A bookkeeping checklist for Canadian small businesses

Most expensive tax bills we see are not high rates. They are six months of unreconciled bank statements. Clean books are what let a personal or corporate return stay at the published price.

Once a month

Keep a folder for contracts, the minute book, HST returns, and the prior T2. When CRA writes, that folder is the difference between a two-day reply and a reconstruction.

• Download the business bank and credit-card statements. Reconcile to the cent.
• Save the source document for every expense over your threshold — a photo is fine if it is readable.
• Code HST on each expense. Meals are generally 50% deductible and the ITC follows the deductible portion.
• Record shareholder or owner draws separately from wages. Mixing them is how a shareholder loan becomes taxable.
• If you have payroll, remit CPP, EI, and income tax on the CRA schedule. 2026 employee CPP is 5.95% up to the $74,600 ceiling, plus CPP2 of 4% between $74,600 and $85,000. EI is 1.63% up to $68,900.