Corporate Tax Filing Deadlines for 2025
December 19, 2024
Don't let managing your business finances overwhelm you—it's simpler than you think! Our handy small business accounting checklist will show you the ropes and keep you on top of your money matters. Plus, with our recommended timeline, tax season will be a breeze. Say goodbye to scrambling through receipts and hello to organized, up-to-date financial reports. You'll be running your business like a boss in no time!
Read through for in-depth coverage of your required tasks for each reporting period.
Cash flow is critical to business operations. Regular assessment of your cash position is essential. Begin each day by determining your available cash balance and forecasting inflows and outflows for the upcoming week or month. This proactive approach helps maintain financial stability and supports informed decision-making.
Regularly record each transaction—such as billing customers, receiving cash from customers, and paying suppliers—in the appropriate account either daily or weekly, depending on your transaction volume. While it's possible to manually enter data using Excel tips, tricks, and templates, utilizing small business accounting software like QuickBooks is more efficient and reliable.
If you're still manually inputting data into spreadsheets, consider how QuickBooks stacks up against Microsoft Excel and Google Sheets. Discover the advantages of QuickBooks over traditional spreadsheets for small business accounting.
Maintain copies of all invoices sent, all cash receipts (including cash, cheque, and credit card deposits), and all cash payments (such as cash, cheque, and credit card statements).
Create a supplier file organized alphabetically (e.g., Staples under “S”, Costco under “C,” etc.) for easy access. While it's common to collect all paper receipts in a box and sort them at tax time, this approach is inefficient unless you have a minimal number of transactions. It's more effective to keep separate files for different types of receipts and organize them as they come in. Many accounting software systems allow you to scan paper receipts, eliminating the need for physical files entirely.
Maintain a dedicated “unpaid suppliers” folder for your business. This folder should include a record of each supplier, detailing billing dates, amounts due, and payment due dates. If suppliers offer discounts for early payments, consider taking advantage of these opportunities, provided you have the cash flow to do so.
Keep track of your accounts payable and ensure you have sufficient funds allocated to pay your suppliers on time. Timely payments help you avoid late fees and maintain good relationships with your suppliers. If possible, negotiate extended payment terms, such as net 60 or net 90 days, to improve your cash flow.
Include clear payment terms on all invoices. Typically, invoices are due within 30 days, indicated as “Net 30” at the bottom. Without a specified due date, forecasting monthly revenue becomes challenging. To ensure timely payment, use a detailed invoice template that includes essential elements such as payment terms, itemized charges, and your payment address.
Effective cash flow management is essential, particularly in your business's first year. Forecasting your cash needs for the upcoming weeks and months helps ensure you have sufficient funds to cover bills, including payments to employees and suppliers. Additionally, it allows you to make more informed decisions about spending.
Create a straightforward cash flow statement that includes your current cash position, anticipated cash receipts for the coming week/month, and expected cash payments for the same period.
Just as you would balance your personal checking account, it’s crucial to reconcile your business checkbook each month to ensure the accuracy of your cash transactions. Regularly reconciling your cash helps you maintain an accurate understanding of your financial position. This process allows you to identify and correct any errors or discrepancies made by either yourself or the bank, ensuring timely resolutions and accurate financial records.
Incorporate an “aging” column to categorize open invoices by the number of days they are past due. This provides a clear view of outstanding customer payments. The start of each month is an ideal time to send overdue reminder statements to customers, clients, and anyone else who owes you money.
At the end of your financial year, revisit this account to assess which receivables should be sent to collections or written off for a deduction.
If you manage inventory, regularly set aside time to reorder fast-selling products and identify items that are moving slowly, marked down, or written off. By frequently checking and comparing current inventory levels to previous months' data, you can make necessary adjustments to avoid being short or overstocked. Inventory management software can further streamline this process by automating tracking and providing low-stock alerts.
Even though you have a regular schedule for paying your employees (typically monthly), it's crucial to comply with payroll tax requirements, which may vary based on different regulations. Ensure you withhold, report, and deposit the applicable taxes to the appropriate agencies on the required dates.
Review the payroll summary before disbursing payments to avoid corrections in the next payroll period. Utilizing a payroll service provider can save time and ensure accuracy at a reasonable cost. Additionally, you can use our free paycheck calculator to determine the necessary deductions from each paycheck.
Your profit and loss statement (P&L statement, or income statement) for both the current month and year-to-date provides insight into your earnings and expenditures. Regularly compare this data to your budget (monthly or quarterly) to identify areas where spending may be excessive or insufficient, allowing you to make necessary adjustments.
If you haven't prepared a budget, compare your current year-to-date P&L with the same period from the previous year to identify variances and make informed adjustments.
Compare your balance sheet at the end of the month—for example, June 30, 2023—to a balance sheet from an earlier date, such as December 31, 2022. This comparison provides a clear picture of how you are managing assets and liabilities. Look for significant increases or decreases and understand the reasons behind them. For instance, if accounts receivable have increased, determine whether this is due to a rise in recent sales or slower payments from customers.
