How to do bookkeeping for a small business (Canada)

Bookkeeping isn’t mysterious; it’s a routine. Do the same handful of things every month and your books stay current, your HST is ready, and tax season is boring. Skip a few months and it becomes the dreaded catch-up job. Here’s the routine.

Set it up once

1. Separate the money. A dedicated business bank account and card. Mixing personal and business is the single biggest cause of messy books.
2. Pick your system. Software you’ll actually keep up with — or a system that’s set up and run for you if you won’t. Be honest about which you are.
3. Register for HST when you cross the line. $30,000 in revenue over four quarters — see how to get an HST number.

The monthly routine

1. Record income. Every sale and invoice, with HST, matched to what actually landed in the bank.
2. Record expenses. Every bill and receipt, categorised, with the image kept — that’s your input tax credits and your proof.
3. Reconcile the bank. Match your books to the bank statement so nothing is missed or double-counted. This is the step people skip and regret.
4. Check who owes what. Chase overdue invoices; note upcoming bills.
5. Read one number. At minimum, know whether you made money this month. That’s the point of all of it.

If reading that list made you tired, that’s the honest signal — Pocket Ledger runs this routine for you so being current is the default. See what’s included or book a setup call.

When to stop doing it yourself

DIY works until it doesn’t. The usual tipping points: receipts pile up, reconciliation slips for a couple of months, or the bookkeeping is eating evenings you’d rather spend on the business. If you’re already behind, that’s catch-up bookkeeping — fixable, and worth doing before it compounds. We went deeper on the decision in do I need a bookkeeper?.

The set-up-for-you version

The same routine, without you running it: we set up a real accounting system around your business and run it for one fixed price, and you handle the everyday capture from a chat — send a receipt, invoice a customer, ask what you owe in HST. See our bookkeeping services or the price.

Questions

Can I do my own small business bookkeeping?

Yes, especially early on with a clean setup and the monthly routine above. The question is whether it’s the best use of your time as the business grows.

How often should I do my books?

A little and often beats a big catch-up. Weekly capture and a monthly reconciliation is a good rhythm for most owners.

What’s the hardest part?

Reconciliation and staying consistent. The mechanics are simple; the discipline is the work — which is exactly the part a set-up-for-you system removes.

This is general information, not tax advice. Rules and figures change and depend on your situation — your accountant makes the final call.