Small business bookkeeping checklist: weekly, monthly and yearly

Good books are not built at tax time. They are the result of a short, repeatable routine run every week, tightened every month and closed out once a year. This checklist works for any small business — a clinic, a trades company, a restaurant, a nonprofit or an online store.

Weekly: keep the record current

Fifteen to thirty minutes a week is enough to stop small problems from compounding.

• Record or import every sale, invoice and payment received.
• Enter bills and expenses, and file the receipt or PDF with each one.
• Categorize new bank and credit-card transactions while you still remember them.
• Send invoices that are due and follow up on any that are overdue.
• Set aside the cash for sales tax (GST/HST) and payroll remittances as it comes in.

Monthly: reconcile and review

Once a month, prove that your books agree with the outside world — your bank, your card statements and your payment processor.

• Reconcile every bank and credit-card account to its statement.
• Match any payment-processor or point-of-sale deposits to the sales behind them.
• Review accounts receivable: who owes you, and how overdue are they?
• Review accounts payable: what do you owe, and when is it due?
• Confirm payroll and remittances were recorded and paid on time.
• Read a profit-and-loss statement for the month and compare it to the last few.
• Clear out uncategorized transactions and fix any obvious miscategorizations.

Quarterly: check the bigger picture

• File and pay sales tax (GST/HST) if you report quarterly.
• Review your profit margin and cash position against your plan.
• Set aside or top up an income-tax reserve so the annual bill is not a surprise.
• Confirm any loans, leases or subscriptions are recorded correctly.

Yearly: close the books and hand off

• Reconcile all accounts through the final day of the fiscal year.
• Confirm opening balances match last year's closing balances.
• Record depreciation, accruals, prepaid expenses and any owner adjustments.
• Reconcile payroll totals to your T4s and remittances.
• Count and value inventory if you carry it.
• Package clean statements and supporting documents for your accountant.

What "clean books" actually gets you

Beyond satisfying the CRA, a current set of books tells you whether you are actually making money, which customers pay late, where costs are creeping and how much tax to set aside. It also means you can answer a lender, a grant application or a potential buyer without a month of catch-up first.

Official references

• Canada Revenue Agency: Keeping records
• Canada Revenue Agency: Small businesses and self-employed income

This checklist is general educational information, not accounting or tax advice.

Frequently asked questions

How often should a small business do bookkeeping?

A short weekly session keeps records current, a monthly reconciliation proves the books agree with your bank and processors, and a yearly close prepares everything for your accountant. Doing a little each week is far less work than one large catch-up at tax time.

What is the difference between bookkeeping and accounting?

Bookkeeping is the ongoing recording and reconciling of transactions — the raw, accurate data. Accounting uses that data to prepare financial statements, file taxes and advise on decisions. Clean bookkeeping is what makes good accounting possible.

Do I still need an accountant if my bookkeeping is automated?

Usually yes. Automation keeps the day-to-day records reconciled and current, but year-end adjustments, tax filing and planning are still best handled by a professional. Good books simply make that work faster and cheaper.