Tax season can feel overwhelming, but a little preparation goes a long way. Whether you’re a sole proprietor, freelancer, or independent business owner in Canada, getting organized early can help you file accurately, avoid delays, and reduce stress.
This checklist walks you through 3 essential steps:
Tax season prep checklist
Step 1: Know your CRA requirements
Before you gather paperwork, make sure you understand the basics of what the CRA expects from your business.
GST/HST obligations
If your business earns more than $30,000 in revenue over the last 4 consecutive calendar quarters, you must:
Register for Goods and Services Tax (GST)/Harmonized Sales Tax (HST)
Collect tax from clients
File and remit payments to the CRA
You may be eligible for the Quick Method, which lets you remit a fixed percentage of collected GST/HST instead of tracking every input tax credit. This option can be helpful for businesses with taxable sales under $400,000, but may not be ideal if you have high business expenses.
Learn more about the Quick Method on the CRA website
Income reporting forms
T2125 – Statement of Business or Professional Activities: Used by self-employed individuals to report business income and expenses
T4A slips: You may receive these from clients who paid you during the year and must include them when filing
Step 2: Gather essential documents
Having your records ready ahead of time can significantly speed up tax filing.
Income records
Invoices or statements from clients
T4A slips issued to you
Expense documentation
Receipts for deductible expenses such as office supplies, advertising, travel, software, etc.
Home office expense records: Calculate the percentage of your home used for business
Vehicle mileage log: Track dates, destinations, kilometers driven, and business purpose
Financial summaries
Profit and loss (P&L) report, or a detailed income and expense record
Registered Retirement Savings Plan (RRSP) contribution statements: Contributions made by March 1, 2026 may reduce taxable income for the tax year
📚 Tips
You can access your HoneyBook tax forms anytime by selecting Finance > Tax Hub from the navigation menu
Need a mailed copy? Email [email protected].
Step 3: Maximize deductions and credits
Understanding available deductions can help lower your taxable income. Common examples include:
Capital Cost Allowance (CCA): Depreciation for business assets like computers, furniture, or vehicles
Business use of home expenses: A portion of rent, utilities, insurance, or property taxes based on workspace usage
Professional development and memberships: Courses, certifications, and industry memberships directly related to your business
Review our guide on common tax deductions in Canada for more examples and details.
Final tips
Plan ahead for next year. If personal and business finances were mixed this year, consider opening a separate business bank account to make tracking income and expenses easier going forward.
With a clear understanding of CRA requirements, organized records, and awareness of deductions, you’ll be well positioned for a smoother tax season. If you’re unsure about any step, a qualified tax professional can help you file with confidence.
Still have questions? Feel free to send us a message by clicking the Question Mark icon on any HoneyBook page. Our team is always happy to help!
HoneyBook Tax Hub is designed to provide information relevant for tax preparation but does not provide tax, financial, or legal advice. It is not a substitute for a licensed professional. Users are solely responsible for the accuracy and compliance of their filings. We recommend confirming any information given here by seeking the assistance of a licensed professional in your area. We do not guarantee completeness, real-time updates, or assume liability for errors, omissions, or penalties.