The solution is simple: start in September. Think of it as your pre-season training camp for taxes. By giving yourself a three-month runway, you create room to make deliberate decisions, take advantage of deductions while they’re still available, and forecast your tax liability with accuracy. Starting now allows you to smooth cash flow, spread out obligations, and enter Q4 with clarity and confidence. Instead of scrambling in December, you’ll be executing a plan and that’s the difference between surviving year-end and finishing strong.
Section 1: Why September is a Turning Point for Business Owners
1. End of Summer Reset
September signals more than just the change of seasons it’s a psychological reset for many business owners. The slower pace of summer is behind you, the kids are back in school, and both employees and clients are back in “business mode.” Think of September as the Monday of the business year for Ontario small businesses whether you run a contracting company, a retail shop, or a growing eCommerce business this is the perfect time to refocus.
From an accounting and tax perspective, this reset is critical. By September, you already have eight months of financial data in hand. That means your books are rich with information that can be analyzed, projected, and used to make smart tax decisions. Waiting until December leaves little time to act, but in September you have the luxury of stepping back, reviewing trends, and creating a proactive plan.
2. Three Months to Act
September gives you a full quarter before year-end and three months can make all the difference. Many tax-saving strategies require lead time:
Adjusting your salary vs. dividend mix takes payroll planning.
Making capital purchases (equipment, vehicles, or technology) requires ordering, delivery, and setup before you can claim depreciation.
Optimizing RRSP contributions and other retirement strategies often depends on income projections that can’t be rushed in the last week of December.
By starting in September, you give yourself a wide enough window to adjust course, instead of being stuck with what’s already happened. This is especially true for incorporated businesses, where decisions made now can impact both your corporate tax return and your personal tax liability.
3. Cash Flow Check-In
For many small and medium-sized businesses in Canada, September is when the cracks in cash flow become visible. The summer months often bring slower sales, vacation schedules, and higher personal spending, while September brings new operating expenses, payroll demands, and CRA installments. This “September squeeze” can leave business owners feeling stretched thin.
That’s why September is the ideal time to run a cash flow forecast. A CPA can help you project what your tax liability will look like in December and April, align your revenue and expense patterns, and identify areas where you can smooth out the bumps. Even simple adjustments like deferring certain expenses, renegotiating supplier terms, or structuring your owner’s compensation differently can make a big difference.
Think of September as your financial checkpoint: if you adjust now, you’ll have a strong Q4 and an easier year-end. If you ignore it, you’ll likely face surprises when CRA deadlines and holiday expenses collide in December.
Section 2: CRA Deadlines That Sneak Up on You
One of the biggest dangers of waiting until December is that many critical CRA deadlines have already passed. These aren’t optional they’re mandatory filings and remittances, and missing them can cost you far more than the tax itself in the form of penalties and interest. September is one of the busiest compliance months of the year, and overlooking these obligations can set your business back significantly.
1. Payroll Source Deductions
If you have employees or even if you’re paying yourself a salary through your corporation you’re required to remit payroll source deductions (income tax, CPP, and EI) to the CRA. These are usually due monthly, though some small businesses qualify for quarterly remittances.
The penalties for late payroll remittances are steep:
10% penalty on the first late payment.
20% penalty if you’re late again within the same calendar year.
That means a $5,000 late remittance could cost you an extra $1,000 or more in penalties. Worse, the CRA views repeated payroll errors as a sign of poor compliance, increasing your chances of being flagged for an audit.
September Action: Review your payroll records now to make sure your remittances are up to date. If you’re behind, work with a CPA to get caught up before CRA notices.
2. GST/HST Filings
Many Canadian small businesses especially those with quarterly reporting obligations will find that September is a filing deadline for GST/HST. For example, if your reporting period runs from July to September, you’ll need to file and remit by the end of October, but September is when you should already be preparing your records.
Missing an HST filing not only triggers interest charges but also blocks you from claiming Input Tax Credits (ITCs) the mechanism that allows you to recover the HST you paid on business expenses. That means you’re not only facing penalties but also leaving money on the table.
September Action: Double-check that your bookkeeping is current. If your July and August expenses and sales aren’t reconciled yet, September is the time to catch up so you can file on time and claim every credit you’re entitled to.
3. Corporate and Personal Installment Payments
Another big September trap is installment payments. Both corporations and individuals are required to make quarterly installments if their tax owing is more than $3,000 in the current or previous year. One of those installments is due in September.
Corporations must pay based on either the current-year estimate or prior-year taxes.
Individuals (such as sole proprietors or those with rental income) must also keep up with September installments to avoid interest charges.
Missing installments may not sound like a big deal, but CRA interest compounds daily. Even worse, these amounts aren’t deductible as a business expense meaning every dollar you pay in penalties is pure waste.
September Action: Review your tax installment schedule now. If your income has fluctuated, a CPA can adjust your installments to reflect your actual liability, ensuring you don’t overpay or underpay.Section 3: Tax Strategies That Only Work If You Start in September
One of the biggest advantages of planning in September is that you still have time to act. Many of the most effective tax strategies require foresight, paperwork, and cash flow adjustments that can’t be done in a rush at year-end. Here are four strategies that only work if you give yourself enough lead time.
