Managing your finances as a small business owner can feel like juggling flaming swords—especially when bookkeeping is thrown into the mix. But it doesn’t have to be overwhelming. With a reliable bookkeeping checklist for small business, you can stay organized, avoid tax-time stress, and make smarter money decisions.
Whether you’re a sole proprietor or running a growing team, having a systemized approach to your financial records keeps you in control. Here’s a streamlined checklist to help you keep your books in tip-top shape throughout the year.
We offer a comprehensive range of Tax Accountant services in Coquitlam and across other regions of British Columbia.
Weekly Bookkeeping Tasks
Start small and build momentum. Keeping up with weekly tasks means fewer headaches later.
- Record All Transactions: Log every sale, expense, and refund. Don’t wait until month-end—stay current.
- Organize Receipts: Keep digital copies of all receipts in categories like meal
- s, travel, and office supplies.
- Invoice Clients: Send invoices promptly and follow up on any that are overdue.
- Reconcile Bank Transactions: Match transactions in your accounting software with your bank statement.
- Review Cash Flow: Understand how much money is coming in and going out to avoid surprises.
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Monthly Bookkeeping Tasks
Once a month, take a closer look at your financial health.
- Review and Categorize Expenses: Ensure all expenses are correctly categorized for tax purposes.
- Generate Financial Statements: Prepare or review your income statement and balance sheet.
- Reconcile Credit Card Statements: Just like your bank account, keep tabs on all card transactions.
- Set Aside Money for Taxes: Estimate what you owe and set funds aside monthly—your future self will thank you.
- Check Payroll Records: Ensure all payroll payments and deductions are correct.
Recommended article: Top Bookkeeping Mistakes Small Businesses
Quarterly Bookkeeping Tasks
Quarterly check-ins are a chance to zoom out and assess the bigger picture.
- Review Profit & Loss Trends: Compare your current performance with past quarters to identify growth or concerns.
- Remit Sales Tax: If you’re registered for GST/HST, this is the time to file and pay.
- Meet with Your Accountant: Touch base to discuss your financial standing and plan for tax strategies.
- Adjust Budgets: Tweak your business budget based on recent trends and upcoming needs.
We also recommend you read this article: accounting and bookkeeping Tips for small business
Annual Bookkeeping Tasks
Year-end tasks help you prepare for tax filing and evaluate your overall business performance.
- Close the Books: Finalize income and expenses for the year and lock your records.
- Prepare for Tax Filing: Organize T4s, expense summaries, and any other required documents.
- Review Asset and Depreciation Records: Keep your fixed asset register up to date.
- Evaluate Financial Goals: Reflect on what went well financially and what needs improvement.
- Archive Financial Documents: Store records securely for the CRA’s required retention period (typically six years).
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Bonus Tips for Bookkeeping Success
- Use Accounting Software: Tools like QuickBooks or Xero make life much easier.
- Keep Personal and Business Finances Separate: Always use a dedicated business account and card.
- Stay Consistent: Set aside a regular time each week or month to manage your books.
- Consider Outsourcing: If bookkeeping takes too much time or feels overwhelming, hire a professional.
Following a consistent small business bookkeeping checklist not only keeps your records clean—it empowers you to make informed, strategic decisions.
At Maxpro Financials, we help Canadian businesses simplify their bookkeeping with tailored services and expert support. Whether you’re starting fresh or need to clean up messy books, we’ve got your back.
Our other tax services:
- Personal Tax Return Coquitlam
- Business Tax Return Coquitlam
- Online Payroll Services Coquitlam
- WCB Employer Registration Coquitlam
- Record of Employment Service
FAQ
Q1: Why is bookkeeping important for small businesses?
A1: Bookkeeping helps you track income and expenses, remain tax-compliant, and make informed financial decisions.
Q2: How often should I do bookkeeping?
A2: Weekly updates are ideal to keep things manageable. Monthly and quarterly reviews provide deeper insights.
Q3: Can I do bookkeeping myself?
A3: Yes, especially with tools like QuickBooks. But as your business grows, outsourcing may save time and prevent errors.
Q4: What documents should I keep for bookkeeping?
A4: Invoices, receipts, bank and credit card statements, payroll records, and tax documents.
Q5: How long should I keep financial records in Canada?
A5: The CRA recommends keeping records for at least six years after the end of the tax year.
Q6: What happens if I fall behind on bookkeeping?
A6: It can lead to inaccurate financials, tax penalties, and poor decision-making. Catch up as soon as possible or seek professional help.