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Your Monthly Bookkeeping Checklist - how to keep your books clean, CRA-compliant, and boardroom-ready
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We believe in keeping a simple monthly rhythm: a checklist that catches small issues before they snowball and gives you more confidence in your numbers. That’s why we put together a monthly bookkeeping checklist you can use right away.
1. Reconcile Accounts
- Compare bank + credit card statements to your books/ledger
- Investigate every unmatched transaction
- Document reasons for timing differences
- Watch out for: “Unreconciled” items carried over month to month
Pro-tip: Watch out for lump sum deposits or withdrawals (e-transfers, wires, etc.). You’ll want to break them down to match to individual invoices or expenses.
2. Reconcile Accounts
- Log all revenue sources (Shopify, invoices, Stripe, POS)
- Confirm deposits landed in the bank
- Flag income that’s booked but not yet received
- Watch out for: Sales in the books with no matching deposit
Pro-tip: Create a monthly “income checklist” by channel to avoid gaps.
3. Categorize Expenses
- No more “Miscellaneous.” Code every expense to the right category
- Attach or upload digital receipts
- Watch out for: Miscoding sales tax (GST/HST) as expenses. Sales taxes need to be isolated and coded separately (unless zero-rated or exempt)
Pro-tip: Categorize ‘Company-Wide Events’ separately because the CRA allows you to deduct 100% of the expense (if you meet certain criteria), unlike Meals/Entertainment, which are only 50% deductible.
4. Accounts Receivable (A/R)
- Run an aging report
- Contact clients with invoices past 30 days
- Watch out for: Invoices sitting past 60 days untouched
Pro-tip: Automate payment reminders in Xero/QBO. This saves admin time and makes collections consistent
5. Accounts Payable (A/P)
- List all bills due this month
- Schedule payments to align with cash inflow
- Review subscriptions and cancel unused ones
- Watch out for: Paying all bills early and draining cash flow
Pro-tip: Use vendor terms - pay on due date, not before.
6. Payroll
- Double-check employee hours, wages, and deductions
- Confirm benefits are applied correctly
- File CRA remittances by the deadline
- Watch out for: “Payroll is done” but remittances haven’t been filed
Pro-tip: Set recurring reminders for remittance deadlines to avoid penalties. Or ensure your online payroll app is configured correctly so it does it for you.
7. GST/HST & Compliance
- Reconcile GST/HST collected vs. paid
- Record input tax credits accurately since it can have a significant impact on cash flow
- Move tax funds into a separate account, if possible, to ensure you don’t spend them
- Watch out for: Spending GST/HST funds instead of setting it aside. Interest from the CRA can be notable!
Pro-tip: Treat it like it’s not your money, because it isn’t.
8. Review the Big Picture
- Run Profit & Loss and Balance Sheet statements frequently
- Compare actuals vs. budget or forecast
- Flag unusual variances for follow-up
- Watch out for: Shareholder loan balances (common CRA audit trigger)
Pro-tip: Keep commentary notes for major variances - future-you (or your board) will thank you.
9. Intercompany & Year-End Prep
- Reconcile balances between related companies
- Eliminate any duplicate or missing entries
- Review transactions for tax implications
- Watch out for: Waiting until year-end to clean up intercompany accounts out-of-balance
Pro-tip: Monthly reconciliations provide financial visibility for quick decisions and assist in closing your books quickly each month.
Strong books give you peace of mind, keep your company compliant, and build confidence with investors and leaders alike.
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