How to Prepare Your Business for Year-End Tax Planning

As the year draws to a close, business owners in Markham and across Ontario are turning their attention to one of the most critical aspects of financial management: year-end tax planning. At Lott & Company Professional Corporation, our experienced Chartered Professional Accountants understand that navigating tax regulations, maximizing deductions, and ensuring compliance can be overwhelming without expert guidance. That’s why preparing early and following a structured year-end tax planning process can make a significant difference—not only in your tax liabilities but also in the future success of your business.

The Importance of Year-End Tax Planning for Markham Businesses

Proper year-end tax planning is more than just filling out numbers on a form—it’s about taking a proactive approach to your entire business’s financial health. For business owners in Markham’s fast-growing sectors—from technology and medical services to construction and wholesale—staying ahead of tax deadlines and regulations ensures peace of mind and frees you to focus on what matters most: running your business.

Key Steps to Prepare Your Business for Year-End Tax Planning

• Organize Your Financial Records Before you begin any tax planning, ensure that your bookkeeping and record-keeping are up to date. Accurate financial statements not only make tax preparation easier but also help identify eligible deductions and credits.
• Review income statements, balance sheets, and cash flow statements
• Gather all supporting documentation, including expense receipts, invoices, and payroll records
• Reconcile bank accounts and review all outstanding invoices

Review Business Expenses for Potential Deductions

Ontario businesses can take advantage of a variety of deductions. Reviewing your expenses now ensures nothing is missed during tax filing.

• Office supplies and equipment
• Salaries and wages
• Home office expenses, if applicable
• Vehicle and travel costs
• Professional fees and business advisory costs

Evaluate Tax Credits and Tax Strategies

Tax incentives and credits can change year-to-year. Collaborate with a local Markham accountant who is knowledgeable about federal and provincial tax credits relevant to your industry.

Research and development credits (especially for technology companies)

• Investments in green energy or capital assets
• Owner compensation strategies and dividend planning
• Deferring income or accelerating expenses to optimize your taxable income

Prepare for Payroll and Employee Benefits Reporting

Year-end brings important payroll obligations. Review your payroll management systems to ensure all employee information is current and statutory deductions are accurate.

• Verify T4 and T5 slips are complete and correct
• Reconcile payroll accounts for accuracy
• Review employee bonuses or profit-sharing plans

Plan for Estate and Succession Strategies

If your business is family-run or you’re considering succession, now is the time to review your estate and succession planning. Effective planning today prevents future tax challenges.

• Review share structure and ownership changes
• Update your will and powers of attorney
• Consider tax implications of transferring ownership or assets

Consult with a Markham tax professional.

Tax laws and business needs evolve. An experienced Chartered Professional Accountant in Markham, like those at Lott & Company, can help your business stay compliant, file on time, and optimize your tax strategy for the coming year.

Why Work With Lott & Company Professional Corporation?

At Lott & Company Professional Corporation, we specialize in helping Markham businesses—from start-ups to established enterprises—successfully manage their tax preparation and year-end planning. Our robust suite of services includes bookkeeping, tax strategy, audit & assurance, payroll management, business advisory, and estate planning.

Working with our knowledgeable accountants means

• Confidence your financial records are accurate
• Peace of mind knowing you’re maximizing eligible deductions
• Strategic insight tailored to your industry and business goals

Get Ready for a Smooth Year-End—Contact Us Today

As the year comes to a close, don’t let year-end tax planning become a last-minute scramble. With professional support from Lott & Company Professional Corporation in Markham, you can ensure your business is poised for financial success. Our local expertise and personalized service help you navigate complexities, reduce tax liabilities, and position your company for growth in the year ahead.

Contact our Markham office today to schedule a year-end tax planning consultation, and discover how we can help your business thrive. Let Lott & Company be your trusted partner in accounting, tax planning, and business success.