Many owners view bookkeeping as a chore done only at tax time. But accurate, timely records are the foundation of good decisions, easier tax prep, and lower accounting fees.
Separate Business and Personal Finances
Open dedicated business bank account and credit card from day one. Commingling is the #1 source of bookkeeping problems and CRA audit red flags.
Record Transactions Weekly
Aim for a 30-minute weekly session rather than a 30-hour annual scramble. The longer you wait, the harder and more error-prone reconciliation becomes.
Monthly Reports to Review
- Profit & Loss: Revenue vs. expenses — are you profitable?
- Balance Sheet: Assets vs. liabilities — financial health snapshot
- Cash Flow Statement: Where cash is coming from and going to
- Accounts Receivable Aging: Who owes you money and for how long
💡 Digital Receipts: CRA accepts digital images of receipts. Use apps like Dext or HubDoc to capture receipts immediately. Under the Income Tax Act, you must keep records for a minimum of 6 years.
When to Hire Help
Consider outsourcing when you spend 5+ hours/week on bookkeeping, you're behind on GST/QST filings, or your year-end is consistently late. Professional bookkeeping ($300–$800/month) costs far less than one late-filing penalty.