The Ultimate Bookkeeping Checklist for Small Businesses

Keeping your books in order isn’t just about avoiding stress at tax time—it’s about understanding your cash flow, making smart financial decisions, and keeping your business running smoothly. This bookkeeping checklist will help you stay organized, avoid costly mistakes, and stay on top of invoices, receivables, and collections all year long.

Daily Bookkeeping Tasks

• Record all sales and payments received
  Enter every sale, deposit, and incoming payment to keep your income accurate and up-to-date.

• Log cash expenses immediately
  Snap a photo of receipts or record them in your accounting system to avoid losing track of deductible costs.

• Separate personal and business finances
  Always use dedicated accounts and cards for business expenses. It makes tracking receivables and deductions far easier.

• Note overdue or partial payments
  Keep a daily eye on invoices that are overdue or partially paid to avoid long-term collection issues.

Weekly Bookkeeping Tasks

• Review and categorize transactions
  Sort expenses correctly (meals, travel, supplies, etc.) and ensure all deposits match expected customer payments.

• Reconcile bank and credit card feeds
  Catch missing transactions, duplicates, or discrepancies early to maintain clean, accurate records.

• Monitor accounts receivable
  Check unpaid invoices weekly. Send gentle reminders for overdue accounts to keep cash flowing.

• Document any payment arrangements
  If clients are on partial payment plans, record them clearly to avoid confusion or lost income later.

• Track mileage and other deductions
  These small write-offs add up and shouldn’t be overlooked.

Monthly Bookkeeping Tasks

• Fully reconcile all accounts
  Ensure every bank, credit card, and loan statement matches your records.

• Review outstanding collections
  Identify overdue invoices that may require follow-ups, late fees, or additional outreach. The longer you wait, the harder it becomes to collect.

• Pay contractors and vendors
  Ensure all invoices are correct, taxes are accounted for, and payments are on schedule.

• Generate an Accounts Receivable Aging Report
  Use this report to see which clients owe you money and how long payments have been outstanding.

• Review your profit and loss statement
  Understand your monthly performance and see how late payments impact cash flow.

• Back up your financial data
  Keep a secure copy of all bookkeeping records for safety.

Quarterly Bookkeeping Tasks

• Review tax instalments and withholdings
  Ensure you’re on track with CRA payments to avoid penalties.

• Assess collections strategy
  Identify chronic late payers and consider deposits, upfront payments, or stricter credit terms going forward.

• Update your budget and cash flow forecast
  Include unpaid invoices when projecting available cash for the next quarter.

• Meet with your bookkeeper or accountant
  Quarterly reviews help catch data entry errors and plan for upcoming expenses or tax liabilities.

Year-End Bookkeeping Tasks

• Prepare all tax documents
  Gather receipts, statements, and reports for your accountant early to avoid last-minute stress.

• Finalize accounts receivable and collections
  Follow up on all outstanding invoices before year-end to improve cash flow and show a cleaner balance sheet.

• Issue T4/T5 slips or subcontractor forms
  Keep payroll and contractor records compliant with CRA requirements.

• Review full-year financial statements
  Assess profitability, unpaid invoices, and where you can cut costs or improve collections.

• Plan for the next year
  Use these insights to set clear payment terms, tighten up collections processes, and strengthen your bottom line.

Final Thoughts

A solid bookkeeping routine keeps your business financially healthy and helps you avoid surprises at tax time. By monitoring receivables and following up on unpaid invoices regularly, you protect your cash flow and strengthen your business foundation.

If you’re behind, start with today’s tasks and tackle overdue collections step by step. And when it becomes too much to juggle, a professional bookkeeper can help you clean up your books, manage receivables, and keep your finances running like clockwork.