DIY Corporate Tax Filing vs Hiring a Corporate Tax Accountant

Your tax return may be one form. The decisions behind it are not.

Behind that T2 are choices about timing, deductions, and how you pay yourself. Those choices affect both your current tax bill and next year’s planning, so filing corporate taxes involves more than knowing how to use tax software.

For many Ontario business owners, that raises a practical question: should they file the corporate return themselves or hire an accountant?

DIY filing may suit some owners when the books are clean, transactions are straightforward, and they have the knowledge to complete a T2. Once the return becomes more complex, however, the extra time involved and the risk of filing errors make professional corporate tax support worth considering.

The better fit depends on what each route means for your filing obligations, time, tax knowledge, costs, filing risk, business complexity, and access to professional support:

• Filing requirements your corporation must meet
• Time and effort each route demands
• Tax knowledge needed for schedules, deductions, and credits
• Costs associated with each option
• Risk of errors when filing with the CRA
• Business complexity that can shift the decision
• Professional support and when hiring an accountant may justify the added cost

What Does DIY Corporate Tax Filing Involve?

DIY corporate tax filing means preparing the T2 Corporation Income Tax Return and required schedules, then filing with the Canada Revenue Agency (CRA).

When you file it yourself, you remain responsible for the return’s accuracy. The return itself also keeps the corporation’s income separate from income reported on your personal T1 return.

The requirement to file a T2 generally applies to corporations resident in Canada for each tax year, even when they are inactive or owe no tax. Exceptions include registered charities, tax-exempt Crown corporations, and Hutterite colonies.

For corporations filing in Ontario, the T2 also includes Ontario corporate income tax calculations.

Prepare the books and schedules

Start with up-to-date financial statements, reconciled bank accounts, and complete shareholder loan records. Next, identify which schedules apply based on your transactions, ownership, and financial information. The schedules below are common examples, not a complete checklist:

• Schedules 100 and 125 report balance sheet and income statement figures using the General Index of Financial Information (GIFI). Schedule 141 identifies who prepared or reported on the financial statements, their level of involvement, any reservations expressed, and whether notes to the financial statements were prepared.
• Schedule 1 reconciles accounting net income or loss with net income or loss for tax purposes.
• Schedule 8 calculates capital cost allowance (CCA), recapture, and terminal losses for depreciable assets.
• Schedule 50 applies to a private corporation when a shareholder holds 10% or more of its common and/or preferred shares.
• If the corporation paid or received dividends, Schedule 3 may also apply.

File electronically and track payment dates

Most corporations must file the T2 electronically for tax years beginning after 2023, subject to the CRA’s specified exceptions. If a corporation is required to file electronically but does not, it may face a $1,000 penalty.

To file electronically, choose CRA-certified T2 software that supports your tax year and required schedules. You can then file using the corporation’s business number, tax year end, and Web Access Code.

Filing and paying are separate obligations with different deadlines. Corporations file within six months of year end, but the remaining tax balance is generally due two months after the end of the tax year. Certain Canadian controlled private corporations (CCPCs) may qualify for a three month balance due day if they meet the CRA’s conditions.

Before that balance due day, some corporations may also have to make instalment payments during the year. Instalments are generally monthly, while eligible small CCPCs may pay quarterly. However, for most corporate taxes, instalments are not required when applicable tax payable is $3,000 or less in either the current or previous tax year.

That threshold does not remove the requirement to pay any remaining tax by the balance due day. Review the CRA’s instalment conditions and exceptions before deciding that no instalments are due.

Check the assessment and retain records

After filing, save the CRA’s confirmation number. It confirms that the return was accepted for processing, not that the CRA has completed its assessment.

Once the notice of assessment arrives, compare it with the filed return and confirm that payments were credited correctly. If you identify an error or omission in an assessed return, follow the CRA’s T2 reassessment process rather than resubmitting the return through Corporation Internet Filing.

You also need to keep your books, invoices, receipts, contracts, bank statements, payroll records, and other documents that support the amounts reported. The CRA generally requires you to keep these records for six years from the end of the last tax year they relate to.

For a late income tax return, the six year period starts from the filing date. Certain records related to property, a liquidation or wind-up, or the corporation’s share register may need to be kept indefinitely.

These filing, follow-up, and recordkeeping steps remain part of handling the T2 yourself. If you hire an accountant, they can handle the preparation and follow-up tasks included in your engagement.

