December is a whirlwind — holidays, deadlines and a to-do list that never ends. But it’s also the perfect time to tackle year-end tax planning and set yourself up for savings this tax season. A little prep now can help you maximize deductions, manage cash flow and make strategic financial decisions that could save you money down the road.
Here’s how you can make the most of these last few weeks of the year.
Start by making sure your financials are accurate and up-to-date. Gather receipts, invoices and expense records, and get them in order. Good organization is key to making informed decisions and avoiding surprises come tax season.
This might sound counterintuitive, but deferring a loan payment could give you some breathing room during the holidays. Car payments and mortgages will be big ones; just ask your lender what they can do for you.
Many lenders allow a one-month pause on principal payments, often called programs like TD Bank's “Payment Pause” or RBC's “Skip-A-Payment.” The missed interest is added to your loan principal, so weigh the pros and cons.
If your medical expenses for the year exceed $2,759 (or 3% of your income, whichever is less), you can claim the difference as a deduction. Now’s the time to stock up:
Remember to keep all receipts and documentation handy — they’re critical at tax time. Here's a list of 17 critical documents to keep safe for tax time.)
Got unused funds in your HSA? Most expire on December 31, so make those appointments and purchases now. From massages to new orthotics, use it before you lose it!
Consider selling investments before year-end to optimize your tax position. For instance:
This area can be complex, so it's a good idea to consult a tax professional for expert guidance.
Giving back feels good — and it’s tax-smart too!
Not sure where to start? Check out our blog post on Donating Responsibly for tips.
If you’re a small business owner, you have flexibility in how you compensate yourself or your staff. Paying a bonus or dividend before year-end can sometimes save you money, depending on your income this year versus next year.
If you’re cutting a cheque to a family member, be mindful of the Tax on Split Income (TOSI) rules. For a more detailed discussion on this topic, please refer to our blog on Income Sprinkling.
For businesses with a December 31 year-end, now’s the time to maximize your write-offs. Think about equipment, technology or other big purchases that could qualify as deductions this year.
The end of the year is also the perfect time to think ahead. Set financial goals, create a budget and strategize for your business’s growth in the coming year.
Year-end tax planning can feel overwhelming, but you don’t have to do it alone. Our team of CPAs is here to help small business owners like you navigate changing tax laws and maximize your savings. Whether it’s bookkeeping, GST filing, or strategic tax services, we’re ready to help.
📍 Serving Okotoks, Calgary, and beyond — contact us today to get started.
Want more tips? Explore our blogs on Corporate Tax and Personal Tax topics for more helpful advice tailored to small business owners.
Are you on the hunt for a more proactive small business accountant? That’s us.