Dec 31, 2025
A monthly QuickBooks Online (QBO) review keeps your books clean, your financials meaningful, and your corporation audit ready. Accurate financials depend on a consistent system: clean your books first, then review standardized reports, and finally analyze performance.
This checklist covers monthly workflows, quarterly deep dives, year end adjustments, corporate compliance considerations, and answers to the most common questions business owners ask about QBO.
1. Monthly Books Review: Clean First, Then Analyze
Your financial reports are only as accurate as the underlying bookkeeping. QBO makes it easier with bank feeds and smart features, but the accuracy still depends on disciplined review.
Reconciliations
Confirm that all bank accounts, credit cards, payment processors, and loans are fully reconciled. Reconciliation is the core control that ensures your financial transactions match real activity. If a reconciliation is missing or out of date, stop here.
Bank Register vs Statements
Verify the bank register matches your statements. Look for duplicates, unmatched bank feed items, and incorrect dates. Even with smart features, manual bookkeeping mistakes still occur.
Key Monthly Metrics
- Track income and expenses
- Monthly variance
- Expense percentage of revenue
- Top suppliers
- A/R aging
- A/P aging
- Gross margin
Profit and Loss Detail
Use this report as your accuracy check. It exposes miscoded entries and helps validate cash flow statements and revenue movement.
The Two Hats
- Hat 1: Is everything in order?
- Hat 2: How is my business doing?
Always validate accuracy before interpreting results.
2. Quarterly Deep Dives: Bigger Picture Financial Health
Quarterly reviews provide strategic insight that monthly snapshots cannot show.
Year to Date Trends
Assess revenue, margins, and operating expenses across the year. Identify patterns that impact cash flow statements and upcoming obligations.
Budget vs Actuals
Compare planned spending with real activity. This helps identify overspending early.
Tax Projections
Estimate corporate tax liability and revisit salary versus dividend strategy. This prevents surprises at T2 filing.
Owner Dashboards
Create dashboards in QBO that you can access through any web browser. Recommended widgets include:
- Gross margin
- Days sales outstanding
- Cash runway
- YTD net income
- GST or HST payable
- Shareholder loan balances
3. Year End Close: Preparing for T2 Filing and Compliance
Your year end checklist ensures your numbers align with CRA expectations.
Adjusting Entries
Record accruals, prepaids, deferred revenue, and corrections to prior errors.
Depreciation and CCA
Use the correct 2025 CCA limits:
- Passenger vehicles: Class 10.1 capped at $38,000
- Zero emission vehicles: Class 54 up to $61,000
- Equipment and computers: Class 8 and Class 50
Inventory Counts
Reconcile physical inventory with QBO and adjust discrepancies.
Section 85 Rollover Review
If you transferred assets during incorporation, confirm elected values, opening balances, and share consideration.
Dividends and Shareholder Loans
- Issue T5 slips by February 28.
- Loans over $10,000 without repayment terms may become taxable under Section 15(2).
4. Common QBO Errors Corporations Should Watch For
These errors appear often when owners rely too heavily on bank feeds and smart features without proper review.
Shareholder Loan Misclassification
Incorrect tracking may trigger taxable benefits or Section 15(2) inclusions.
Dividend Entry Errors
Incorrect postings distort retained earnings and cause T5 filing issues.
Payroll Filing Issues
Monitor CPP, EI, source deductions, and T4 accuracy.
Incorrect GST or HST ITCs
Capital assets require specific coding. Incorrect ITCs often come from misclassification.
Vehicle CCA Errors
CCA limits and class designations must be reviewed annually.
5. Scaling Reviews for Growth and Multi Entity Structures
As your corporation grows, your reporting must grow with it.
Multi Entity Reporting
Holdco and Opco structures require:
- Consolidated dashboards
- Intercompany loan tracking
- Proper reporting of intercompany dividends under Section 112
CPA support is recommended for consolidation.
Post Asset Transfer Audits
Review:
- Vehicle CCA limits
- Rollover documentation
- Updated depreciation schedules
- Opening balances
Advanced Reporting
Growing businesses benefit from:
- Department level profitability
- Project margins
- Forecasting models
- Rolling 12 month reports
Frequently Asked Questions
Is there a manual for QuickBooks Online?
There is no single comprehensive manual for QBO. Intuit provides help articles, video tutorials, and searchable guidance inside the platform. Since features vary by setup, the most reliable way to master QBO is by following structured workflows like the ones in this checklist.
Can I teach myself how to use QuickBooks?
Yes! You can learn daily tasks such as categorizing transactions, tracking income and expenses, sending invoices, and doing bank reconciliation. More complex areas such as shareholder loans, GST or HST, capital assets, payroll, and adjusting entries typically require CPA guidance. Many owners use a hybrid approach: self learning plus professional oversight.
What is one of the most common bookkeeping mistakes?
Reviewing performance before verifying that the books are accurate. Other common mistakes include:
- Missing reconciliations
- Incorrect categories
- Mixing personal and business expenses
- Mismanaged shareholder loans
- Missing depreciation
- Incorrect GST or HST ITCs
- Not issuing T5 slips
- Carrying retained earnings balances that do not reconcile
This happens often when owners rely on smart features without validating their data.
Bottom Line
A disciplined QBO workflow keeps your data clean, your reports accurate, and your corporation compliant. Monthly reviews protect accuracy, quarterly reviews support planning, and year end adjustments prepare your business for T2 filings. As your corporation grows, this checklist becomes even more valuable.
If you want reliable QBO books every month, Mesa CPA can build your reporting system, clean up your workflows, and help you understand your numbers with confidence.
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