Guide
Year-end bookkeeping checklist for Canadian sole proprietors and freelancers
What a self-employed Canadian needs ready for their accountant at year end, the CRA deadlines that matter, and the mistakes that cost the most to fix in April.
Last reviewed 5 min readRead as Markdown
Before year end, a sole proprietor should have every receipt captured and categorised, bank and card statements reconciled, income matched to invoices, unpaid invoices reviewed, the GST/HST collected and paid totalled, the vehicle log and home-office figures ready, and a list of equipment bought. For a 31 December year end, the return is due 15 June but any balance owing is due 30 April, and interest runs from 1 May.
- Filing deadline
- 15 June for most self-employed individuals
- Payment deadline
- 30 April
- Interest on unpaid tax
- From 1 May
- Instalments
- Quarterly if net tax owing exceeds $3,000
- Form
- T2125 with the T1 return
- Records
- Keep six years
What do I need ready for my accountant at year end?
- Capture every receiptPaper, PDF and emailed invoices, including the US-dollar software and advertising charges that never produce paper.
- Categorise expensesEvery expense in a category that maps onto a T2125 line, with meals kept separate so the 50% limit can be applied.
- Reconcile statementsMatch every line on the business bank and card statements to a receipt or an invoice, and list anything you could not match.
- Total your incomeEvery invoice issued in the year, matched to the payments received. Include income from platforms and cash sales.
- Review unpaid invoicesChase what is collectable and flag what is not; a genuinely uncollectable invoice you already reported may be a bad debt.
- Total the GST/HSTTax collected on sales and tax paid on purchases, if you are registered, and check whether you passed the $30,000 small supplier threshold if you are not.
- Prepare the vehicle figuresOdometer at the start and end of the year, business kilometres from the log, and all vehicle receipts.
- Prepare the home-office figuresOffice and home floor areas, and the year's rent or mortgage interest, utilities, insurance and property tax.
- List capital purchasesComputers, furniture, tools and vehicles bought or sold in the year, with dates and receipts, for capital cost allowance.
When are the tax deadlines for self-employed Canadians?
| Date | What is due |
|---|---|
| 30 April | Payment of any income tax balance owing for the previous year |
| 15 June | Filing of the T1 return with Form T2125 |
| 15 March, 15 June, 15 September, 15 December | Income tax instalments, if required |
| Depends on your reporting period | GST/HST returns and payment, if registered |
Instalments generally apply when your net tax owing is more than $3,000 in the current year and in either of the two previous years ($1,800 in Quebec). The CRA sends reminders when it expects them. Annual GST/HST filers who are individuals with business income generally have the same 15 June filing date and 30 April payment date.
Which year-end mistakes cost the most?
- Paying late because the June filing date looked like the payment date.
- Missing US-dollar expenses because the receipts lived in an inbox, or converting them at the year-end rate instead of the transaction-date rate.
- Claiming meals at 100%.
- Deducting a laptop in full instead of through capital cost allowance.
- Recording expenses including GST/HST and also claiming the tax as an input tax credit — deducting the same tax twice.
- Reconstructing a year of mileage from memory in April.
How do I make next year's year end easier?
Move the work to the day the receipt arrives. If every receipt is captured, categorised and tax-split as it comes in, year end is an export and a reconciliation rather than a week of typing. SimpleLoonie is built for that: it reads each receipt with AI, separates GST, HST, PST and QST, converts foreign currency at the transaction-date rate, files it in your categories, and exports the year to Excel or CSV for your accountant, with every receipt image attached. The invoice generator on the same account keeps your income records in the same place.
Frequently asked questions
When is the tax deadline for self-employed people in Canada?
Self-employed individuals with a 31 December year end must file by 15 June, but any balance owing must be paid by 30 April. Interest on unpaid tax starts on 1 May, so the earlier date is the one that costs money if missed.
What documents does my accountant need at year end?
Categorised expenses with receipts, reconciled bank and card statements, a list of invoices and payments received, GST/HST totals if registered, your vehicle log and total kilometres, home-office measurements and costs, and details of any equipment bought or sold during the year.
Do self-employed people have to pay tax in instalments?
Generally if your net tax owing is more than $3,000 in the current year and in either of the two previous years, or $1,800 in Quebec. Instalments are due 15 March, 15 June, 15 September and 15 December, and the CRA sends reminders with suggested amounts.
Can I do my own year-end bookkeeping as a sole proprietor?
Yes. Many sole proprietors keep their own books and either file themselves or hand a clean file to an accountant for the return. The more of the capture and categorising you do during the year, the less the year-end review costs.
How long should I keep my year-end records?
Six years from the end of the tax year they relate to, and longer for records of equipment you are still depreciating or for any year under objection or appeal. Digital copies are acceptable if they are legible and complete.
Sources
- Canada Revenue Agency — Tax deadlines for businesses and self-employed individuals
- Canada Revenue Agency — Due dates for amounts you owe
- Canada Revenue Agency — Guide T4002, Chapter 1: General information
This page is general information about Canadian tax administration, not tax advice, and it was last reviewed on . Rules and rates change. For a decision that matters to your business, check the source above or talk to an accountant.