Mar 19, 2025
Bookkeeping isn’t the most exciting part of running a business. However, neglecting it can lead to costly bookkeeping errors, cash flow surprises, and last-minute scrambling—especially when tax season arrives.
The good news? Proper bookkeeping doesn’t have to be overwhelming or time-consuming.
By dedicating just a little time each month to timely bookkeeping, you can avoid business transactions being overlooked, missed tax deadlines, and inaccurate records. This will help you make informed decisions, maintain financial clarity, and ensure compliance with tax regulations.
This simple yet effective monthly bookkeeping checklist will help Canadian small-business owners stay organized, minimize stress, and maintain an accurate picture of their financial situation—all year round.
💡 Pro Tip: If you don’t use cloud-based accounting software like QuickBooks Online (QBO), you can still track your bookkeeping records by reviewing financial documents such as bank statements, sales invoices, and receipts manually.
Your Monthly Bookkeeping Checklist
1. Reconcile Bank and Credit Card Statements
✅ Why It Matters:
- Detects human errors, duplicate charges, and fraudulent transactions early
- Ensures all financial transactions are recorded accurately, preventing cash flow surprises
- Helps avoid late fees and ensures you aren’t missing business bank deposits
✅ Action Steps:
- Compare the amount in your bank to the amount in QuickBooks (or your bookkeeping software of choice)
- Investigate any discrepancies and flag potential bookkeeping errors
- Verify outstanding checks and deposits in transit to ensure an accurate bookkeeping process
- Ensure all transactions have been properly categorized in your chart of accounts to reflect your financial activities
📌 Regular review of accounts protects your business from financial surprises and fraud!
2. Categorize and Record All Transactions
✅ Why It Matters:
- Ensures accurate tracking of expenses and business operations
- Simplifies tax records and compliance with tax regulations
- Maintains well-organized bookkeeping records for audits
✅ Action Steps:
- If your bookkeeping software is connected to your business bank account, transactions should already be imported. Simply review and categorize them.
- If not, manually record transactions into your bookkeeping system.
- Assign the correct categories for business expenses and income to ensure accurate bookkeeping reports.
- Attach digital records of receipts to corresponding transactions for compliance and audit purposes.
- Utilize double-entry accounting or single-entry bookkeeping to maintain accurate financial accounts.
📌 Well-organized records make tax time stress-free!
3. Review Accounts Receivable (A/R)
✅ Why It Matters:
- Ensures timely collection of unpaid invoices and improves cash flow
- Minimizes financial obligations related to overdue payments
✅ Action Steps:
- Generate an A/R Aging Report in QuickBooks:
- Go to Reports > search for Accounts Receivable Aging Summary
- This report provides valuable insights into which invoices are overdue
- Follow Up on Overdue Invoices:
- Navigate to Sales > Invoices, filter by overdue status, and send payment reminders
- Improve Internal Controls:
- Before extending trade credit, review customer credit ratings and verify source documents
- Offer Payment Plans or Early Payment Discounts:
- Adjust invoice terms in Settings > Sales > Discounts for qualifying clients
📌 Monitoring A/R reduces cash flow issues and ensures financing activities run smoothly!
4. Review Accounts Payable (A/P)
✅ Why It Matters:
- Helps avoid late fees and penalties by paying bills on time
- Keeps vendor relationships strong and supports financial operations
✅ Action Steps:
1️⃣ Generate an A/P Aging Report Weekly:
- In QBO, go to Reports > Search for "Accounts Payable Aging Summary"
- Review outstanding bills and prioritize overdue payments
2️⃣ Prioritize Overdue Payments:- Navigate to Expenses > Bills to see unpaid bills
- Sort by due date and address overdue invoices first
3️⃣ Schedule Payments in QBO:- Use Bill Pay or manually schedule payments
- Go to + New > Pay Bills and select the bills to be paid
4️⃣ Leverage Early Payment Discounts:- Identify vendors offering early payment discounts in the Vendor List
- Plan payments strategically to take advantage of savings
📌 An effective bookkeeping process ensures predictable cash flow and happy vendors!
5. Process Payroll and Remittances
✅ Why It Matters:
- Ensures employees and contractors are paid accurately and on time
- Keeps your business compliant with CRA payroll tax requirements
✅ Action Steps:
- Verify hours worked and calculate payroll (or ensure timesheets are approved if using payroll solutions like QuickBooks Time)
- Deduct and remit payroll taxes to the CRA on time
- Issue pay stubs and update payroll records for compliance
- Submit payroll remittances electronically via CRA My Business Account or third-party services
💡 Using WagePoint? Payroll calculations, tax remittances, and direct deposits are handled automatically—saving you time and reducing errors.
📌 Payroll accuracy is crucial for maintaining financial clarity!
6. Review Financial Statements
✅ Why It Matters:
- Provides a clear snapshot of your business’s financial health
- Helps with budgeting, forecasting, and strategic decision-making
✅ Action Steps:
-
- Generate and review these key reports: Profit & Loss Statement
- Balance Sheet
- Cash Flow Statement
- Favorite these reports for quick access in QuickBooks:
- Go to Reports, search for each report, and click the ⭐ (star) icon to add them to Favorites.
- Audit your financial statements for discrepancies and ensure transparency.
7. Plan for Tax Obligations
✅ Why It Matters:
- Prevents last-minute scrambling during tax season
- Helps you budget for upcoming tax payments and quarterly installments
✅ Action Steps:
- Set aside money for GST/HST, corporate taxes, and payroll taxes
- Review upcoming CRA deadlines to avoid penalties
- Maximize deductions and tax credits by consulting an accounting professional
📌 Proactive tax planning saves money and prevents stress!
💡 Fun Fact: You Can Avoid All of the Above! If handling bookkeeping tasks feels like a daunting task, a professional bookkeeper can manage everything for you—from reconciliation and record transactions to compliance with tax regulations.
📌 Curious about how bookkeeping services can help? Check out our blog on what bookkeeping services include.
By following this bookkeeping template, you’ll stay on top of your bookkeeping practices, avoid costly mistakes, and keep your business financial operations running smoothly all year round. 🚀
