Updated Checked by the Tax-Services.ca editorial team How we check
Before you move to newer accounting software, check three things: that it can file the returns you owe, that it keeps your records readable for six years, and that its payroll figures match an independent check. Features come after that. For a corporation, the first one is not optional, because T2 returns for tax years starting after 2023 have to be filed electronically.
What should accounting software do for Canadian compliance?
Start with the legal floor. The CRA says corporations preparing a T2 must use CRA-certified software. The return can go in through the Corporation Internet Filing service, My Business Account, or Represent a Client if an accountant files for you. A few corporations are exempt, including insurance, non-resident and tax-exempt ones.
So ask any vendor one plain question: is your product on the CRA certified list for the return I file? Get the answer in writing. A sales page isn’t proof.
We can’t tell you which product is best. Prices, feature lists and rankings change, and we couldn’t confirm any of them from official sources. What we can do is tell you what to test.
What to test before you commit
| Question | Why it matters | Quick test |
|---|---|---|
| Can I export every year? | Records are kept six years from the end of the last tax year they relate to | Export last year and open it without the software |
| Who holds the data? | You stay responsible for records even when a third party keeps them | Ask where the files sit and how you get them back |
| Does payroll match? | Wrong deductions mean wrong remittances | Run one employee and compare |
| Can my accountant log in? | Filing often goes through Represent a Client | Invite them during the trial |
| What happens if I cancel? | Your records must outlive the subscription | Read the exit terms |
How do you check the payroll maths?
Run a trial payroll and compare it with a figure you didn’t get from the software. Suppose you pay one Ontario employee $3,000 every two weeks. The payroll remittance calculator gives $961.03 per pay period to send the CRA. That’s $732.62 held back from the employee and $228.41 as your own share.
If your new software shows something far from that, find out why before you use it. Small gaps can come from rounding or from settings like the pay date. Big gaps mean a wrong province, a wrong pay frequency or an old rate table.
The payroll deductions calculator splits the employee side into tax, CPP and EI if you need to find where a difference starts. Our tools are estimates. They are a cross-check, not a replacement for the CRA’s own payroll tools.
Why bother? Because a late remittance is expensive. With five employees on that same pay, the remittance is $4,805.16 a period. The CRA page lists a 10% penalty once you’re eight days late or more on amounts over $500, which would be $480.52 on a single missed period.
Where do software switches go wrong?
Usually at the edges. Opening balances don’t match the old closing balances. Someone deletes the old system the day the new one goes live. Nobody checks the first month against a bank statement.
Run both systems side by side for a month. Reconcile the bank accounts in both. If they agree, you can retire the old one, but keep an export, because the CRA expects the records behind your returns to be there for six years.
Automation has limits too. Software applies a rule without asking whether the rule fits, so if you’re unsure how a transaction should be treated, ask your accountant once, then set the rule.
When you review your cash after the switch, the budget calculator gives a simple monthly view, which is useful for a sole owner who pays themselves from the business.
Where the numbers come from
Filing rules, the certified-software requirement and the six-year records rule come from Canada Revenue Agency pages, read in September 2026. Remittance penalty rates come from the CRA page on when to remit source deductions. Dollar figures for payroll come from the calculators on this site, using 2026 data for Ontario.
Frequently asked questions
Does my accounting software have to be CRA-certified?
If you prepare a T2 return with tax software, the CRA says you must use CRA-certified software. Ask the vendor or check the CRA list.
How long must I keep records after switching software?
Six years from the end of the last tax year they relate to. Export your data before you cancel anything.
Can my accountant file through my software?
Often the accountant files through Represent a Client. Invite them during the trial to confirm the setup works.
Which accounting software is best?
We couldn't confirm product rankings, prices or features from official sources, so we don't name a winner. Test the points in the table with your own data.
How can I check payroll figures in new software?
Run one employee and compare the result with an independent estimate, such as a payroll remittance calculator, then look into any large gap.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.