LCT Accounting Services
Tax-Ready & Audit-Ready Checklist for Canadian Small Businesses
Strong records don’t just make tax season easier—they save money, reduce CRA risk, and support business growth. Use this checklist to stay organized year-round.
Receipts and Documentation
☐ Keep all business receipts (digital or paper)
☐ Ensure receipts show date, vendor, amount, and GST/HST
☐ Store receipts in one system (cloud folder or attached in QuickBooks)
☐ Retain records for at least 6 years
Expense Categegorization
☐ Categorize expenses correctly each month
☐ Clearly separate personal and business spending
☐ Review uncategorized transactions monthly
☐ Pay special attention to meals, vehicle, home office, and equipment
Quickbooks Monthly Maintenance
☐ Match deposits to invoices or sales records
☐ Review “Ask My Accountant” and suspense accounts
☐ Lock reconciled periods to prevent changes
Payroll and CRA Compliance
☐ Maintain up-to-date payroll records
☐ Reconcile payroll to CRA remittances
☐ Remit source deductions on time
☐ Retain payroll reports, T4s, and summaries
Sales, Contracts & Invoices
☐ Keep copies of all issued invoices
☐ Retain signed contracts and agreements
☐ Maintain backup for large or unusual transactions
☐ Use clear file names (date, vendor, amount)
Tax Filing and Government Accounts
☐ File GST/HST returns on time
☐ Retain copies of T1/T2 returns and schedules
☐ Save CRA Notices of Assessment
☐ Track installments and balances owing
Annual Review (Highly Recommended)
☐ Review books before year-end
☐ Confirm capital assets, depreciation (CCA), and shareholder items
☐ Address issues early to avoid penalties and rush fees
CPA Tip: If it isn’t documented, CRA may deny it.