Starting a bookkeeping business in bc11/24/2023 How Do You Know When Your Bookkeeping is Getting the Best of You? Keeping the government paid and up-to-date will give you peace of mind, and keep you out of trouble further down the road. Similarly, anything in the AP Aging Report that’s over 90 days is probably wrong and should be written off.Įnsure your GST, PST and Payroll accounts on your balance sheet agree to the CRA. If so, it should probably be written off. Review your AR Aging Report and see if there’s anything that’s over 90 days old. The Accounts Receivable (AR) and Accounts Payable (AP) ledgers tell you how much people owe you and how much you owe others. This can get out of hand quite quickly if it’s not managed or reviewed on a monthly basis. The more accounts you reconcile, the more accurate your bookkeeping will be Ensure Your Accounts Receivable And Accounts Payable Ledgers Are Always Correct And Up to Date If you’re feeling extra enthusiastic, try keeping your mortgage, lines of credit, and any business loans reconciled on a monthly basis. This is a critical step to ensure accuracy of these bank accounts and credit cards. The purpose of a bank reconciliation is to ensure that all of the transactions on the bank statements are captured. It’s one of those important, but not urgent tasks that always seems to fall to the bottom of the to-do list. This may seem foundational, but in my experience, this critical step is often ignored. And why not? Initially, when your business is small, the bookkeeping is quite simple.īut what are the things you should look out for when you’re managing your own books? Ensure Your Bank Accounts and Credit Cards Are Reconciled Many small businesses do their own bookkeeping.
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