1. Salary vs. Dividends Optimization
For incorporated business owners, one of the most important tax decisions is how to pay yourself. September is the sweet spot to make adjustments because you still have enough months left in the year to balance payroll, tax installments, and contributions.
Salary: Builds RRSP contribution room, allows CPP contributions, and can be deducted as a business expense. It’s also helpful if you want to qualify for loans or mortgages, as lenders often prefer T4 income.
Dividends: Generally taxed at lower personal rates in the short term, offer more flexibility with timing, and don’t require CPP contributions (saving you cash).
The Mix: For most owner-managers, the optimal solution is a blend of both. For example, you might pay yourself enough salary to maximize RRSP contributions and contribute to CPP, with the rest taken as dividends for tax efficiency.
Why September Matters: Waiting until December gives you no room to balance the two. By adjusting in September, you can still structure your pay to achieve the best mix of tax savings and retirement benefits.
2. Capital Purchases & Expense Acceleration
If your business needs new equipment, vehicles, software, or technology, fall is the time to buy. These purchases qualify for depreciation (Capital Cost Allowance or CCA), which allows you to write off a portion of the cost this year.
Buying in September ensures that the asset is delivered, set up, and in use before December 31, which is a requirement for claiming CCA.
Waiting until December often backfires delivery delays, supply chain slowdowns, and installation issues can mean you don’t actually get to claim the deduction until the following year.
Other deductible expenses (like marketing campaigns, training courses, or prepaid services) can also be strategically accelerated into the current year to reduce taxable income.
Why September Matters: You need time to research, order, and implement purchases. Acting in the fall ensures your deductions count in this tax year.
3. RRSP & Retirement Planning
RRSP contributions are one of the most powerful ways to reduce personal taxes while saving for retirement but the mistake many business owners make is waiting until February’s “RRSP season” rush.
By projecting your income in September, you’ll know:
How much contribution room do you actually have?
Whether you should maximize your RRSP this year or save room for future high-income years.
How your RRSP contributions align with corporate compensation decisions (salary vs. dividends).
Instead of panicking in February, you’ll have a clear plan that integrates both personal and corporate tax strategies.
Why September Matters: You need accurate year-end income projections to decide on RRSP amounts. Leaving it too late risks over-contributing or missing out on deductions.
4. Owner–Manager Compensation & Bonuses
Many Canadian business owners like to pay themselves a year-end bonus either for cash flow reasons or as part of tax planning. But cramming bonuses into December payroll can cause big problems:
Cash flow strain during a month that already has high expenses.
Payroll compliance issues if remittances aren’t made on time.
Lost opportunities to spread the tax burden across months.
By deciding in September, you can schedule bonuses for October or November, smoothing out the cash flow impact and ensuring all payroll deductions are remitted on time.
Why September Matters: Bonuses require payroll planning and remittance deadlines things you can’t fix after December 31.
Section 4: The Cost of Waiting Until December
It’s tempting to treat December as “tax season.” Many business owners push planning to the very end of the year, assuming they can fix everything with a flurry of last-minute moves. But the truth is, waiting until December comes at a real cost in lost opportunities, increased stress, and higher taxes. Here’s what’s at stake if you delay.1. Fewer Options By December, most of the strategies that actually save money are no longer available. Why? Because many deductions and credits require time to execute:Capital purchases must be delivered and in use before year-end. Ordering in December often means delivery slips into January.Salary/dividend adjustments can’t be applied retroactively if you’ve already paid yourself the “wrong” way for most of the year.RRSP planning depends on accurate income projections, which you can’t do in a December rush.When you delay, you aren’t making tax planning decisions you’re simply recording what already happened, even if it wasn’t tax-efficient.2. Cash Flow Strain December is already one of the most expensive months of the year for businesses. You may be juggling:Holiday bonuses for staff.Inventory purchases for Q1.Year-end supplier payments.Personal holiday expenses.Adding big lump-sum tax installments or rushed deductions into the mix often creates unnecessary cash flow strain. Instead of spreading obligations over the fall months, you’re stuck draining liquidity at the worst possible time and sometimes borrowing just to meet deadlines
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3. Higher Risk of Errors When you rush, mistakes happen. Rushed bookkeeping in December often leads to:Misclassified expenses (personal costs coded as business, or deductible items missed entirely).Payroll compliance errors, such as missed remittances.Incomplete documentation, which raises red flags in the event of a CRA audit.Errors don’t just mean more stress they can also result in penalties, interest, or even a reassessment down the road. The CRA is increasingly using data analytics to detect inconsistencies, and rushed year-end filings are an easy target.4. Lost Tax Savings Every missed deadline or deduction directly increases your effective tax rate. For example:Missing a GST/HST filing deadline not only triggers penalties but also delays your ability to claim Input Tax Credits.Failing to adjust your salary/dividend mix could mean thousands in extra personal taxes or lost RRSP contribution room.Not planning bonuses ahead of time could result in higher payroll costs or unnecessary CPP over-contributions.In other words, procrastination isn’t neutral it costs money. Even small oversights add, and the more you leave to December, the more tax you’ll likely pay.
