By August, a self-employed tax plan should be more than a folder of receipts. You have enough information to estimate the year, identify missing records and make deliberate choices before December.
This calendar is a planning tool for Canadian sole proprietors. Corporate, payroll, GST/HST and provincial obligations can have different due dates, so confirm the dates that apply to your accounts.
August: reconcile the year to date
- Match income records to bank deposits, invoices and platform statements.
- Categorize business expenses and attach the supporting receipt or invoice.
- Reconcile GST/HST collected and eligible input tax credits if registered.
- Update vehicle mileage and home-office records while details are recoverable.
- Separate owner withdrawals and personal purchases from business expenses.
CRA requires records detailed enough to support obligations and entitlements. Electronic accounting, point-of-sale and online business records count too; a bank or credit-card statement alone may not explain the business purpose.
September: review instalments and the forecast
Individual income-tax instalments are generally due March 15, June 15, September 15 and December 15 when CRA requires them. A person may have to pay instalments when net tax owing is more than $3,000 ($1,800 in Quebec) for the current year and either of the two previous years. Confirm the current threshold and your instalment requirement with CRA.
Before the September 15 date, compare your current income forecast with the instalment method you are using. Paying less than the CRA reminder without a supportable calculation can create interest. Paying the reminder may be the simpler risk-control choice when income is uncertain.
October: check GST/HST and operating changes
Review whether worldwide taxable supplies are approaching the $30,000 small-supplier threshold. The rule behaves differently when the threshold is exceeded in one quarter versus over four consecutive quarters, so seek advice before crossing it.
Also capture business changes that affect the return: new equipment, financing, use of a workspace, subcontractors, employees, foreign clients or a change in business structure.
November: prepare year-end decisions
Estimate full-year revenue, deductible expenses, CPP contributions and taxable income. Then prepare questions—not last-minute transactions—for your accountant or tax professional:
- Is equipment a current expense or capital property?
- Are mixed-use expenses supported and reasonably allocated?
- Should an invoice, bonus or purchase be timed differently for a valid business reason?
- Do GST/HST, payroll, foreign reporting or incorporation questions need separate advice?
- How much cash should remain reserved for tax and remittances?
Spending $1 to obtain a deduction never saves $1 of tax. The purchase still needs to be useful and affordable.
December: close cleanly
- Review any required December 15 individual tax instalment.
- Complete mileage and inventory records, if relevant.
- Download annual platform, payment-processor and investment statements when available.
- Back up records and keep a read-only year-end copy.
- List outstanding invoices and unpaid business expenses.
- Schedule the preparation handoff before filing season.
As a general rule, CRA says tax documents and records should be kept for at least six years. Some records must be retained longer, so confirm before destroying anything.
Build one accountant-ready package
Use a consistent structure: income, expenses, GST-HST, vehicle, home office, assets and financing, CRA correspondence, prior return and notice of assessment, plus a one-page list of changes and questions.
Good records do more than make filing easier. They help you understand the business while there is still time to make a considered decision.
Continue exploring
Official references
- CRA: required tax instalments for individuals
- CRA: self-employed income guide and key dates
- CRA: keeping business records
- CRA: GST/HST registration threshold
This article is educational and does not replace advice from a qualified tax or accounting professional.