For Canadian nonprofits, year-end is more than just a date on the calendar. It is a key time to ensure financial accuracy. In addition, it helps you prepare for the annual audit. You must also file the T3010 Registered Charity Information Return with the CRA. Therefore, a clean and well-organized year-end process is the foundation of good governance and funder trust. However, rushing through this process can lead to errors, audit findings, and a loss of credibility.
According to the Chartered Professional Accountants of Canada (CPA Canada), a structured and disciplined year-end closing process is a hallmark of a financially healthy nonprofit. As a result, organizations that invest in a strong year-end process can produce accurate financial statements. They can share these statements with their board, funders, and the CRA. Ultimately, this helps build trust and confidence in how funds are managed.
To help with this, this guide provides a comprehensive checklist for Canadian nonprofits to follow during their year-end bookkeeping process.
The Ultimate Year-End Bookkeeping Checklist for Canadian Nonprofits
The 2026 Nonprofit Financial Checklist
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1. Bank and Credit Card Reconciliations
- Review all bank accounts: First, ensure that every transaction in your accounting system matches the corresponding entries on your bank statements. This is the first step in verifying the accuracy of your financial data.
- Reconcile all credit card accounts: Additionally, match each credit card charge to a receipt. Ensure you code each charge to the correct expense account.
2. Revenue and Accounts Receivable
- Record all revenue: Next, make sure you record all donations, grants, and earned income received before year-end are recorded. Use the correct period. This is critical for accurate revenue recognition.
- Review accounts receivable: At the same time, follow up on any outstanding pledges or invoices. Identify pledges that are unlikely to be collected and write them off if necessary.
3. Expenses and Accounts Payable
- Record all expenses: Similarly, ensure you record all bills for goods and services received before year-end in your accounting system. This follows the accrual principle, a key component of Canadian accounting standards for not-for-profit organizations.
- Review accounts payable: In addition, ensure all outstanding bills are accurate and scheduled for payment. This will give a clear picture of your short-term liabilities.
4. Restricted Funds and Net Assets
- Reconcile restricted funds: Ensure all restricted grants and donations are released as expenses are incurred. This is a common area for audit findings.
- Roll forward net assets: Ensure you correctly roll your surplus or deficit for the year into your net asset balance on the Statement of Financial Position and confirm that your opening balance matches the previous year’s financial statements.
5. Payroll and T4s
- Reconcile payroll: Ensure your payroll records match the amounts you paid to employees and remitted to the CRA.
- Prepare T4S: Issue T4 slips to all employees. File your T4 summary with the CRA by the deadline. This is usually the last day of February.
6. Preparation for Audit and T3010
- Prepare a year-end financial statement package: Include your Statement of Financial Position, Statement of Operations, and Statement of Cash Flows. The CRA requires that you keep all financial records.
- Gather all documents your auditor needs: This includes bank statements, grant agreements, major contracts, investment statements, and board minutes. The CRA requires you to keep all financial records for six years.
Year-end bookkeeping is a complex and time-consuming process for many Canadian nonprofits. However, Enkel specializes in year-end bookkeeping and audit preparation. As a result, we handle the entire process for you. Ultimately, this ensures your books are clean, accurate, and compliant.
Start your new fiscal year with confidence and a clean set of books. Contact Enkel today for a consultation on our year-end bookkeeping services.
