How Heightly Works: Canadian Self-Employed Tax Prep in Minutes

Tax prep for Canadian self-employed shouldn't take a week

Most sole proprietors we talk to spend two full weekends sorting bank statements, categorizing expenses in spreadsheets, and second-guessing which line of the T2125 each transaction belongs to. Here's how Heightly turns a year of statements into an organized tax-preparation report in minutes.

Here's the complete workflow for a Canadian self-employed filer — from uploading a year of bank statements to exporting a Tax Prep Report aligned with T2125 categories you can hand to your accountant.

From statements to report

The full customer journey:

• Upload bank and credit card statements for the tax year — monthly PDFs or a single annual statement, whichever your bank exports
• Add off-bank entries like cash purchases, home office rent, and capital assets via a simple template
• AI-assisted categorization into suggested T2125 categories, with unclear or unusual transactions flagged for your review (Advertising, Meals & Entertainment, Office Expenses, Vehicle, Home Office, and more)
• Review and adjust any category Heightly gets wrong — one click reassigns
• Export the report as a categorized summary plus a full transaction ledger, formatted for your accountant or ready to enter into your own tax software

Who Heightly is built for

Heightly works best for Canadian sole proprietors and self-employed individuals filing a T1 return with a T2125 attached. Common fits include:

• Freelancers and consultants
• Real estate agents
• Trades contractors
• Coaches, tutors, and creators
• Rideshare and delivery drivers
• Small service businesses without full bookkeeping software

If you're already using QuickBooks or a bookkeeper, Heightly can still speed up year-end prep by categorizing the transactions your bookkeeper didn't touch.

What the Tax Prep Report includes

The exported report groups every transaction into the T2125 categories the CRA expects to see:

• Revenue and other business income
• Cost of goods sold (if applicable)
• Business expenses (broken out by T2125 line: 8521 Advertising, 8523 Meals, 8760 Business Taxes & Licenses, 8810 Office Expenses, 8811 Office Stationery, 8860 Professional Fees, 9060 Salaries & Wages, 9200 Travel, 9270 Delivery & Freight, and more)
• Home office details and annual expenses, with your business-use percentage calculated for your accountant to apply
• Capital cost allowance (CCA) candidates flagged for review

You also get a full transaction ledger with dates, descriptions, amounts, and the T2125 line each transaction was assigned to — useful supporting transaction detail if the CRA or your accountant asks questions.

How Heightly handles GST/HST

Heightly estimates the GST/HST embedded in each transaction based on its assigned T2125 category and your province's tax rate, then calculates the recoverable input tax credit (ITC). For registrants, this makes ITC reconciliation dramatically faster. Non-registrants can ignore the GST/HST columns entirely.

Ready to try it?

You can upload your first bank statement free and see Heightly categorize it in real time — no payment required for the preview. When you're ready for the full year, view current Canadian pricing.

Try Heightly free →