Fiscal year-end dates for contractors and businesses are determined by their structure and application date. For most self-employed workers, the fiscal year-end date is December 31st. Businesses, on the other hand, can choose their initial fiscal year-end date. The date chosen must be within a year of their incorporation date.
Generally, the fiscal year-end date will remain the same year after year for both self-employed workers and businesses. However, there is a way to change your fiscal year-end.
Changing a Fiscal Year End Date in Canada
For a business to change its fiscal year-end date in Canada, they have to write a letter to the tax services office asking for approval. In this letter, they will need to explain the reasons for the change. If they do not include details and reasons for requesting the change, the CRA will likely delay or decline the request.
For a self-employed individual to change their year-end date, it works a bit differently. To change their fiscal year-end date, they must contact the CRA directly. They will also be required to fill out Form T139. The CRA does not approve every request.
Get Professional Assistance
The optimal way to change a fiscal year-end date is to seek professional assistance from a CPA. Changing a fiscal year-end date requires good organizational skills and bookkeeping skills. This process can be confusing to those doing it for the first time. Changing the fiscal-year end date will also impact GST reporting dates.
At NaickerCPA, we can simplify the process by working with you and providing professional guidance. We are an all-encompassing CPA team that can assist with tax filings, bookkeeping, consulting, and much more. Contact us today for professional CPA assistance.
If you have any questions about this article or business taxes, in general, or you want to make an appointment with an accounting professional at Naicker & Associates, please contact us at (604) 469-9369. We are based in Port Moody, BC.
