Bookkeeping 101

Bookkeeping is the process of recording, classifying, and organizing financial transactions of any business. In Canada, bookkeeping 101 is a crucial aspect of managing any business, regardless of size, and is an essential foundation determining your business’s financial overall health.

Karen Johnson CPA is a top-rated tax accountant in Barrie, Ontario. We offer many different small business accounting services, including bookkeeping. Here are some of the critical aspects of Canadian bookkeeping that entrepreneurs and business owners need to know. Contact us today!

Recording Financial Transactions

The first step towards accurate bookkeeping is the proper documentation of all financial transactions such as sales, expenses, invoices, bills, and payments. It’s essential to record everything that affects your business finances on a daily basis.

Classifying and Categorizing

Once you have recorded all business transactions for your Ontario business, you need to organize them into different categories. For example, separating expenses by types, such as rent or utilities bills, freelancers or subcontractors, and purchases can assist in the preparation of financial statements at the end of the period.

Reconciling Accounts

It’s crucial to reconcile your business bank statement to your records to ensure that all transactions are accounted for and accurate. Reconciling also enables the detection of errors, duplicate transactions, or fraudulent activities.

Keeping and Organizing Receipts

Business owners need to keep a record of all receipts, invoices, and other relevant documents for financial transactions. Keep receipts for your Barrie small business organized in a reliable system either electronically or physically, depending on personal preference, ease, and accounting software handling.

CALL OUR BARRIE TAX ACCOUNTANT TODAY

Bookkeeping 101 is not just about organizing records and figures; it’s about gathering insights into your business's financial health, expenses, profits, and losses, so you can learn more about your business's growth, efficiencies, and inefficiencies. Partner with our Barrie tax accountant, Karen Johnson CPA, to learn more today.