Tax season is only brutal when you leave the work for tax season. The April scramble - digging through a year of bank statements, hunting for receipts you can’t find, guessing at what you owe - is the cost of not tracking as you go.
Do a little each week and filing becomes a copy-paste. Here’s the workflow.
Log income and expenses when they happen
Every client payment, platform payout, and cash job is income on your T2125. Every business cost is a potential deduction. The trick is catching both in the moment, not reconstructing them in April.
Snap a photo of a receipt when you pay. Log the e-transfer when it lands. Five seconds each, and your year is already built by the time you file.
Keep receipts in CRA categories
A pile of receipts isn’t records - it’s homework you’ve deferred. What the CRA wants is each expense sorted into a category: vehicle, supplies, home office, professional fees, and so on.
Sort as you capture, and your T2125 category totals stay current. Leave it until April, and you’re rebuilding a year from memory.
Know your two dates
File by June 15. Pay anything you owe by April 30 - interest starts the day after, no matter when you file. If you’ve set aside 25-30% of your income along the way, the payment is already covered.
Hand your accountant clean numbers
If you work with an accountant, what they charge for is largely the cleanup. Give them sorted totals instead of a shoebox and you cut their hours - and your bill. Better still, give them direct access to the same numbers so there’s no email-attachment ping-pong.
Let Accountly do the tracking
Accountly can extract receipt details, keep recorded income in one place, and organize T2125 totals on web and mobile. Review the extracted amounts and categories against the source documents before filing.
FAQ
When are self-employed taxes due in Canada? You file by June 15, but any balance owing is due April 30. Interest accrues on unpaid tax from May 1 regardless of your filing date.
What records do I need to keep for the CRA? Receipts and records for all business income and expenses, kept for six years. Digital copies are accepted, so a scanned receipt is as valid as the paper one.
Do I need an accountant to file self-employed taxes? No. Many self-employed Canadians file their own T2125. An accountant helps most when your situation gets complex - incorporation, multiple income streams, or GST/HST.
How far ahead should I start preparing? You shouldn’t “start” at all - track year-round. If you’re behind, give yourself a few weekends before the April 30 payment date to rebuild from bank and card statements.
Official CRA references
Check the CRA’s Form T2125 and business expense guidance against your tax year and circumstances.
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.