A monthly bookkeeping service keeps a business’s financial records current throughout the year. It commonly includes recording sales and expenses, reconciling bank and credit card accounts, tracking amounts customers owe, organising supplier bills, and preparing useful monthly reports. The exact work depends on the agreement, the size of the business and the records available.
For a small business owner, the value is not simply having transactions entered into software. It is knowing whether the books are complete, whether important balances make sense, what cash is tied up in unpaid invoices, and whether enough money is being set aside for HST, payroll and other obligations.
What does monthly bookkeeping usually include?
The following activities are common components of a monthly bookkeeping arrangement. They are not automatic promises that every provider includes every task. Ask for a written scope so you understand what will be done, how often it will be completed and what remains your responsibility.
1. Recording and categorising business transactions
Sales, supplier invoices, bank charges, subscriptions, equipment purchases, vehicle costs and other transactions are entered into the accounting records and assigned to appropriate accounts. Good categorisation helps separate ordinary operating costs from assets, owner withdrawals, loans and other items that should not be treated as everyday expenses.
For example, a consultant receives $12,000 from clients during a month and pays $1,800 for software, insurance, internet and subcontractor support. The bookkeeper records the transactions using supporting documents, checks whether sales tax was charged correctly where applicable, and avoids treating transfers between the business bank account and a credit card as new income or expenses.
2. Bank and credit card reconciliations
A reconciliation compares the accounting records with the statement issued by the bank or card provider. The goal is to explain the difference between the book balance and the statement balance, not simply to make the numbers match by entering a balancing figure. Outstanding cheques, deposits in transit, bank fees and duplicate imports should be reviewed.
Suppose the bookkeeping software shows $8,450 in the business bank account, while the month-end statement shows $8,210. A $240 payment may have been recorded twice, or a bank charge may be missing. A proper reconciliation investigates the difference and documents the correction before the owner relies on the balance.
3. Accounts receivable and accounts payable
Accounts receivable is the amount customers still owe the business. Accounts payable is the amount the business owes suppliers. Tracking both helps an owner distinguish sales from cash received and expenses from bills actually paid. A basic aged receivables report can show which customers are current, 30 days overdue or much older.
Imagine a design studio issues five invoices totalling $9,000 but receives only $5,500 before month-end. The income statement may show the revenue earned, while the receivables report shows the unpaid $3,500. That information supports follow-up with customers and more realistic cash planning.
4. GST/HST record organisation
For a registered business, bookkeeping should keep track of sales tax charged and tax paid on eligible business purchases. The records should support the GST/HST return and the input tax credit claims being made. That means keeping invoices, credit notes and other supporting documents, and reviewing tax codes rather than assuming every expense has recoverable HST.
A meal, a personal expense, a purchase from a supplier that did not charge GST/HST, and a regular business software subscription may all need different treatment. The bookkeeper should flag unclear items instead of automatically treating every amount as a fully claimable input tax credit.
Monthly bookkeeping can make GST/HST preparation less rushed because the sales, purchase and tax accounts are reviewed during the year. Presyz provides monthly bookkeeping support for small businesses and self-employed professionals, with the scope agreed around the business’s records and needs.
5. Monthly financial reports
A typical reporting package may include a profit and loss statement, a balance sheet and selected supporting schedules. The profit and loss statement summarises income and expenses for a period. The balance sheet shows assets, liabilities and equity at a point in time. Depending on the arrangement, reports may also include cash movement, unpaid customer invoices or supplier balances.
Reports are useful only when the owner understands them. If revenue increased but the bank balance fell, the reason could be unpaid invoices, inventory purchases, loan payments, equipment spending or tax remittances. Bookkeeping provides the records; a review helps turn those records into decisions.
Different businesses need different monthly support
Scenario A: A self-employed consultant
A consultant has a business bank account, a credit card, recurring software subscriptions and several client invoices each month. The most useful monthly tasks may be recording revenue and expenses, reconciling the accounts, tracking unpaid invoices, separating owner withdrawals and keeping the HST information current. The consultant may not need inventory tracking or complex supplier payment workflows.
Scenario B: A home renovation contractor
A contractor receives deposits, pays material suppliers, hires subcontractors and buys tools. The books may need more detailed job or project tracking so the owner can compare what each project earned with what it cost. The bookkeeper may also need to ask whether a purchase is a consumable expense, equipment, a deposit or a cost that should be allocated to a particular job.
Scenario C: A small online store
An online seller may receive marketplace payouts after platform fees, refunds and payment processing charges are deducted. Recording only the net deposit can hide sales and expenses. A good bookkeeping process reconciles the sales reports to the payout, records fees and refunds separately, and reviews inventory and sales tax data where those tasks are included in the service.
What should you provide each month?
Bookkeeping works best when records arrive on a predictable schedule. Depending on the business, a monthly handoff may include:
Bank and credit card statements, plus access to connected feeds where appropriate.
Sales invoices, point-of-sale or marketplace reports, and customer receipts.
Supplier bills, expense receipts and explanations for unclear transactions.
Loan statements, lease details and records of equipment purchases.
Payroll summaries and remittance information if payroll is handled separately.
Details of owner contributions, withdrawals, reimbursements and unusual transactions.
Keep original records in an organised, secure location. The CRA generally requires businesses to retain records that support their income, expenses and GST/HST reporting, usually for six years from the end of the relevant year. Digital files should remain readable and retrievable if the CRA asks to review them.
What is not automatically included?
Monthly bookkeeping should not be assumed to include every accounting or tax service. Corporate or personal income tax returns, payroll processing, preparation of special elections, financial forecasts, financing packages, catch-up work and management advice may be separate. A provider should explain where routine processing ends and where another service begins.
Ask whether the provider prepares reports only or also schedules a review to explain them. Ask who follows up on missing documents, who approves payments, who files returns and who is responsible for making tax payments. Clear responsibilities reduce the risk of an important deadline being missed because each party thought the other was handling it.
How to decide whether monthly bookkeeping is worthwhile
Monthly support is particularly useful when transactions are growing, bank reconciliations are falling behind, HST periods are stressful, customer balances are unclear or year-end cleanup takes too long. It can also help an owner spot recurring costs and understand margins before making a hiring or equipment decision.
A useful first step is to list the accounts, sales channels and recurring obligations that need attention, then compare that list with the proposed service scope. Presyz supports small businesses with bookkeeping and related GST/HST and payroll services. You can review the
Frequently asked questions
How often should a small business reconcile its bank account?
Monthly is a practical minimum for many small businesses. Businesses with high transaction volumes, frequent cash deposits or several sales platforms may benefit from more frequent checks.
Does a bookkeeper prepare my corporate tax return?
Not automatically. Bookkeeping organises the underlying records. Corporate tax preparation is a separate service unless it is specifically included in the written scope.
Can I hire a bookkeeper if my records are already behind?
Yes. Ask whether catch-up work is available and how the provider will identify missing statements, duplicate transactions and unreconciled balances before moving to a monthly process.
Official references
CRA: Business records you need to keep.
CRA: GST/HST records to keep.
General educational content only. Verify current CRA and provincial guidance before acting.