When the owner and the company share a bank account
Shareholder loans, mixed expenses, and a T2 that waits until the books are labelled.
The company paid the household. Nobody wrote it down.
Owner-managed corporations in BC usually have a working business and a shareholder loan that grew all year. The T2 cannot close until that is named.
The shareholder loan
Draws, personal cards, and transfers that were never labelled. We split what is a loan, what is salary, and what is a dividend before the T2 is due.
Truck, phone, home office
Company money paid for mixed use. We document the split so GST and the T2 match how the year actually ran.
GST and payroll filed. T2 left for later.
Remittances went out. The year-end file did not. We put GST, payroll, and the T2 on one calendar so year-end is a close.
Label the money. Then file the T2.
The loan account first. Then GST, payroll, and the T2. Then a draw the company can pay.
01
Split personal from company
Shareholder loan, mixed expenses, and what still has to be documented this year.
02
Close GST, payroll, and the T2
The remittances you already file, plus a compilation when you need Notice to Reader statements.
03
Set a draw you can pay
Salary or dividends that match the cash in the company, not last year's leftover loan.
Bring the bank statements and the loan account.
Fifteen minutes is enough to see whether the shareholder loan is the problem.