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
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
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
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.
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
Track Income and Expenses
Maintain detailed records of:
✔ Sales and revenue
✔ Operating expenses (rent, utilities, supplies)
✔ Payroll and contractor payments
✔ Taxes and government remittances
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
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.
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
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.
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