As part of regular operations, businesses (corporation, partnership, etc) have to file taxes with Canada Revenue. Usually this is done by an accountant, who at the same time generates the annual Financial Statements for the business. For a small business the Financial Statements are typically 5-6 pages in length, and include the following components:
- Notice to Reader – a letter stating the name of the accountant and the terms under which they are working to prepare the financial statements
- Balance Sheet
- Statement of Income and Retained Earnings
- Notes or explanations for unusual items in the balance sheet or income statement