Small Business Bookkeeping

Learn Basic Bookkeeping Practices

By L.Kenway BComm CPB Retired

Published March 23, 2024, Edited May 10, 2024

Getting Setup | Basic Bookkeeping Practices | How To Read Your Financial Statements

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Bookkeeping online data entry

This article will help you find information on your everyday problems around basic bookkeeping. It is a free bookkeeping resource for small business owners working from a home office.

Bookkeeper entering data online

I have 2 websites - (2009) and (2023). I'm in the process of transitioning all the Canadian tax compliance related information to the .ca site. The bookkeeping practices information will remain on the .com website.

You can access by clicking on the "visit" link at the upper right hand side of each page.

This page is providing you links to and an overview of the bookkeeping practices information on the .com site.  

--- How You Begin Will Determine How You Finish ---

Small Business Bookkeeping QUICK LINKS

Small Business Bookkeeping | Getting Setup

Small Business Bookkeeping | Basic Bookkeeping Practices

All About Financial Statement Reporting | How To Read Your Financial Statements

Building Your Foundation of Knowledge | Makes it easier to read your financial statements

Financial Statement Package

Reviewing Your Business Data

✔ Create your own bookkeeping worksheet in Excel to do a rough calculation of your profitability.

Liquidity Ratios - resources available so you can pay your bills ✔Operating Ratios - how efficient you are at managing your capital ✔Profitability Ratios - your ability to control expenses and earn a return on your investment in the company ✔Leverage / Solvency Ratios - percentage of debt in your company indicating suppliers' protection or whether you can take on more debt or the chance that you may go bankrupt

Cash Management

✔ Difference between profit and cash flow ✔ Create your own cash flow spreadsheet ✔ 5 ways to improve cash flow ✔ How to set pre-planned AP payment priorities

✔ Explains how you can be making a profit and always be short on cash ✔ How to read your cash flow statement ✔ How to use the cash flow statement in your business ✔How will the bank use your cash flow statement

✔ Create your own cash management spreadsheet on the back of a napkin or in an Excel spreadsheet

Focus on Yearend Bookkeeping

✔ Reconcile bank accounts AND credit card accounts ✔ Reconcile and cleanup your accounts payable subledger ✔ Reconcile bank loan ✔ Clean up those miscellaneous over and under balances on your accounts receivable and payable reports.  ✔ Do physical inventory count ✔Reconcile your payroll account(s) ✔Reconcile your sales tax account(s) ✔Take a look at how you handled any reimbursement of expenses.

✔  Closing yearend bookkeeping records ✔ Changing your fiscal yearend date  ✔  Yearend inventory count ✔ Accruing Accounts Payable ✔ Clean-up for yearend bookkeeping ✔ Accounts Payable Clean-up ✔ Outstanding CRA sales and payroll liabilities ✔ Reconciling to Government Compliance Reports Filed ✔ T4 Reconciliation

Canadian Tax Compliance Articles

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