Bookkeeping cleanup is the process of making business records easier to review, explain, and use for tax filing. The goal is not just tidy software; it is supportable records.
Start With Bank And Credit Card Reconciliation
Reconcile every business bank and credit card account through the year-end date. Look for:
- missing transactions
- duplicate entries
- transfers recorded as income or expenses
- expenses paid personally
- business purchases on personal cards
- deposits that do not match invoices
Unreconciled accounts are one of the fastest ways for bookkeeping problems to move into tax preparation.
Organize Income Support
Create a clear trail from sales to deposits:
- invoices
- receipt books or point-of-sale reports
- payment processor reports
- bank deposits
- marketplace or platform summaries
If totals differ, document why. For example, payment processor fees may reduce deposits compared with gross sales.
Review Expense Categories
Scan expense categories for items that look unusual, personal, duplicated, or uncategorized. Common cleanup areas include meals, vehicle costs, home office expenses, software subscriptions, bank fees, subcontractors, and owner draws.
Do not guess when a receipt is missing. Make a list of missing support so it can be resolved before tax filing.
Check GST/HST Status
If the business sells taxable supplies, review whether sales exceed the GST/HST small supplier threshold. CRA rules include the $30,000 threshold over a single calendar quarter or over the previous four consecutive calendar quarters.
Businesses already registered for GST/HST should compare bookkeeping records with filed GST/HST returns.
Keep Records Long Enough
CRA generally requires required records and supporting documents to be kept for six years from the end of the last tax year they relate to. Keep the records in a way that can be retrieved if CRA asks to see support later.
Before You Ask For Cleanup Help
Prepare access to bookkeeping reports, bank statements, credit card statements, sales summaries, payroll records, and GST/HST filings. Start with a general inquiry only; do not send banking records, CRA credentials, tax slips, IDs, or uploads through the general website form.