Starting a business comes with numerous financial responsibilities. Proper accounting practices ensure compliance, streamline operations, and set your company up for long-term success. This Start-Up Accounting Checklist covers everything you need to know to manage your finances effectively.
We offer a comprehensive range of Tax Accountant services in Coquitlam and across other regions of British Columbia.
Our other tax services:
- Personal Tax Return Coquitlam
- Business Tax Return Coquitlam
- Online Payroll Services Coquitlam
- WCB Employer Registration Coquitlam
- Record of Employment Service
Start-Up and Business Accounting Checklist
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Register Your Business and Obtain Necessary Licenses
Before managing your finances, ensure your business is legally registered. Depending on your business structure (sole proprietorship, partnership, or corporation), you may need:
- A Business Number (BN) from the CRA
- GST/HST registration (if applicable)
- Provincial and municipal business licenses
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Open a Business Bank Account
Separate business and personal finances to simplify bookkeeping and tax filing. Choose a bank that offers business-friendly services such as low transaction fees, online banking, and integration with accounting software.
Recommended article: Choosing an accountant for your business in Canada
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Choose an Accounting Method
Decide between:
- Cash accounting (record transactions when money is received or spent)
- Accrual accounting (record transactions when they occur, regardless of cash flow)
Accrual accounting is generally preferred for businesses with complex financial transactions.
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Set Up an Accounting System
Invest in accounting software to track income, expenses, and taxes efficiently. Popular choices include:
- QuickBooks
- Xero
- Wave Accounting
- FreshBooks
Consider hiring an accountant or bookkeeper for professional assistance.
We suggest you also read this article: How to File Personal Tax Returns in Canada
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Track Income and Expenses
Maintain detailed records of:
✔ Sales and revenue
✔ Operating expenses (rent, utilities, supplies)
✔ Payroll and contractor payments
✔ Taxes and government remittances
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Create a Budget and Financial Forecast
Plan for short-term and long-term financial needs by setting a budget. A financial forecast helps anticipate future revenue, expenses, and potential cash flow issues.
Recommended article: Choosing a financial advisor in Canada
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Set Up Payroll and Employee Benefits
If you hire employees, register for a Payroll Program (RP) with the CRA and automate payroll processing. Consider offering benefits like health insurance or retirement savings plans.
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Understand Tax Obligations
Stay compliant with tax requirements, including:
- Corporate income tax
- GST/HST (if applicable)
- Payroll deductions (CPP, EI, and income tax)
We suggest you also read this article: Business Valuation Guide
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Prepare for Financial Reporting and Audits
Regularly generate financial statements, such as:
✔ Profit & Loss Statement
✔ Balance Sheet
✔ Cash Flow Statement
Keep accurate records in case of an audit.
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Plan for Business Growth
As your business expands, consider scaling your accounting processes, hiring financial professionals, and investing in tax-saving strategies.
Recommended article: How to Choose the Best Bookkeeping Service for Your Canadian Business
Final Thoughts
Managing your finances effectively from the start ensures your business remains profitable and compliant. Use this Start-Up Accounting Checklist to build a solid foundation and avoid costly mistakes.
Our other financial services:
- Financial Service BC
- Business Valuation Services BC
- Business Plan Writing Services BC
- Financial Planning Services
- Financial Due Diligence Services