Year end is a time when you prepare records for your tax return, and evaluate your business progress. What decisions do you need to make regarding business planning? What do you owe and what are you owed?
When you first set up your business, you must define your year-end date for tax reporting purposes. When determining the end of your business year, the year can end at the end of the calendar year, tax period or fiscal year. As different businesses have different reporting requirements, you should check with your accountant to help determine when you should set up your year-end date.
What are year-end activities?
Year-end activities primarily include tax reporting, to generate the required reports for your federal and provincial tax returns, filing forms for contractors, generating payroll forms, and backing up your data for safe record-keeping.
Sage 50 Accounting keeps up to seven years
- Check if you need to report on GST or HST
- Check if you need to report on QST
- Modify tax reports, if required.
Note: The sales tax reports for Sage 50 Accounting may not include all sales taxes that you have collected. For example, employee income that includes GST, HST, or QST-taxable benefits is not included. You may need to add these amounts to your sales tax report.
- Back up your company data.
- Fill out your sales tax returns: GST/HST and QST.
- Pay your taxes: GPS/HST or QST or Record a refund: GST/HST or QST.
- File a T5018 form for amounts paid to contractors.
- Electronically file (optional) T4,and RL-1 slips.
- Check your data integrity.
- Print audit trail reports.
Before you start a new calendar year, do the following:
Before you start a new fiscal year, do the following:
What happens after I finish my year-end activities?
Sage 50 Accounting automatically enters the balances from all revenue and expense accounts into the Retained Earnings account for the new year. It also accumulates balance -forward amounts for projects and makes these balances available for your project reports.
The first time you enter a session date for a new fiscal year, Sage 50 Accounting automatically closes your revenue and expense accounts, moves their balances into the Retained Earnings account for the new year, and sets their balances to zero.
When you advance into a new year, the Fiscal Start date of the company's new accounting year moves to the day after the current Fiscal End, and the next Fiscal End changes to 12 months after the new Fiscal Start date.