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Bookkeeping vs. Accounting: What’s the Difference? (7 Key Differences for Canadian Businesses)

Accounting and Bookkeeping files.
Bookkeeping /

Bookkeeping is the day-to-day recording and organizing of financial transactions, while accounting uses those records to interpret results, prepare reports, and support compliance and decision-making. Bookkeeping and accounting serve different purposes at different business stages. Seven key differences: Frequency — daily capture vs periodic review Inputs vs outputs — transactions to statements Journal entries vs […]

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What Is the Penalty for Filing Corporate Taxes Late? (6 CRA Rules for Late T2 Returns in Canada)

Girl getting frustated
CRA Compliance /

CRA charges a late-filing penalty of 5% of the unpaid tax due on the filing deadline, plus 1% for each complete month the T2 return is late, up to a maximum of 12 months. (Penalties for failing to file a T2 return) The penalty doubles to 10% plus 2% per month (maximum 20 months) when

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What Is Corporate Tax Filing in Canada? T2 Return Explained (6 Core Rules)

Tax Filing with documents.
Corporate Tax /

Corporate tax filing in Canada is the process of preparing and submitting a T2 Corporation Income Tax Return (T2 return) to the Canada Revenue Agency (CRA) for each corporate tax year (fiscal period). (Corporation income tax return) Here are the 6 rules that define what corporate tax filing means in practice: You file a T2

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Corporate Tax Filing Deadline for 2025 in Canada: T2 Filing Due Dates, Payments & Instalments

Corporate-tax-filing
Corporate Tax /

The T2 Corporation Income Tax Return must be filed within six months after the end of each fiscal period. If your fiscal year-end falls on the last day of a month, file by the last day of the sixth month. Otherwise, file by the same day of the sixth month. Filing your return and paying

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When Is the Corporate Tax Filing Deadline in Canada?

time for taxes
Corporate Tax /

Canadian corporations must file their T2 Corporation Income Tax Return within 6 months after their tax year-end, pay their balance owing within 2 months (or 3 months for eligible CCPCs), and remit monthly or quarterly instalments throughout the year. Which “Deadline” Do You Mean? Filing vs Paying vs Instalments Corporate tax compliance involves three separate

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What is considered a small business in Canada?

A small business in Canada.
Business Finance /

A small business in Canada has 1–99 paid employees. Medium-sized businesses have 100–499 paid employees, and large businesses have 500+ paid employees. This employee-based definition is set out in Innovation, Science and Economic Development Canada’s Key Small Business Statistics report (ISED KSBS PDF). That answers the main question, but you will also see “small business”

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How to File Taxes as an Independent Contractor in Canada Using Form T2125

How to File Taxes as an Independent Contractor in Canada Using Form T2125
Business Tax /

Independent contractors in Canada report self-employment income on a T1 personal return using Form T2125 (Statement of Business or Professional Activities). You enter gross revenue, subtract eligible business expenses, and the result becomes your net self-employment income (or loss) for the year. A separate question is GST/HST: if you stop being a “small supplier,” you

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Canadian Small Business Corporate Income Tax Rates: What Your Corporation Actually Pays

Canadian Small Business
Corporate Tax /

Nobody warns you about the tax confusion when you incorporate. One moment you are celebrating the big move, corporation set up, business account open, official stamp on the certificate. Then someone asks what tax rate you pay and suddenly you are in three browser tabs, a Reddit thread from four years ago, and a CRA

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