3 Things to Do Before Tax Season
Tax season doesn't have to be a scramble. Here are three things you can do right now to make your life infinitely easier when it's time to file:
1. Reconcile Accounts (Yes, All of Them)
I know, I know. Reconciling sounds boring, but here's the thing - if you have good bookkeeping processes in place, reconciling takes no time, is pretty straightforward and so satisfying. Either way, it's the difference between a smooth tax season and a chaotic one.
Go through each business chequing account, savings account, credit card, and loan account and make sure everything in your bookkeeping software matches what actually happened. Look for transactions you missed, duplicates you entered twice, and anything that seems off.
Why this matters: Your tax preparer needs accurate numbers. If your books don't match your bank statements, they can't do their job properly, and you might miss deductions or, worse, report incorrect income.
Pro tip: If you're months behind on reconciling, don't try to each account all at once. Start by reconciling January for all accounts before moving onto February, and so on. That way if you run into any errors, you aren’t having to undo all your hard work.
2. Gather Tax Documents
Start collecting your documents early. This includes things like:
Property tax statements
Mortgage interest statements
Any T4As or other tax slips you've received
Receipts for major purchases or expenses
Documentation for any business assets you purchased
Why this matters: Waiting until March to hunt for these documents is stressful and you're more likely to miss something important.
Pro tip: Create a "Tax Season 2025" folder (physical or digital) and put everything in there as it arrives. Future you will be grateful.
3. Review Expenses for Anything Unusual
Take a look through your expense categories and flag anything that might need explanation or additional documentation. This might include:
Large or unusual purchases
Travel expenses (make sure you have receipts and business justification)
Home office expenses
Any expenses that could be considered personal rather than business (especially those meals and entertainment expenses!)
Why this matters: Your tax preparer will have questions about unusual items, and having the answers ready speeds up the process and ensures you're claiming everything you're entitled to.
Pro tip: If you're not sure whether something is deductible, flag it for discussion rather than just excluding it. Your tax preparer can help you determine what's legitimate.
Bonus: Set Yourself Up for Next Year
While you're thinking about taxes, consider what would make next year easier:
Set up a system for tracking mileage if you use your car for business
Create a process for saving receipts digitally
Start tracking home office expenses if you work from home (utilities, rent/mortgage portion, office supplies)
Schedule monthly check-ins with your books so you're in the know and up-to-date
Let’s be real - none of these tasks are fun, but spending a few hours now can save you days of stress later. Plus, your tax preparer will love you for showing up organized, and you'll get better service at a better price because they can focus on strategy rather than cleanup.
Need help getting caught up before tax season? Sometimes it makes sense to get professional help with the catch up so you can start fresh next year. Feel free to reach out if you want to chat about what that might look like by booking a Discovery Call.
I'm launching personal tax services in early 2026 - same trauma-informed approach, now for your personal returns. Want to be the first to know when it's available?
