Bookkeeping Tips from Accountant for Small Business
Whether you're launching a new small business corporation in Canada or running a growing operation, accurate bookkeeping is essential for long-term success. Clean, organized financial records make tax filing easier and support smart business decisions. At Taxccount Canada, we offer expert bookkeeping and tax accounting services tailored for small businesses across Canada. Below, we share practical tips to help you stay audit-ready, compliant, and financially strong.
Why This Matters
- Streamline reconciliation and GST/HST tracking
- Protects your personal assets in the event of a lawsuit or claims against your business for debt or taxes
- Reduces CRA audit red flags
Pro Tip: Scan or digitize company bank statements each month so they are on hand during CRA review.
Select the Appropriate Accounting Software
Small business owners love cloud-based accounting platforms like QuickBooks Online, Xero, and Wave. These are great time savers for data entry and streamline payroll as well as invoicing and CRA filings.
What to Consider in a Bookkeeping System:
- Taxing Act CRA-compliant GST/HST and payroll deduction features
- Live bank feeds and auto-categorisation of transactions
- Multiple users with your accountant or bookkeeper
At Taxccount Canada we work with our clients to properly set up software and integrate it with their financial activities to avoid manual errors and ensure timely reporting. When choosing software, the price tag alone is never a good reason to buy something.
Keep Track of Everything Small or Large
Any coffee meeting, equipment purchase or fuel receipt is potentially a deductible expense. Credit oversight could mean missed tax breaks. Just make sure you are recording everything and sorting it properly under business expenses.
That’s the only way for me to know if I can help you – Ana Holt, CPA, CA Some typical expenses our clients claim: Deductible Expenses For Canadian Corporations (Graphics) Types of expenses (or deductions) in this graphic (and those that are outlined in this post):
Common Deductible Expenses for Canadian Corporations:
- Office rent and utilities
- Software subscriptions
- Travel and Trip expenses for business and vehicles
- Payroll, wages and subs
- Marketing and advertising
- Snap receipts on the move with mobile apps
- Dext or Hubdoc and automatically reconcile them to your bookkeeping system.
Keep up with your GST/HST filings
If your small business earns more than $30K per year, you need to register for a GST/HST number and file returns periodically. Late or omitted filings could also mean interest or penalties from the CRA.
What You Should Do:
- Recording GST/HST which was received and paid on each transaction
- Schedule calendar reminders of quarterly or annual filing due dates.
- Monthly Reconciliation of GST/HST Accounts
- Confused about complex HST filings?
Our tax accountants can make sure your returns are mistake-free and comply with recent laws.
Reconcile your bank and credit card statements monthly to ensure all invoices and transactions match accurately
Reconciliation is matching your records of what’s in your bank account with what your bank says is in your account. Do this at least once a month to detect discrepancies, unaccounted for expenses or duplicate entries.
Benefits:
- Supports in detection of fraud or bank mistakes
- Maintains information on cash flow in order to provide an accurate cash flow report
- Ensures your business is prepared for an audit
- We provide monthly reconciliation service as monthly-account-recon- we give you reading time.
Set Up a Payroll System Early
For a business with employees or contractors, a full payroll system that manages wages, deductions and T4/T5 slips is essential. Payroll CRA compliance – there’s no room for error in compliance with the CRA, and mistakes can come with substantial penalties.
A Payroll System Should:
- Determine CPP, EI and income tax correctly
- Remit CRA deductions in a timely manner
- Create pay stubs and summary report_periods ago.
We will work with our business clients to establish payroll services that are scaleable and seamlessly integrated with your bookkeeping system.
Create Monthly Financial Reports
Your income statement, balance sheet, and cash flow statement are not just documents for tax season they are tools for business growth. Review them monthly to track performance, project costs, and make better investment choices.
Critical Questions Your Reports Must Address:
- Did I earn more this month than last month?
- Where can I reduce costs?
- Can I afford to hire, or to expand, given my cash flow?
Our accountants assist in interpreting these reports, so you can make decisions with confidence.
Understand Your Deadlines and Tax Return Requirements
If you are a Canadian-controlled private corporation, the deadline for filing your T2 corporate tax return in Canada is six months after your tax year ends. It is important to remember important dates, so that you don’t get charged with penalties and interest.
Key Filing Deadlines:
- T2 (Corporate) Due 6 months after year-end
- GST/HST Filing Period: Monthly,
- Quarterly, Annually
- Deductions at Source: 15th of the following month
- T4s, T5s: End of February
Hire a trusted tax accountant to monitor your tax calendar to keep up with deadlines—and avoid penalties.
Partner with a Professional Bookkeeper/Accountant If you can afford an accountancy then do so
Only so much of your bookkeeping can be do-it-yourself. A good small-business accountant will not only keep books clean but also locate tax-saving opportunities, establish financial controls, and chart a course for growth.
Our Services in Taxcount Canada Include:
- Bespoke bookkeeping packages for companies and NPOs
- CRA audit support
- Strategic tax planning
- Year-round financial advisory
- You run your business—we’ll look after your numbers.
Final Thoughts
Bookkeeping is about more than just organizing the numbers — it’s about gaining clarity, remaining compliant, and making informed business decisions. For small business corporations throughout Canada, keeping books accurately is key to financial health.
By implementing the above bookkeeping tips, you stress and save yourself time on the bookkeeping front and that you are fully prepared for any CRA Audit or tax return surprise.
Ready to Get Started?
Let’s make your bookkeeping easier. From Toronto to Brampton to Vancouver to anywhere in Canada, Taxccount Canada is here to assist your business with consistent, professional bookkeeping and tax services.
