This guide covers the Accountly steps to take before you file a sole proprietor return or send records to an accountant. For the tax rules themselves, start with our T2125 guide.
Import the records you already have
Upload receipt and invoice images or PDFs in batches of up to 25. Accountly extracts the merchant, date, amount, and sales tax for review. You can also add a transaction manually when there is no document.
Extraction is a starting point, not a substitute for review. Check each amount and category against the original document before relying on the totals.
Review income and expense categories
Confirm that every client payment and platform payout is recorded once. Then review expenses by category and separate any personal portion of mixed-use costs such as phone, internet, home office, and vehicle expenses.
The CRA’s Form T2125 is the source of truth for the income and expense lines used on a sole proprietor return.
Check GST/HST separately
If you are registered, compare the GST/HST collected on sales with the tax recorded on eligible business purchases. The report is a bookkeeping summary. Your actual filing obligation depends on your registration status, reporting period, place-of-supply rules, and available input tax credits. Review the CRA’s GST/HST guidance before filing.
Resolve exceptions before year end
Look for missing documents, duplicate entries, uncategorized transactions, and unusual amounts. Add notes while the transaction is still familiar. If a receipt is missing, keep other available evidence and ask your accountant what support is appropriate.
Share the finished records
Use accountant access to invite your accountant to the workspace, or export the available reports for your tax software. Accountly organizes the records and T2125 totals, but it does not file the return or decide whether a deduction is allowed.
The broader year-end checklist covers deadlines, instalments, and documents outside Accountly.
Start the 30-day trial to import your records. No credit card is required.
The information in this guide is for general informational purposes only and is not intended as accounting, tax, business, or legal advice. Accountly does not provide professional services or act as your accountant, tax advisor, or lawyer. No client relationship is created by your use of this material. Always seek advice from qualified professionals who understand your particular circumstances before acting on any information contained herein.