A corporate tax return is only as accurate as the information behind it. Missing invoices, incomplete payroll records or unsupported expense claims create problems that slow down your filing, reduce your deductions and increase your CRA exposure. LevelTax sends every new corporate client a document checklist at the start of their engagement — and follows up on anything missing before preparing the return. This guide covers the full picture of what a typical business needs to provide.
Why good documentation matters
The CRA can request supporting documentation for any item on your return for up to six years after filing. That means the receipts and records you provide to your accountant today may need to be produced again years from now. Digital records kept in an organized system are just as valid as paper and considerably easier to retrieve.
Beyond CRA compliance, thorough records allow your accountant to identify every legitimate deduction available to your business. The most commonly missed deductions are not obscure — they are simply expenses that were not recorded, not categorized or not supported with documentation. LevelTax works with clients throughout the year on bookkeeping to ensure this problem does not arise at year end.
Income and revenue records
- Sales invoices and revenue summaries for the fiscal year
- Bank statements for all business accounts
- Records of any other income: interest, rental, government grants or subsidies
- Prior year financial statements (for comparison and continuity)
- Accounts receivable aging report at year end
Bank statements are one of the most reliable ways to verify that all revenue has been captured. LevelTax reconciles your bank records against your income summary as a standard step in our year-end process.
Expense and deduction documentation
- Receipts and invoices for all business expenses (categorized if possible)
- Office and home office expense records if applicable
- Vehicle log and receipts if claiming business vehicle use
- Meal and entertainment expense log with business purpose noted
- Professional development and membership fees
- Software subscriptions and technology expenses
- Lease or rent agreements for business premises
Not sure which expenses are deductible?
LevelTax reviews your expense categories as part of every corporate engagement. We flag deductions you may have missed and confirm which claims are supported. Get in touch and we will walk through it with you.
Payroll and compensation records
- T4 summaries and slips for all employees
- Records of payroll remittances made to the CRA throughout the year
- Shareholder salary or management fee records
- Records of any employee benefits provided
If LevelTax handles your payroll, we already have these records and include them in your year-end package automatically. If payroll is handled elsewhere, we will need copies as part of your document package.
HST and sales tax records
- HST returns filed during the fiscal year
- Confirmation of HST remittances paid
- Records of Input Tax Credits (ITCs) claimed
- Any correspondence with the CRA regarding HST
What to do if your records are incomplete
Incomplete records are more common than most business owners admit. A busy year, a software switch or simply not keeping on top of receipts can leave gaps at year end. The right approach is not to panic but to work with your accountant to reconstruct what is recoverable and document the rest to the best of your ability.
LevelTax works through gaps in records as a routine part of our year-end process. Bank statements can often replace missing receipts for categorization purposes. Consistent patterns across months can support claims that would otherwise be unsupported. We work through these issues with you rather than simply refusing to proceed.
Going forward, the answer to incomplete records is ongoing bookkeeping rather than a year-end scramble. LevelTax offers monthly bookkeeping for incorporated clients specifically to eliminate this problem.
Records in rough shape? We can help.
LevelTax handles bookkeeping cleanup as part of our year-end process. Get in touch and we will review what you have and tell you exactly what is needed before filing.
Let LevelTax handle it
From bookkeeping to your filed T2, LevelTax manages the full year-end process
We collect your documents, fill the gaps, prepare your financial statements and file your corporate return — with flat-rate pricing confirmed before we start.
Bottom line
The easiest year-end is one where you have been keeping records throughout the year.
Monthly bookkeeping through LevelTax means your year-end documents are always up to date. When tax time arrives, the heavy lifting is already done. If you are starting from scratch, we will work with what you have — and then set up a system so next year is easier.
Learn about LevelTax bookkeeping services