The Canadian small business bookkeeping checklist

Short answer: A complete bookkeeping checklist for a Canadian small business has six parts: set up properly (separate accounts, cloud software, a sensible chart of accounts), keep an ongoing habit (capture receipts, send invoices), do the monthly work (categorise, reconcile every account, track GST/HST, run payroll), handle sales tax and payroll on schedule, keep your records (the CRA’s general rule is six years), and prepare for year-end so your accountant gets clean books. Do these consistently and bookkeeping stops being a source of stress.

This is a practical, year-round reference. Use it as a standing checklist, bookmark it, or print it — and follow the links in each section for how to actually do each step.

General information for Canadian small businesses, not tax or legal advice. For tax rules specific to your situation, confirm with the CRA at Canada.ca.

How to use this checklist

Work top to bottom once when you set up, then treat the Ongoing and Monthly sections as recurring routines. If you’re behind on any of it, that’s normal and fixable — see what to do if your books are behind.

Assign the work before you start

For each task, agree who prepares it, who answers questions and who approves any filing or payment. In a very small business, the owner may fill several roles. A bookkeeper can maintain the records while your accountant reviews tax treatment and year-end adjustments. Outsourcing does not remove the need to supply documents or approve agreed actions.

Use this suggested workflow alongside the detailed checklist below. Choose dates that fit your statement availability and assigned filing schedules; these are bookkeeping routines, not statutory deadlines.

When	Suggested owner	Records needed	Completion check
At setup or when systems change	Owner with bookkeeper; accountant for tax settings	Account list, opening statements, software access and registration details	Accounts and responsibilities are documented; opening balances reviewed
Weekly: receipts and sales	Owner or administrator	Supplier receipts, invoices, sales records and credit notes	Documents captured; invoices sent; missing items listed
Monthly: transaction review	Bookkeeper or owner doing the books	Bank/card feeds, invoices, bills and receipts	Activity is recorded once; unclear entries appear on a question list
Monthly: reconciliation	Bookkeeper or owner doing the books	Statements for every bank, card and loan account	Reports agree to statements with outstanding items explained
Monthly: invoices and bills	Bookkeeper prepares; owner follows up or approves payment	Customer and supplier balances	Overdue invoices have an action; bills and credits are checked
Each assigned tax or payroll period	Agreed preparer; owner or authorized person approves	Reconciled tax/payroll records, account notices and confirmations	Required filing/payment is confirmed; unresolved differences remain visible
Monthly: management review	Owner with bookkeeper	Profit-and-loss, balance sheet and near-term cash commitments	Unusual movements and decisions are discussed
At fiscal year-end	Bookkeeper prepares; accountant reviews adjustments	Reconciliations, reports, asset/loan details and open questions	A dated handoff package and outstanding-items list are delivered

Keep a simple task list with period, owner, due date, status and evidence location. Use “waiting for receipt” or “needs accountant review” when a prerequisite is missing. An imported feed or prepared return is not evidence that reconciliation, filing or payment is finished.

For example, if a card reconciliation balances but three supplier receipts are missing, record both facts: “statement reconciled; three receipts awaiting review.” That prevents a completed balance check from hiding a documentation gap.

1. Set up your bookkeeping

• Open a dedicated business bank account (and ideally a business credit card). Keep personal and business money separate — see business vs personal expenses.
• Choose cloud accounting software — QuickBooks Online or Xero. See QuickBooks vs spreadsheet bookkeeping.
• Connect your bank and credit-card feeds so transactions import automatically.
• Set up a sensible chart of accounts that matches how your business actually works.
• Check GST/HST registration and its effective date. Most businesses use a $30,000 small-supplier test; calculation rules, exceptions and charging start dates matter. Use the CRA’s registration guidance and our GST/HST bookkeeping guide.
• If you have employees, set up payroll and your CRA payroll account.

2. Ongoing (weekly) habits

• Capture receipts as you go (photo/app), attached to the transaction. See receipts and business records.
• Send invoices promptly and record them.
• Keep business and personal spending separate — every time.

3. Monthly bookkeeping

This is the core routine. A fuller version is in the monthly bookkeeping checklist.

• Import and categorise every transaction; clear the “uncategorised” pile.
• Reconcile every bank account to its statement — see bank reconciliation explained.
• Reconcile every credit card to its statement — see credit card reconciliation.
• Reconcile loan accounts.
• Review accounts receivable (who owes you) and follow up.
• Review accounts payable (what you owe).
• Update GST/HST collected and paid, reconciled to the books.
• Record payroll and confirm remittances for their due dates.
• Review your reports — profit-and-loss, balance sheet, cash position. See are your financial statements useful?

4. GST/HST and payroll on schedule

• Confirm GST/HST filing and payment dates separately for your assigned reporting period. They can differ, particularly for some annual filers. See the CRA’s reporting requirements and deadlines.
• Confirm your payroll remitter type before scheduling source-deduction payments. Regular remitters generally pay by the 15th of the next month; other types have different schedules. See the CRA’s remittance rules and our payroll guide.
• Watch any provincial obligations that apply to you (e.g. PST/QST/RST, WorkSafeBC, Ontario EHT). Requirements vary by province — see the deadlines page.

5. Records to keep

• Keep income and expense records, bank and card statements, invoices, receipts, loan and payroll documents.
• Retain them for the CRA’s general six-year rule — details in how long to keep business records.
• Store securely, with readable backups, and check the CRA’s record location and retention requirements, including when using cloud tools.

6. Year-end preparation

• Reconcile every account through the year-end date and resolve discrepancies.
• Confirm receivables, payables, loans and fixed assets are accurate.
• Sort owner/shareholder transactions correctly.
• Produce a profit-and-loss, balance sheet and general ledger that tie out.
• Hand your accountant a clean package — see how to prepare your books for your accountant and the year-end bookkeeping checklist.

Common mistakes to avoid

• Relying on the bank feed and never formally reconciling.
• Mixing personal and business spending.
• Letting the books fall months behind.
• Missing GST/HST input tax credits because receipts weren’t kept.
• Missing a payroll remittance due date.
• Only looking at the numbers once a year.

When to get help

If this list feels like more than you can keep up with — or you’d rather spend the time running your business — that’s exactly the routine a bookkeeper runs for you. Avora provides monthly bookkeeping, reconciliations, GST/HST and payroll support, and brings behind books current through cleanup and catch-up.

Not sure where your books stand? Start with the free Bookkeeping Health Check — about three minutes, no email required — or talk to Avora.

If the routine is taking more time than expected, the DIY bookkeeping cost calculator helps estimate your time and software costs. It does not estimate Avora’s fees. To discuss who could take on the work, request a bookkeeping consultation.

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Reviewed October 16, 2026. Confirm the tax obligations, deadlines and recordkeeping requirements that apply to your business with the relevant authority or your accountant.