Year-End Closing Tasks

Closing your books at year-end is more than a routine—it’s your opportunity to confirm profitability, minimize taxes, and prepare for CRA and Revenu Québec filings. Businesses that skip year-end reconciliations or delay adjustments face costly errors, denied deductions, and financial confusion. Mackisen CPA Auditors Montreal provides a full-service year-end closing system that prepares your financials for accurate tax filing, audit readiness, and strategic decision-making.

Legal and Regulatory Framework
Income Tax Act (Canada) Section 230(1): Requires accurate annual accounting records for tax filings.
CRA Policy IC78-10R5: Details standards for maintaining complete year-end financial documentation.
Taxation Act (Quebec) Section 34: Mandates accurate digital reporting for QST and payroll compliance.
CPA Canada Handbook Section 1500–1520: Defines closing procedures and reporting standards for year-end financial statements.
Financial Administration Act (Quebec): Requires retention and audit access to all year-end records.

Key Court Decisions
Beaudoin v. The Queen (2020): Upheld reassessment for missing year-end adjustments.
Simard Beaudry Construction v. Canada (2019): Emphasized importance of finalizing inventory and expense accounts before filing.
Lincora Group v. Quebec (2019): Highlighted penalties for failing to reconcile GST/QST at year-end.
Tremblay Holdings v. The Queen (2021): Reinforced CRA’s right to review retained earnings and year-end reserves.
Desjardins v. Quebec (2021): Validated digital financial statements as CRA-acceptable evidence.

Why CRA Targets / Issues / Enforces
CRA focuses on unbalanced ledgers, unadjusted accounts, and inaccurate closing statements. Businesses that fail to reconcile accounts receivable, inventory, or GST/QST before filing face high reassessment risk. Mackisen CPA Auditors Montreal ensures your books are closed cleanly, reviewed by CPAs, and fully aligned with federal and provincial standards—no surprises at audit time.

Mackisen Strategy
Full Account Reconciliation — Verify all bank, payroll, and vendor accounts.
Inventory Valuation — Update cost of goods and reconcile with sales.
Expense Review — Ensure deductions are valid and supported by documentation.
GST/QST & Payroll Review — Match government remittances with internal records.
Financial Statement Preparation — Produce income statement, balance sheet, and retained earnings reports.
CPA Review & Adjustment — Make final year-end entries to align with CRA standards.
Audit File Compilation — Organize all documents for fast CRA or Revenu Québec response.

Powering Client Needs and Year-End Readiness
A Montreal marketing agency avoided $60,000 in penalties by correcting QST reconciliation errors discovered during Mackisen’s year-end review. A Quebec distributor improved cash flow forecasting with accurate closing reports. A national retailer streamlined its CRA filing process after adopting Mackisen’s standardized year-end checklist.
How Mackisen Clients Benefit

• Accurate year-end financial closure

• Audit-ready digital documentation

• Reduced tax liability through proactive review

• Faster CRA filing and refund processing

• Annual CPA insights for growth and forecasting

Common Questions
What is the deadline for year-end closing? Typically three months after fiscal year-end, before corporate filing.
Can I carry expenses forward? Some, depending on CRA eligibility—our CPAs review them individually.
Do I need a CPA to close books? Yes, for compliance and accuracy.
Does CRA require backup documentation? Absolutely—retain receipts, ledgers, and digital statements.
Will Mackisen handle year-end filings? Yes, from closing entries to tax submission and audit preparation.

Why Mackisen
Mackisen CPA Auditors Montreal simplifies your year-end closing with accuracy, oversight, and automation. We combine bookkeeping, payroll, GST/QST reconciliation, and financial statement preparation into one complete package that keeps you compliant, confident, and ready for the next fiscal year.