What Does a Corporate Tax Accountant Handle?

A corporate tax accountant uses the corporation’s financial records to prepare and file its T2, complete the applicable schedules, and review deductions and credits the corporation may claim.

Depending on the engagement, the accountant may also help with tax planning and CRA correspondence. Even when an accountant or other representative is involved, the corporation remains legally responsible for its tax affairs.

At Robertson CPA Professional Corp, Ryan Robertson oversees the corporate tax work. His accounting background dates to 2013, with a focus on corporate returns and compilation engagements for small and medium businesses.

For corporate clients, that work can include:

• T2 preparation and filing
• Review of eligible deductions, credits, CCA claims, and expense classifications
• Planning for equipment purchases, compensation, dividends, and reinvestment
• Support with HST filings, payroll remittances, instalments, and CRA deadlines
• Help with CRA notices, audits, and tax disputes
• Accounting and bookkeeping for transactions, financial statements, and supporting records
• Assistance with subsidiaries, international entities, and other complex structures

If Robertson prepares and electronically files the T2, an authorized signing officer must complete and sign Form T183CORP before he transmits the return. The amounts on the form must match the electronically filed return.

Robertson retains the signed original, while the corporation keeps a copy for at least six years. The form is not sent to the CRA unless requested.

Form T183CORP covers the electronic filing itself. If Robertson needs access to the corporation’s CRA information or will communicate with the CRA on its behalf, the corporation must provide separate representative authorization at the appropriate access level.

What Filing Problems can Occur With Weak Records and Missed Deadlines?

Weak records and missed deadlines can increase the corporation’s tax bill and create extra work after filing. Those issues can lead to:

• Failing to claim eligible deductions can leave the corporation paying more tax than necessary.
• Unsupported expense claims may be reduced or denied if the CRA reviews the return.
• Incorrect figures can require a reassessment, which may increase or decrease the amount owing.
• A late T2 can trigger a late filing penalty, while unpaid tax can continue to accrue interest.
• Correcting a filed return can create additional work and may lead to professional fees if you need outside help.

That late-filing penalty is generally 5% of unpaid tax owing at the filing deadline, plus 1% for each complete month late, up to 12 months. The CRA may apply larger or additional penalties in certain cases. Interest on unpaid tax is separate, so filing an overdue return does not stop interest from accruing on the remaining balance.

DIY Filing vs Corporate Tax Accountant: What Should Businesses Consider?

The choice comes down to 6 practical differences. Cost, time, and risk look different under each filing option, so the table below compares them side by side for an Ontario corporation deciding how to handle its corporate taxes this year.

Factor	DIY corporate tax filing	Hiring a corporate tax accountant
Time required	You handle bookkeeping cleanup, research, preparation, and submission.	You provide records, answer questions, and review the return while the accountant handles the agreed preparation work.
Tax knowledge	You need to understand the schedules, GIFI codes, and CCA rules relevant to your return.	The accountant applies those rules to your corporation’s transactions.
Cost	Corporation Internet Filing is free, so compare the certified software price, any paid support, and the value of your preparation time.	Compare the quoted fee and included services; any tax savings depend on items such as CCA timing and the salary-dividend mix.
Accuracy risk	You review the figures and resolve software warnings before filing.	Professional review can identify errors, but complete records and compliance with filing rules still matter.
Deduction review	You identify eligible claims and gather the supporting records.	The accountant reviews applicable deductions, credits, CCA claims, and compensation decisions.
CRA correspondence	You answer notices, reviews, and reassessments yourself.	Robertson offers help with notices, reviews, and tax disputes.

For professional preparation, Robertson provides a quote before work begins. If you already manage day to day bookkeeping, discuss keeping that work in-house while engaging Robertson for T2 preparation and filing, subject to the agreed scope.

Confirm which records you will supply and whether the quote includes bookkeeping cleanup, other filings, tax planning, and later CRA correspondence.

This lets you compare the fee with both the DIY costs and the work you would still handle yourself.

How Tax Filing Choices Can Affect a Business Owner’s Time

Your filing choice determines how much preparation work stays with you. Owners who file on their own manage the full process; owners who delegate still need time to supply information and review the result. To estimate your own workload, consider 5 tasks:

1. Gather the financial statements and supporting records you will use or provide to the accountant.
2. Explain transactions the records alone may not clarify, such as business purchases paid personally.
3. Prepare and check the return yourself, or respond to the accountant’s questions during preparation.
4. Review the completed return and arrange signing by an authorized officer before the accountant submits it.
5. Track payment dates and CRA correspondence yourself, or confirm who handles each task under the engagement.

