing
• Receipts on capital purchases or sales in 2022

IF YOU HAVE EMPLOYEES AND/OR SUBCONTRACTORS

• T4SUM: Summary of Remuneration Paid
• Worker’s compensation payments or benefits
• Payroll, source deductions and taxable benefits for employees
  If you make payments to subcontractors (construction only)
• T5018: Statement of Contract Payments

TAX SLIPS, CORRESPONDENCE AND RECEIPTS

• 2021 Tax Return(s)
  • T1. T2125
• 2021 Notice(s) of Assessment
• CRA correspondence received throughout the year
• Instalment payments made for income tax, GST/HST/PST and payroll
• T4: Statement of remuneration paid
• T4A: Pension, retirement, annuity, and other income (including COVID individual support benefits)
• If you’re in a partnership, also include:
  • T5013: Partnership information return

IF YOU’RE INCORPORATED, ALSO INCLUDE:

• T2: Incorporation income tax return for 2021
• Shareholder transactions and dividends
• T2 Financial Statements
• T5SUM: Return of Investment Income
• Articles of Incorporation
• Annual Registry Return

INVESTMENT INFORMATION:

• RRSP contribution slips
• T3 slips
• T5 slips
• TFSA Transactions
• T5008 Statement of Security Transactions
• Stock purchases and sales invoices

PERSONAL RECEIPTS (T1 ONLY)

• Receipts for eligible medical expenses
• Receipts for charitable donations
• Tuition or educational expenses
• Interest paid on student loans
• Childcare expenses
• Moving expenses

BUSINESS DEDUCTIONS

• Advertising
• Bad debts
• Business taxes, licenses, and memberships
• Business insurance premiums
• Charitable donations
• Delivery, freight and express costs
• Depreciation expenses (Capital Cost Allowance)
• Interest and bank charges
• Legal and accounting fees
• Meals and entertainment
• Motor vehicle expenses
  • License and registration fees
  • Fuel and oil costs
  • Insurance
  • Interest on money borrowed to buy your vehicle
  • Maintenance and repairs
  • Leasing costs
  • Parking fees (business only)
• Office expenses, stationery, and supplies
• Payment Processing Fees
• Property leasing costs and taxes
• Repairs and maintenance
• Salaries, wages, and benefits incurred by you as an employer
  • Gross salary amount paid to employees
  • Employer paid CPP and EI contributions
  • Employer paid premiums for sickness or disability insurance
• Telephone and utilities
• Travel expenses
• Utilities

DO YOU WORK FROM HOME?

• Business use of home expenses
  • Cleaning materials
  • Electricity
  • Heating
  • Home insurance
  • Mortgage interest
  • Property taxes
  • Portion of rent paid

Free Guide: Tax Preparation Toolkit for Small Business Owners

We know you’re dreading it, but it’s got to be done – and with a little preparation, you can fulfill your tax obligations without any stress. Our comprehensive tax preparation toolkit will help you get organized for tax time.

Learn what information and key documents you need to prepare so you’re ready for the tax filing deadline. There’s even a printable checklist that lists all the documents you’ll need as a business owner, and tax write offs you shouldn’t miss out on. Get the prep out of the way so you can get back to running your business.

 

About FBC

With more than 70 years of Canadian tax experience, we offer unlimited corporate tax preparation help, support and tax advice for one flat fee. Our tax experts will run the numbers to create a custom T2 corporate tax return that helps minimize headaches and maximize your tax savings.

Leave your unique tax situation to us. We’ll get you every dollar you deserve. Book online or call us at 1-800-265-1002.