Section 5: Why September Tax Planning Pays Off
Tax planning is most powerful when it’s done early. September offers the perfect balance of visibility and flexibility you already have eight months of financial data, but you still have three to four months to make meaningful adjustments before December 31. Here’s why getting ahead of the curve pays dividends (literally and figuratively).
1. Strategic Forecasting
The biggest advantage of starting in September is clarity. By this point in the year, your CPA can prepare accurate year-end projections based on actual numbers, not guesses.
You’ll know what your corporate tax liability is likely to be, instead of waiting until filing season in April to get an unpleasant surprise.
You can anticipate personal taxes tied to your salary and dividends, and structure your compensation accordingly.
Forecasting also highlights whether you’re on track with CRA installments, so you can avoid interest charges.
In other words, you stop “flying blind” and start planning with numbers that matter.
2. Proactive Adjustments
Once you see where you stand, you still have time to take action. This is where September becomes a game-changer:
Shift income: Adjust your salary/dividend mix for the remainder of the year to optimize tax brackets and RRSP contribution room.
Manage expenses: Accelerate deductible purchases (equipment, vehicles, marketing) to reduce current-year taxable income.
Leverage retirement tools: Contribute to RRSPs, Individual Pension Plans (IPPs), or other savings vehicles while still aligning with cash flow.
Plan bonuses: Schedule owner-manager or employee bonuses before year-end to balance corporate and personal tax.
These moves require planning, paperwork, and cash flow alignment things you can’t pull off effectively in December.
3. Peace of Mind
Perhaps the most underrated benefit of September planning is psychological. Many of our small business clients in London, Ontario tell us the biggest benefit of September planning isn’t just tax savings it’s the confidence to enter Q4 knowing exactly where they stand with the CRA.
You know your tax position.
You’ve smoothed out your cash flow.
You can focus on business growth and finishing the year strong, rather than worrying about CRA deadlines.
Stress-free owners make better decisions, and better decisions lead to stronger businesses.
Section 6: How a CPA Can Help in September
Even if you understand the importance of planning early, putting it into practice isn’t always simple. Tax planning involves forecasting, compliance, and strategic decision-making and most business owners are too busy running their companies to dig into the numbers themselves. That’s where working with a CPA makes all the difference.
At Bhundhoo Tax Professional Corporation, we guide Canadian business owners through a structured September planning process that takes the guesswork out of taxes and turns it into actionable strategy. Here’s how we help:
1. Forecast Corporate and Personal Tax Liability
No more surprises. We prepare year-end projections based on your current books, expected income, and expenses. You’ll see clearly:
What your corporate taxes are likely to be.
How much you’ll owe personally, depending on salary, dividends, or bonuses.
Whether you’re ahead or behind on CRA installments.
Instead of finding out in April what you owe, you’ll know today and have time to act.
2. Plan Optimal Salary/Dividend Splits
Compensation planning isn’t just about getting paid, it’s about balancing tax efficiency with long-term benefits. We’ll:
Determine the right salary to maximize RRSP contribution room and CPP credits.
Blend in dividends for flexibility and lower immediate tax.
Align compensation with your broader goals, whether that’s retirement savings, reinvestment, or qualifying for financing.
This is one of the most powerful strategies owner-managers can use but it only works if it’s planned before year-end.
3. Review GST/HST and Payroll Compliance
September is a hotspot for CRA compliance deadlines. We’ll review your filings and remittances to ensure:
Payroll source deductions are up to date.
GST/HST filings are accurate and complete.
No penalties or interest charges are lurking in the background.
This keeps your business audit-ready and eliminates the risk of costly mistakes.
4. Identify Deductions You Can Still Act On
Many tax-saving opportunities are still available in September, but you need to know where to look. We help you:
Spot deductible expenses you can accelerate (equipment, marketing, etc.).
Time purchases and payments to reduce this year’s tax burden.
Maximize legitimate claims without raising audit red flags.
It’s not about spending more, it’s about spending strategically.
5. Provide Fractional CFO Services for Deeper Strategy
For businesses looking beyond just compliance, we offer Fractional CFO services — giving you the financial leadership of a CFO without the full-time cost. This includes:
Cash flow forecasting and scenario planning.
Growth and financing strategies.Integrating tax planning into your overall business model.
This is especially valuable for eCommerce businesses, startups, and growing companies that need high-level guidance to scale sustainably.
September is Tax Planning Season
If you wait until December, you’ll run out of time and options. But if you start now, you can save on taxes, avoid CRA penalties, and give your business the cash flow flexibility it needs to finish the year strong.“Don’t wait until the year-end crunch. If you’re a small business owner in London, Ontario, book your September tax planning session withBhundhoo Tax Professional Corporation, CPAtoday. Let’s make your 2025 tax-efficient, stress-free, and profitable.”