These tasks still need space in the workday alongside quoting, hiring, and selling. A defined scope makes the time commitment easier to plan.

5 Factors That Affect the Difficulty of Filing Corporate Taxes Yourself

The difficulty of filing corporate taxes yourself depends more on how your business operates than on how long you have owned it. Most of that complexity comes down to 5 factors:

1. Business structure can add reporting requirements when related or associated corporations are involved, including disclosures such as Schedule 9.
2. Revenue sources require closer classification when operating revenue sits alongside rental or investment income, since their tax treatment can differ.
3. Incomplete financial records make opening balances, prior claims, and shareholder loan transactions harder to establish correctly.
4. Tax deductions require judgment when distinguishing current expenses from capital purchases or separating business and personal use.
5. Transaction volume and material events increase the work required. Inventory creates valuation questions, while selling capital property, paying or receiving dividends, or changing share ownership can add calculations and schedules.

4 Situations Where Professional Tax Support May Be More Useful

Certain situations make the decision much clearer because the cost of a filing mistake can outweigh the cost of professional advice. The four situations below show when unfamiliar requirements, missing records, or new obligations may justify professional support.

Situation	Why professional support may help
Your first T2 after incorporation	Opening balances, the tax year-end, and initial shareholder transactions need to be established correctly. The first tax year can end on any date the corporation picks, as long as it runs no longer than 53 weeks. The first return also requires opening balance sheet information on Schedule 101.
Several years behind on filing	Each year’s records and return need attention. Filing penalties may apply, while interest can continue until unpaid tax is paid. Coming forward through the CRA’s Voluntary Disclosures Program before the CRA raises the issue can qualify for full penalty relief and 75% interest relief.
A CRA notice, review, or audit	Responses need supporting documents and attention to the deadline in the correspondence. A notice of objection to a disputed assessment is due within 90 days of the notice’s date. Robertson’s problem-resolution services can help address the issue.
Growth into payroll, GST/HST, or subsidiaries	Payroll and GST/HST add separate reporting obligations, such as T4 slips due by the end of February and mandatory GST/HST registration once taxable sales pass $30,000 in a calendar quarter or across four consecutive quarters. Meanwhile, a new Canadian-resident subsidiary generally needs its own T2.

Explore Professional Corporate Tax Services & Simplify Your Business Tax Filing!

DIY filing can work for a small corporation with clean books and straightforward deadlines. As payroll obligations, instalments, or multiple revenue streams add to the workload, it can become harder to keep every filing and payment on track.

For Ontario corporations balancing T2 filing with year round compliance, Robertson CPA Professional Corp offers tax preparation, planning, compliance monitoring, and help with CRA correspondence, with Ryan Robertson overseeing the work.

Book a consultation before your corporation’s next year end to review filing obligations, payment dates, and planning options while there is still time to act.

Bring your latest financial statements, previous T2, and any CRA correspondence so you can discuss the work required.

Frequently Asked Questions (FAQs)

Q1. Can I file my corporation’s T2 myself?
Yes, you can prepare and file your corporation’s T2. For tax years beginning after 2023, corporations generally must file electronically unless an exception applies. Before you submit, make sure the books are closed, the required schedules are complete, and your T2 software supports the return.

Q2. Should I hire an accountant for my corporate tax return?
It depends on your corporation’s activity, how organized its records are, and how much time you can spend on the return. An owner with clean books, straightforward transactions, and the necessary tax knowledge may handle a routine T2. Payroll, instalments, or multiple revenue streams add work and may make professional help worthwhile.

Q3. When should I hire a corporate tax accountant?
Consider hiring one for your first T2, overdue returns, a CRA review, or a change in corporate structure. These situations can involve unfamiliar requirements or tax decisions. For planning advice, speak to an accountant before year end; for a CRA notice, use the response deadline in the letter.

Q4. When is my corporation’s T2 due?
The T2 is due six months after the corporation’s tax year end, so a December 31 year end is filed by June 30. Any balance owing comes due earlier, generally two months after year end, or three months for an eligible CCPC.