How often should a small business in Québec do its bookkeeping?

Short answer: for most small businesses, once a month is the right rhythm: record every transaction and reconcile the bank and credit card accounts before the next statement arrives. If you file GST/QST monthly or run payroll, monthly is the minimum. Very busy businesses (retail, restaurants, contractors with many jobs) do better with a weekly pass. Quarterly can work only if you have few transactions and no employees.

What sets the minimum pace?

Your books have to be current every time you owe something to the government. In Québec, two calendars drive that.

  • GST/QST returns. The CRA assigns an annual reporting period if your annual taxable supplies are $1,500,000 or less, quarterly above $1,500,000 up to $6,000,000, and monthly above $6,000,000. You can also choose to file more often. Revenu Québec assigns your frequency for both taxes based on your total annual taxable sales in Canada (including those of associated businesses), and it shows on your confirmation of registration.
  • Return due dates. Monthly and quarterly GST/QST returns are due one month after the end of the period. Annual returns are generally due three months after year-end (June 15 for an individual with business income and a December 31 year-end, with any balance payable by April 30).
  • Payroll remittances. Regular remitters send source deductions to the CRA by the 15th of the month after the pay was made. Revenu Québec's monthly remittances are also due on the 15th of the following month. Small employers may qualify to remit quarterly (or, at Revenu Québec, once a year), and large employers remit more often.

If you file GST/QST quarterly, your books need to be clean four times a year at least. With payroll, most employers are on a monthly schedule anyway. More on choosing your period in our article on GST/QST filing frequency.

Weekly, monthly or quarterly: which one fits you?

  • Weekly. Dozens of sales or purchases a week, cash on hand, inventory, or tight cash flow. Fifteen to thirty minutes a week beats a lost Saturday every month.
  • Monthly. The default for most service businesses, self-employed people with GST/QST numbers and anyone with even one employee.
  • Quarterly. Only for a quiet business with few transactions, no payroll and a quarterly or annual GST/QST period. Even then, the bank reconciliation is easier monthly.
  • Once a year. This is how people end up reconstructing twelve months of receipts in April. We don't recommend it.

A monthly routine that holds up

  1. Download the bank and credit card transactions (or let your software import them).
  2. Categorize each one and attach the receipt or invoice.
  3. Record sales and send invoices that are still waiting.
  4. Check who owes you money and follow up on late payments.
  5. Reconcile every bank and credit card account to the statement (see how a bank reconciliation works).
  6. Note the GST and QST collected and paid for the period.
  7. Look at the month's profit and loss for anything odd.

For a business with 50 to 100 transactions a month, this usually takes a couple of hours once the habit is in place.

Why not just wait for year-end?

Late books cost money in quieter ways. Receipts go missing, so expenses and input tax credits never get claimed. You find a cash problem after it hits. And when the CRA or Revenu Québec asks a question, you answer from memory instead of from records.

Want us to keep your books current?

Book a free 30-minute session at soleraaccounting.ca/rendez-vous or call 450 612-7223. We'll look at your volume, your GST/QST period and your payroll, and suggest a schedule that fits. Service in French, English and Arabic.

This article is general information, not personalized accounting or tax advice.

Frequently asked questions

Is monthly bookkeeping required by law?

No law sets a bookkeeping frequency. You must keep adequate records, file your GST/QST returns and remit payroll deductions on time, and those deadlines usually make monthly bookkeeping the practical minimum.

I file GST/QST once a year. Can I do my books once a year too?

You can, but it is risky. Annual filers still need records for the whole year, and a monthly or quarterly pass makes the annual return faster and catches missing receipts while you can still get copies.

How long does monthly bookkeeping take?

It depends on volume. With bank feeds and receipts captured as you go, a business with 50 to 100 transactions a month usually needs a couple of hours, including the bank reconciliation.

Sources

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