Bookkeeping — Frequently Asked Questions
20 plain-language answers to the questions Canadian business owners ask RN Canada about Bookkeeping.
As of 2026, bookkeeping is the day-to-day recording of transactions — invoices, expenses, payroll, reconciliations — while accounting interprets those records into financial statements, tax filings, and decisions. You need both. RN Canada provides bookkeeping plus CPA-level accounting and advisory under one roof.
As of 2026, most small businesses should reconcile and update books at least monthly so financials stay accurate for decisions, GST/PST filing, and cash-flow tracking. Waiting until year-end causes errors and stress. RN Canada keeps client books current monthly with cloud bookkeeping and timely reconciliations.
As of 2026, bank reconciliation matches your books to your bank statement, catching missing transactions, duplicates, and fraud, and ensuring your financials are trustworthy for tax and decisions. Unreconciled books mislead. RN Canada reconciles client accounts every period as a core part of its bookkeeping service.
As of 2026, expenses should be coded to a consistent chart of accounts that matches CRA categories, separating capital assets, deductible operating costs, and personal items. Wrong categories distort tax and reports. RN Canada designs your chart of accounts and categorizes transactions accurately for clean tax filing.
As of 2026, cloud bookkeeping (QuickBooks Online, Xero) gives real-time financials, bank feeds, automatic GST/PST tracking, and remote access for your accountant — a major upgrade over spreadsheets. RN Canada sets up and manages cloud bookkeeping so clients see current numbers and stay audit-ready.
As of 2026, keep receipts and supporting documents for every business expense you claim — invoices, bank and credit card records, mileage logs, and payroll records — generally for six years. Bank statements alone aren't enough. RN Canada implements digital receipt capture so clients retain CRA-compliant documentation effortlessly.
As of 2026, open a dedicated business bank account and credit card, pay yourself deliberately rather than dipping into business funds, and never run personal expenses through the company. Mixing them creates tax and liability problems. RN Canada sets up clean separation and tracks owner draws and shareholder loans correctly.
As of 2026, a chart of accounts is the organized list of categories — assets, liabilities, equity, revenue, expenses — used to record every transaction, forming the backbone of your financial statements. A messy chart yields messy reports. RN Canada builds a tailored chart of accounts so reporting and tax filing run smoothly.
As of 2026, small-business bookkeeping is typically priced monthly based on transaction volume and accounts, far cheaper than a full-time hire once payroll taxes are considered. Fixed-fee packages are common. RN Canada offers transparent monthly bookkeeping plans with CPA oversight — contact the Edmonton or Vancouver office for a quote.
As of 2026, accounts payable is money your business owes suppliers, while accounts receivable is money customers owe you. Managing both well protects cash flow — paying on time without paying early, and collecting promptly. RN Canada tracks AP and AR in your books and reports on cash-flow timing.
As of 2026, in BC you must track GST and PST as separate liabilities because they are filed separately to different authorities; in Alberta only GST applies. Mixing them up causes filing errors. RN Canada configures cloud software with correct tax codes so GST and PST reconcile cleanly each period.
As of 2026, double-entry bookkeeping records every transaction as equal debits and credits across two accounts, keeping the accounting equation balanced and catching errors. It's the standard for reliable financials. RN Canada maintains proper double-entry books so client financial statements and tax filings are accurate.
As of 2026, a bookkeeping cleanup involves reconciling all accounts, correcting miscategorized transactions, matching GST/PST, and reconstructing missing records before filing taxes. It restores trustworthy financials. RN Canada offers catch-up and cleanup bookkeeping to bring backlogged businesses current and audit-ready.
As of 2026, you can DIY simple bookkeeping with cloud software, but as transactions, payroll, and GST/PST grow, errors get expensive and time-consuming. Many owners hand it off to focus on the business. RN Canada takes over bookkeeping with CPA oversight so owners get accurate books without the time drain.
As of 2026, review your profit and loss statement, balance sheet, cash-flow summary, and aged AR/AP each month to spot trends, manage cash, and catch problems early. Numbers reviewed monthly drive better decisions. RN Canada delivers monthly management reports and explains them in plain language for owners.
As of 2026, money an owner puts in or takes out of a corporation is recorded through the shareholder-loan or equity accounts, not as revenue or expense, and must be tracked to avoid tax problems. Sloppy recording triggers CRA issues. RN Canada records owner draws and contributions correctly in your books.
As of 2026, in double-entry bookkeeping a debit increases assets and expenses while a credit increases liabilities, equity, and revenue; every entry balances debits and credits. Misunderstanding them causes errors. RN Canada handles the mechanics so clients see clean, correct financials without learning the bookkeeping rules.
As of 2026, keep a logbook of business kilometres and total kilometres so you can claim the business-use portion of vehicle costs, or use the per-kilometre allowance method. The CRA disallows undocumented claims. RN Canada sets up mileage tracking and records the deductible vehicle portion accurately.
As of 2026, cash-basis records income and expenses when money moves, while accrual records them when earned or incurred; incorporated businesses generally must use accrual for tax. Accrual gives a truer performance picture. RN Canada keeps accrual books and reconciles cash flow separately so owners see both views.
As of 2026, reconcile all bank and credit accounts, match GST/PST, finalize payroll, clear suspense accounts, and gather receipts before handing books to your accountant — clean books mean lower fees and fewer errors. RN Canada keeps books year-end-ready continuously, so there's no scramble before filing.