Monthly bookkeeping checklist for incorporated businesses in Ontario

Why a monthly bookkeeping checklist matters for incorporated businesses in Ontario

Whether you run a small incorporated business in Brampton or a growing company in Toronto, a consistent monthly bookkeeping routine reduces surprises at tax time and helps you manage cash flow, payroll obligations, and provincial filings. This monthly bookkeeping checklist for incorporated businesses in Ontario gives a practical, repeatable workflow you can use or share with your bookkeeper.

Quick overview: what to do every month

At minimum, your month-end routine should: reconcile accounts, close payroll accurately, remit required payroll source deductions, collect and remit HST/GST where applicable, update receivables and payables, and review WSIB and provincial payroll taxes such as the Employer Health Tax (EHT) if they apply to you.

Monthly bookkeeping checklist for incorporated businesses in Ontario (step-by-step)

1. Capture and sort transactions

– Collect bank, credit card, and payment-platform statements for the full month.

– Save digital receipts and invoices in a consistent folder and name convention.

– Record any owner draws, shareholder loans, or intercompany transfers separately.

2. Reconcile cash and credit accounts

– Reconcile each bank and credit card account to the statement balance.

– Investigate outstanding items over 60 days: uncashed cheques, duplicate payments, or missing deposits.

3. Review and close payroll

– Confirm payroll totals match pay stubs and the payroll journal.

– Verify gross pay, taxable benefits, and deductions (CPP, EI, income tax) are recorded.

– For remittance frequency and due dates, check your CRA remitter type — many incorporated employers remit monthly (the 15th of the following month) while eligible small or new employers may remit quarterly. Your remitter type determines when you must send source deductions to the Canada Revenue Agency.

4. Make payroll remittances and WSIB reporting

– Remit payroll source deductions to the CRA by your remitter due date (based on your remitter type).

– Report payroll to WSIB and pay premiums according to your WSIB reporting frequency; WSIB reporting is based on when employees are paid, not when the work was done. Keep WSIB payroll and classification details current so premium calculations stay accurate.

5. HST/GST collection and remittance

– Reconcile HST collected on sales and HST paid on eligible purchases.

– Prepare and file your HST return according to your assigned reporting period (monthly, quarterly, or annually) and remit any net amount owing before the deadline.

6. Provincial payroll taxes: Employer Health Tax (EHT)

– Determine whether you must file EHT. Ontario’s EHT applies based on total Ontario remuneration and has specific exemption thresholds and instalment rules for larger payrolls.

– If your Ontario payroll exceeds the EHT filing threshold or you were issued a personalized return, include EHT planning in your monthly close and set reminders for annual filing dates and required instalments.

7. Accounts receivable and collections

– Age receivables by invoice date and follow up on invoices older than your standard terms (e.g., 30 days).

– Record partial payments and apply receipts promptly so your AR aging stays accurate for cash-flow planning.

8. Accounts payable and accruals

– Enter vendor invoices and schedule payments to preserve vendor terms without risking late fees.

– Accrue known monthly expenses (rent, utilities, recurring subscriptions) that will be paid next month to match expenses to the period when the business used the services.

9. Intercompany and owner transactions

– Reconcile shareholder loans, owner draws, and any payments between related entities.

– Document resolutions or approvals for unusual or non-arm’s-length transactions and keep supporting minutes or emails in the file.

10. Review financials and KPIs

– Produce a month-end profit & loss and balance sheet and compare key figures to budget and prior periods.

– Track KPIs such as cash burn, days sales outstanding (DSO), gross margin percentage, and current ratio to spot trends early.

Practical checklist table (monthly)

Examples of common monthly pitfalls and how to avoid them

Missing payroll remittance dates

Because remittance frequency depends on your CRA remitter type, not all employers send payroll remittances on the same schedule. Confirm your remitter type in CRA accounts and set calendar reminders for the exact due date for each pay period so payments are on time.

Under-reporting WSIB payroll

WSIB requires employers to report based on pay dates and to use correct classification codes. Keep payroll exports and timesheets aligned and review the classification if your business activities change to avoid retroactive adjustments.

HST not reconciled to bank deposits

Especially for businesses that take payments through third-party platforms, ensure HST collected is reconciled to deposits and fees so your HST return reflects the correct net position.

How we help incorporated clients in Brampton and Toronto

We support incorporated business owners with bookkeeping, payroll setup, and monthly close procedures. If you’re newly incorporated or moving payroll in-house, our services include onboarding, setting up remittance calendars, and reconciling WSIB and provincial payroll obligations. Learn more about our firm at https://wealthywaveaccounting.com/ and our team at https://wealthywaveaccounting.com/about-us/. If you’re thinking about incorporating or need help with incorporation-related bookkeeping, see our incorporating services: https://wealthywaveaccounting.com/services/incorporating/.

Getting started: a three-month onboarding plan

1. Month 1 — Clean up: reconcile prior months, standardize chart of accounts, and set up automated feeds.
2. Month 2 — Controls: implement payroll calendar, WSIB classification review, and HST mapping.
3. Month 3 — Reporting: produce recurring monthly financials and KPI dashboards and schedule quarterly reviews.

Conclusion

Adopting this monthly bookkeeping checklist for incorporated businesses in Ontario keeps payroll, HST, WSIB and provincial obligations under control and gives you clearer financial insights. If you’d like help tailoring the checklist to your corporation — especially for Brampton and Toronto businesses — book a consultation or contact us or call (647) 606-1824.

General information only. Tax, accounting, legal, and financial outcomes depend on each client’s facts and applicable rules. Professional advice should be obtained before acting.