Year-End Tax Planning Checklist for Canadian Entrepreneurs

Bymanager

Introduction

Year-end tax planning is one of the most impactful things Canadian entrepreneurs can do to reduce their tax burden. The decisions you make before December 31st directly affect how much you owe the CRA — and how much stays in your business.

Here is a practical checklist to review with your accountant before the year closes.

Pre-December 31st Action Items

1. Maximize RRSP Contributions

Contribute up to your 2026 limit before year-end to reduce taxable income. Check your Notice of Assessment for your exact contribution room.

2. Defer Income (If Possible)

Invoice clients in January to push income into the next tax year. This is especially effective if you expect lower revenue next year.

3. Accelerate Expenses

Purchase equipment or prepay expenses before December 31st for immediate deductions. Consider:

  • Computer hardware and software
  • Office furniture
  • Prepaid insurance or rent

4. Review Capital Gains and Losses

Offset capital gains with losses from underperforming investments. This strategy — called tax-loss harvesting — can significantly reduce your tax bill.

5. Charitable Donations

Donate before year-end to claim tax credits (up to 75% of net income). Keep all receipts for CRA documentation.

6. Update Payroll Records

Ensure T4s and ROEs are accurate for employees. Review source deductions and remittances to avoid penalties.

7. Reconcile Your Books

Close your books and reconcile all accounts before January. This makes tax filing faster and reduces the risk of errors or missed deductions.

Next Steps

Year-end planning works best when you start early. Book a consultation to review your specific situation and identify savings opportunities.

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