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Hi
We are a small corporation with no employees (incorporated Aug, 2013/ year end 31 Dec). We had an accountant doing our taxes for the past two years. Some of our expense and balance sheet accounts from the FY13/FY14 are not correctly stated. The net impact on income/loss is minimal, if at all. I am handling our own accounts this year and I am very keen on having everything correct irrespective of the extent of final impact. Is there any way to reconcile prior year accounts without actually having them reassessed?
Do I need to inform CRA? Is there a form for that? We intend on hiring an tax-accountant again only after reaching a certain size for our business.
Thanks in advance.
If you adjust the prior year's financial statements, then you are supposed to file an amended tax return for that year, even if the impact is small. To avoid the hassle, consider posting the adjustment in the current period so that you don't have to re-file last year's taxes again.