Spring Cleaning Your Business Finances: 5 Key Areas Canadian Owners Should Review

As a Canadian business owner, the post-tax season lull in May offers more than just a chance to breathe — it’s also a smart time to reset, refocus, and revisit the inner workings of your finances. Just like a good spring clean brings clarity to your physical space, a financial refresh can bring structure, savings, and peace of mind to your business operations.  

Let’s explore five strategic areas worth reviewing this season with your financial team: 

1. Owner Compensation: Is It Still the Right Mix? 

How you pay yourself — and potentially other family members — can have a significant impact on both your personal taxes and your business’s retained earnings. Whether you’re drawing a salary, taking dividends, or using a mix of both, it’s worth checking in: 

• Are your compensation levels tax-efficient given 2025 income thresholds? 
• Has anything changed with your family income situation? 
• Are you planning to contribute to an RRSP (Registered Retirement Savings Plan) or Individual Pension Plan (IPP)? 

A quick recalibration now can improve year-end outcomes and avoid costly missteps.  

2. Cash Flow Forecasting: Adjust for What’s Changed 

What looked like a solid forecast in January might need adjusting by May. Shifts in customer demand, input costs, labour expenses, or interest rates can all change the math. A spring refresh of your cash flow projection can help: 

• Identify potential shortfalls early 
• Inform spending or hiring decisions 
• Ensure you’re staying ahead of lending covenants or growth milestones 

This is also a good time to consider whether surplus cash could be deployed more productively.  

3. Tax Planning: Use the Off-Season Wisely 

Now that filing deadlines are behind you, it's easy to forget about taxes — but forward-thinking business owners know this is exactly when to plan for next year. Ask your CPA: 

• Are there tax-saving strategies we didn’t use this year but should explore next? 
• Should we accelerate or defer income or expenses based on this year’s forecast? 
• Are there corporate investments, donations, or capital purchases worth timing for tax benefit? 

When it comes to taxes, proactive always beats reactive.  

4. Internal Controls: Tighten the Back Office 

Spring is a good time to review how money flows within your business — not just on paper, but in practice. As your company grows or changes, so does your exposure to risk. Consider reviewing: 

• Signing authorities and approval processes 
• Access controls for financial systems 
• Frequency and scope of account reconciliations 
• Vendor and expense policy compliance 

Even minor gaps can lead to costly errors, especially if roles have shifted or remote work has changed workflows.  

5. Tech and Subscription Audit: Stop Leaks Before They Add Up 

Over time, many businesses accumulate financial tools, software licenses, and SaaS (Software as a Service) subscriptions that no longer align with current needs. This spring, take inventory of: 

• Accounting and bookkeeping tools 
• Payroll or HR platforms 
• Reporting dashboards or analytics tools 
• Duplicate services across departments or teams 

Eliminating overlap or upgrading underperforming tools can help you reduce waste and improve efficiency.  

Give Your Finances a Fresh Start 

Spring cleaning isn’t just for closets — it’s for your balance sheet, your budget, and your business strategy, too. With a focused review, you can reduce friction, uncover hidden value, and better position yourself for the rest of the year. If you’d like to explore any of these ideas in more detail, reach out to your advisor. We’re here to help you bring clarity and control to your business finances — season after season.