Year-End Accounting Checklist — What Canadian Businesses Should Review in November

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November signals the start of the final sprint toward year-end accounting in Canada. Whether you’re operating a corporation, freelancing, or working as a professional, this month is crucial for reviewing your financials, optimizing deductions, and avoiding unwanted surprises when tax season arrives. At RGB Accounting, we’re here to help you get ahead with a timely checklist you can act on right now.

1. Review Accrued Income and Expenses

Under Canada’s tax rules, many businesses must use the accrual method of accounting. That means income is reported in the fiscal period when it is earned, not just when it’s received — and expenses must be deducted in the period they are incurred, whether or not they’ve been paid. What this means:

Ensure that any services you delivered or products you supplied by November 30 (or your year-end date) are recorded as income, even if payment is still outstanding.

Likewise, document expenses you’ve incurred by that date — even if you haven’t paid them yet — because if they relate to the current fiscal year, they may be deductible.

Double-check your accounting method: switching between cash and accrual accounting requires care and may require approval.

Why it matters: Properly capturing accruals ensures your financial statements reflect the actual state of your business, which helps you and your advisor anticipate taxable income and deductions — reducing the risk of surprises when you file with the Canada Revenue Agency (CRA).

2. Evaluate Depreciable Assets

If you acquired equipment, technology, furniture or other capital property during the year, now is a good time to assess how you’ll treat those assets for tax. Under Canadian tax rules, you may be able to claim Capital Cost Allowance (CCA) or take advantage of accelerated depreciation incentives.

Key points to consider: The CRA’s Accelerated Investment Incentive (AII) allows eligible properties to receive enhanced first-year allowances. For example, property that would typically be subject to the half-year rule may qualify for up to 1.5 times (or more) the usual deduction.

Investments in technology, specialized machinery, and other productivity-enhancing assets may qualify for immediate expensing or a complete first-year write-off — subject to eligibility and phase-out rules.

Review the date the asset became “available for use,” as this will impact which tax year you can claim the deduction.

If you’re nearing year-end, decide whether to commission or deploy an asset before year-end to maximize first-year tax relief.

Taking this step now means you can structure the acquisition and use of assets to optimize tax relief while aligning with your operational needs.

3. Plan Bonuses and Dividends

For corporations, especially Canadian-controlled private corporations (CCPCs), the decision to declare bonuses or dividends before year-end can have significant tax implications.

Things to review:

If you issue a salary or bonus to an employee (including yourself as a shareholder-employee), ensure payroll processing is completed and remittances are handled. Hence, the deduction falls within the current fiscal year.

If you pay dividends, determine whether they are eligible or non-eligible, and understand the corporation’s ability to pay them without triggering penalties. For example, if eligible dividends exceed certain limits relative to the corporation’s General Rate Income Pool (GRIP), Part III.1 tax may apply.

Assess cash flow: paying bonuses or dividends too late may push the deduction or income recognition into the following year, or reduce tax-planning flexibility.

By planning now, you can align distributions with your year-end results and personal tax position, helping to minimize overall tax paid.

4. Contribute to RRSP

Personal tax planning remains linked to business planning when you’re a business owner or professional. The Registered Retirement Savings Plan (RRSP) remains a valuable vehicle for reducing taxable income. If you have available contribution room, contributing before your applicable deadline — often March 1 of the following year for the previous tax year — is worth considering.

A few considerations:

Ensure you know your RRSP contribution limit (available on your CRA My Account).

Even if you contribute early in the year, the deduction may be claimed for the previous year — but planning enables you to align business profits with personal tax savings.

If you expect elevated income this year, contributing to an RRSP can reduce your marginal tax rate, free up cash flow or create flexibility in your tax strategy.

Putting personal tax planning on the November radar means you’re not waiting until January to scramble to catch up.

5. CRA Installments and Balances

If your business remits tax installments to the CRA (for example, if your corporate tax instalment payments are required) or if you have outstanding balances owing, November is a good time to check your account.

Key actions: Log in to CRA’s My Business Account or My Account and review your instalment history and any notices from CRA.

Ensure you have made sufficient installments to avoid interest charges or penalties. The CRA expects installments to be paid on time based on the current and prior years’ tax.

If your business has a fiscal year-end that differs from a calendar year, make sure you anticipate any balance owing and have mapped out payment timing.

Late or insufficient installment payments can lead to interest and penalties under the Income Tax Act — and often the worst time to find out is after year-end.

By proactively reviewing your CRA payment status, you reduce risk and build confidence as you head into the final stretch.

A well-organized year-end doesn’t just shut the door on penalties — it opens the path to strategic planning for the next fiscal year. At RGB Accounting – Your Mobile Accounting & Tax Solution, we’re committed to helping you wrap up the year with confidence, clarity and control. If you haven’t scheduled your year-end review yet, now is the time.

Let’s make 2025 finish strong and set the stage for 2026. Need support? RGB Accounting can help you file late returns, navigate CRA relief options, or develop a timely tax strategy. Contact us today to get back on track—with confidence.

Source: CRA