Ensure all bank accounts, credit cards, and other financial accounts are reconciled. QuickBooks Online can automate this process. Performing bank reconciliation at the end of each month helps identify discrepancies between your records and actual transactions.
Examine your general ledger to verify that all transactions are accurately recorded in the correct accounts. This step helps identify any errors or discrepancies in your books.
After reconciling accounts and reviewing your general ledger, make necessary adjustments to your journal entries to correct any errors or discrepancies. Adjust accruals, prepayments, or depreciation as needed.
Temporarily halt new entries in revenue and expense accounts from the previous month to ensure the accuracy of financial statements. This helps reflect the true performance of the business for that period.
Examine your accruals and deferrals to gain a comprehensive understanding of your monthly performance. Carefully review any modifications to ensure they are properly recorded and calculated.
Calculate depreciation for assets such as equipment or machinery that lose value over time. Documenting monthly depreciation ensures the balance sheet accurately reflects the current value of your assets. This process prevents overestimating asset worth by spreading the cost over their useful life.
Reconcile your bank statements every month as part of your routine accounting tasks. This involves ensuring that the transactions recorded in your records match the actual transactions in your bank account. Any discrepancies should be resolved and rectified immediately.
This practice is crucial for maintaining accuracy in your financial reports and ensuring that future tasks are based on reliable data. Regularly checking your bank statements also promotes transparency and accountability.
Reviewing accounts receivable involves checking for overdue payments and sending reminder statements to clients with outstanding balances. This helps businesses manage their financial health by ensuring timely payments. It also allows you to identify patterns or clients who consistently delay their payments.
Managing accounts receivable goes beyond financial management—it fosters positive client relationships through clear communication about payment expectations. This proactive approach supports financial stability and client satisfaction, ensuring a healthy cash flow for your business.
Verifying accounts payable is a vital monthly task to ensure financial accuracy and stability. Carefully review all bills and invoices to ensure they match your accounting records. Make timely payments to avoid late fees and maintain good relationships with suppliers.
This process helps manage cash flow effectively and prevents potential disruptions. By verifying accounts payable, you ensure your financial records are reliable, payments are prompt, and your business remains financially healthy.
Evaluate your financial performance by:
In addition to your semi-monthly payroll reports, check if your county requires quarterly payroll reports and any remaining quarterly payments. It's advisable to have your payroll service provider complete and file these reports. Your role is to review them to ensure they are accurate and reasonable.
If your business operates in a state that requires sales tax, ensure compliance to avoid serious penalties. Review and make quarterly sales tax payments as required.
In states with income taxes, you are required to pay estimated income taxes. Review your year-to-date P&L to determine if you owe any estimated taxes for the quarter. Consult your tax accountant for assistance if necessary.
Examine significant past-due receivables and decide whether you believe customers will eventually pay. Determine if you should send past-due bills to a collection agency or write them off for a deduction.
Assess your current inventory to determine the value of unsold items. Writing down unsellable inventory provides a deduction on your year-end taxes. Failing to do so overstates your inventory balance and results in paying additional taxes.
At tax time, thoroughly review your company’s full-year financial reports before submitting them to your accountant. Before signing your return, ensure its accuracy based on your full-year financial reports. If an auditor finds any underpayment of taxes, you will be responsible for any additional taxes, penalties, and interest—not your accountant.
As the year draws to a close, it is crucial to review your financial statements, including the income statement, balance sheet, and cash flow statement. The income statement reveals trends in profitability, while the balance sheet assesses financial stability.
Analyzing your cash flow statement provides valuable insights into cash management, helping you make informed decisions and plan your finances effectively for the coming year.
Reviewing inventory levels is an essential part of year-end accounting. This involves thoroughly examining your existing stock to ensure recorded quantities match actual quantities. Conducting physical counts guarantees inventory accuracy.
Assess the market value of your inventory and make necessary adjustments based on physical counts and market conditions. This process resolves discrepancies, ensures accurate financial reporting, and aids strategic decision-making for the upcoming year.
At year-end, evaluate your business performance by comparing actual achievements with initial goals and targets. Analyze financial metrics, operational milestones, and customer satisfaction to gain insights into the effectiveness of your strategies and the accuracy of your forecasts.
These insights will form a solid foundation for strategic planning in the upcoming year.
Maintaining financial health requires meticulous documentation and record-keeping. Preserve receipts, bills, and contracts securely. Organizing receipts helps track spending, sorting bills ensures timely payments, and safeguarding contracts ensures legal compliance.
Arrange tax documents, bank statements, and financial reports systematically to guarantee record accuracy. Safely storing these documents, whether physically or digitally, protects sensitive financial information, ensuring confidentiality and regulatory adherence.
Managing your small business finances can be streamlined with the right approach. By following our detailed checklists, you can keep your financial records organized and stress-free. If managing these tasks becomes overwhelming, consider outsourcing accounting services. Professional accountants can handle your finances efficiently, allowing you to focus on growing your business. Embracing these strategies and outsourcing options will turn your accounting into a powerful asset for your business.
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