For most business owners, “bookkeeping” is a stressful word. It’s the shoebox of receipts, the late-night data entry, and the nagging fear that you’ve missed something—or that the CRA will be calling.
We’re here to tell you it doesn’t have to be that way.
Good bookkeeping isn’t a chore; it’s a tool for peace of mind. Here are five simple habits that will keep you organized, compliant, and ready for a stress-free tax season.
5 Simple Bookkeeping Habits That Save You Time, Money, and Stress
1. Open a Dedicated Business Bank Account. Today. This is the #1 rule. Stop using your personal chequing account for business. Mixing your personal and business expenses (“co-mingling”) is a nightmare for you, your accountant, and the CRA. A separate account is the cleanest, simplest way to create a clear record of your business activity.
2. Ditch the Shoebox. Go Digital. The CRA accepts digital copies of your receipts. You do not need to keep a shoebox full of faded paper. Use a simple, secure tool (we provide this for our clients) to snap a photo of your receipt with your phone. The image is saved, the data is captured, and the paper can be tossed. This one habit will save you dozens of hours.
3. This Isn’t Your Money: The GST/HST Account When you collect GST/HST, it is not your revenue. You are simply holding it for the government. The fastest way to get into cash-flow trouble is to spend that money. The Pro-Habit: Open a second business bank account. Every time you get paid, transfer the GST/HST portion into this “Tax” account. When it’s time to file your return, the money is sitting there, ready to go. No panic, no stress.
4. Reconcile Monthly, Not Annually “Reconciling” just means making sure your bank statement and your accounting software match. Doing this once a month takes about 30 minutes. Doing it once a year takes 30 hours (and a lot of frustration). A monthly check-in is the only way to catch errors, spot fraud, and know if you’re actually profitable.
5. Know Your True “Payroll” Cost When you hire an employee at $25/hour, their real cost to you is much higher. You also have to pay the employer’s portion of CPP and EI, and account for WSIB/WCB premiums. Failing to budget for these “hidden” costs is a major pitfall. Always calculate the full cost of a new hire.
The Best Habit of All? Outsourcing.
These five habits will give you more clarity and control. But as a busy entrepreneur, your time is best spent serving your clients and growing your business, not doing data entry.
The best habit is to find a trusted partner to handle it all for you.
Our Full-Service Accounting package takes all of this off your plate—the bookkeeping, the receipt management, the GST/HST filing, and the payroll. We give you back peace of mind, and your time.
Good bookkeeping isn't a chore; it's a tool for peace of mind. But it's also time-consuming, laborious, and easy to make mistakes that can have serious ripple effects on your company's finances. For peace of mind, outsource your bookkeeping to a reputable firm.
Ready to take bookkeeping off your to-do list for good?
Schedule a free consultation, and let’s talk about how we can make your finances simple and stress-free.
