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How to Prepare Your Books for Tax Season

The quality of your tax return depends entirely on the quality of your books. When your Mesa CPA advisor goes to prepare your T2, they work from your financial records — accurate books mean an accurate return, faster turnaround, and fewer surprises.

What You'll Need

  • All monthly books closed and reconciled to year-end
  • Bank and credit card statements for the full year
  • Receipts and supporting documents for all expenses
  • Details on any unusual transactions (large purchases, loans, disposals)
  • Your Mesa CPA bookkeeper (to confirm the books are ready)

Normal Procedure

Step 1: Make sure all transactions are recorded

Before your books go to your accountant, confirm with your Mesa CPA bookkeeper that:

  • All invoices for the year have been issued and recorded
  • All supplier bills have been entered
  • All bank and credit card transactions are categorized
  • All payroll runs are complete and remittances are reconciled
  • GST/HST is reconciled and returns are filed to year-end

Transactions that land in January but relate to the prior year (a December invoice paid in January, for example) need to be allocated to the correct period.

Step 2: Reconcile all accounts to year-end

Your bookkeeper will reconcile:

  • All bank accounts and credit cards to the December 31 (or fiscal year-end) statement
  • Accounts receivable — confirm the balance matches outstanding invoices
  • Accounts payable — confirm the balance matches outstanding bills
  • Payroll liabilities — confirm all remittances are current
  • GST/HST — confirm the payable/receivable balance is correct

Step 3: Compile year-end schedules

Your Mesa CPA advisor will typically need:

Schedule

What it is

Fixed asset additions/disposals

Any assets bought or sold during the year

Loan balances

Outstanding balances and interest paid on all loans

Shareholder loan reconciliation

Running balance of the shareholder loan account

Government remittances confirmation

Confirmation that payroll, GST/HST, and prior year taxes are all current

Any significant one-time items

Large write-offs, settlements, unusual transactions

Your Mesa CPA bookkeeper prepares most of these from QBO — you may be asked to confirm details or provide documentation.

Step 4: Provide supporting documents

Keep organized copies of:

  • Receipts for all expenses (digital copies acceptable)
  • Invoices for significant asset purchases
  • Loan agreements and statements
  • Any contracts with significant financial implications

You don't need to submit all of these upfront — your Mesa CPA advisor will request what they need. But having them ready avoids delays.

Abnormal Procedures

Your books are several months behind at year-end.

Catch-up bookkeeping before filing is essential — filing from incomplete books risks an inaccurate return. Let your Mesa CPA team know as soon as possible. There may be a deadline extension strategy if the catch-up will take time.

You have transactions you're not sure how to classify.

Make a list and bring it to your Mesa CPA bookkeeper before year-end close. Better to have a conversation upfront than to discover a problem during tax prep.

You have a significant new transaction type this year (new revenue stream, first asset purchase, first employee).

Flag it to your Mesa CPA advisor before year-end — they may need to set up new accounts or handle the accounting differently than your existing transactions.

 

FAQ

How far in advance of the filing deadline do I need books ready?

Aim to have your books ready for review 4–6 weeks before your filing deadline. For a December 31 year-end, that means March is a reasonable target. This gives your advisor time to prepare the return without rushing and allows time to respond to any questions.

Can my accountant just work with QBO directly?

Yes. Your Mesa CPA team has access to your QBO file and will work from it directly. You don't need to export or email anything unless they specifically request it.

What if I get a CRA request for information during tax prep?

Let your Mesa CPA advisor know immediately. Don't respond to the CRA independently — they'll handle it or guide you on the appropriate response.

Do I need to keep physical copies of receipts?

No. The CRA accepts digital copies (photos, PDFs, scanned documents). The key is that they're legible, complete, and accessible for 6 years.