Written by Tosif Hanif, CPA, ACCA, ACFE, MSc — Director, Accounting and Finance, Wall Tax Pro, Mississauga.
Bookkeeping problems rarely announce themselves. They show up at year-end as a higher tax bill, a delayed financial statement, or an HST balance nobody planned for.
1. Mixing personal and business accounts
A separate business bank account and card makes every later step simpler, from expense claims to an eventual CRA review.
2. Recording HST only at filing time
HST collected is not revenue. Track it as it arises and set it aside, or remittance periods become cash flow emergencies.
3. Losing receipts for legitimate expenses
An expense without support can be denied on review. Digital copies attached to each transaction protect the deduction.
4. Misclassifying contractors and employees
Treating an employee as a contractor can create source deduction liabilities, interest and penalties that reach back several years.
5. Ignoring the bank reconciliation
Unreconciled accounts hide duplicate entries and missing income. Monthly reconciliation keeps your reporting reliable.
6. Waiting until year-end to look at the numbers
Monthly reporting lets you act while decisions are still available. Year-end reporting only records what already happened.
7. Letting payroll run without review
Remittance schedules, vacation accruals and taxable benefits all need periodic checking. Wall Tax Pro handles payroll and bookkeeping together so the two always agree.
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Wall Tax Pro provides professional tax, accounting, bookkeeping and advisory support for clients in Mississauga, across Canada, and for US filers. Call 647-297-4793 or send us a message.
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