What should a small business do to close its books at year-end?

Short answer: before December 31, reconcile your accounts, clean up unpaid invoices and bills, and settle payroll and owner pay decisions. Right after, count inventory and record the odometer. Then file your 2026 slips: T4 and RL-1 for employees and T5 and RL-3 for dividends or interest paid are due by Monday, March 1, 2027, because February 28, 2027 is a Sunday. The CNESST wage declaration goes in before March 15.

Before December 31

Some decisions only count if they happen during the year, so this part can't wait.

  1. Reconcile every bank and credit card account up to the latest statement (see our bank reconciliation guide).
  2. Review unpaid customer invoices. Follow up on what's collectible and flag what isn't for your accountant.
  3. Enter all supplier bills for goods and services received this year.
  4. Run the last payroll properly. Bonuses and owner salary need to go through payroll during the year if you want them on this year's T4 and RL-1.
  5. Gather missing receipts while vendors still remember you.
  6. Plan big purchases with your accountant, since the timing of equipment purchases can change the deduction for the year.

On December 31 or your fiscal year-end

  • Count your inventory. The CRA asks for an actual stock count at the end of each fiscal period unless you use a perpetual inventory system (which still needs periodic counts with a written record). Keep the count sheets with your business records.
  • Write down each vehicle's odometer reading for your logbook (see what the log needs).
  • Count petty cash and record the balance.
  • Download December statements for every account, loan and credit card.

January and February: slips

If you paid salaries, dividends or interest in 2026, you have slips to file with both governments and to give to the people who received the money.

  • T4 and RL-1 for employees, including an owner paid a salary.
  • T5 and RL-3 for dividends or interest your corporation paid.
  • The summaries that go with them, such as the RL-1 summary for Revenu Québec.

The normal deadline is the last day of February. For 2026 slips, February 28, 2027 falls on a Sunday, so both the CRA and Revenu Québec accept them by March 1, 2027. Copies go to employees and recipients by the same date.

The CRA requires online filing if you file more than 5 slips of a type, and Revenu Québec requires it if you file more than 5 RL-1 slips. The CRA's penalty for filing 6 to 50 slips on paper when electronic filing is required is $125, and Revenu Québec charges $100 for each piece of required information left out of a slip. If payroll is new for you, our first-employee article covers the basics.

March to June

  • CNESST: send your wage declaration before March 15, even if you paid no wages during the year.
  • Personal returns for 2026: most people file by April 30, 2027. If you or your spouse are self-employed, the filing deadline is June 15, 2027, but any balance owing is still due April 30, 2027.
  • Corporations and GST/QST: deadlines depend on your fiscal year-end and filing frequency. Our 2027 deadlines article lists them.

After everything is filed

Lock the year in your accounting software so nobody edits a closed period by mistake. Keep your records, receipts, inventory counts and logbooks for at least six years after the end of the last tax year they relate to.

Want us to close your year?

Book a free 30-minute session at soleraaccounting.ca/rendez-vous or call 450 612-7223. We can reconcile your accounts, prepare your T4/RL-1 and T5/RL-3 slips and hand your accountant a clean year. Service in French, English and Arabic.

This article is general information, not personalized accounting or tax advice.

Frequently asked questions

When are T4 and RL-1 slips for 2026 due?

By Monday, March 1, 2027. The usual deadline is the last day of February, and February 28, 2027 falls on a Sunday. The same date applies to T5 and RL-3 slips, and copies go to recipients by then too.

Do I have to count inventory at year-end?

Generally yes. The CRA asks for an actual stock count at the end of each fiscal period unless you use a perpetual inventory system, which still calls for periodic counts with a written record of each one.

Do I file a CNESST wage declaration if I had no employees?

If you're registered with the CNESST, yes. It says the wage declaration must be filed before March 15 each year, even if no wages were paid.

Sources

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