A simple monthly bookkeeping routine for your small business

1. Give every transaction a home

Choose one place to collect receipts, supplier invoices, sales records and statements. Organize them by month, and use file names that help you find a document again. Record the business purpose while it is still fresh in your mind.

The CRA expects records to be complete, reliable and supported by documents. Electronic records also need to remain readable and accessible, with proper backups. Keep the underlying records available when changing software or bookkeepers.

2. Make a short weekly check-in

Set aside a regular time to record recent activity, send outstanding invoices and follow up on missing paperwork. Use consistent categories, and check entries before accepting software suggestions. Keep a short questions list for anything you cannot confidently classify.

3. Reconcile at month-end

Compare your bookkeeping records with each bank and credit-card statement. Investigate differences such as missing charges, duplicate entries or payments that have not cleared. A matching bank balance is useful only when the transactions behind it are also correct.

4. Review money still coming in and going out

Look at unpaid customer invoices and upcoming supplier bills together. Decide which invoices need a reminder and which payments are due next. This gives your monthly review a practical purpose: understanding what cash is expected and what commitments are approaching.

5. Prepare for tax work throughout the year

Keep tax notices, filing confirmations and supporting records organized alongside your books. Bring questions about GST/HST, payroll or unusual transactions to your tax professional early. Your filing obligations depend on your circumstances; a regular review helps identify what needs attention.