Here’s what I’ve learned from working with Canadian business owners. Many are juggling receipts and monthly books alongside everything else they need to do. And without the right system, it can feel overwhelming.
Your monthly bookkeeping reports aren’t just paperwork – they’re your business intelligence dashboard. When done right, they show you exactly where your money is going, what’s working, and what needs attention.
Your Monthly Bookkeeping Checklist
Before generating each bookkeeping report, complete these essential tasks:
If you skip these basics, your reports won’t give you the accurate insights you need — and inaccurate data can harm your bookkeeping review later.
The 6 Reports That Matter Most
1. Profit and Loss Statement
This is your monthly business report card showing revenue, expenses, and net income. Your P&L should clearly separate taxable and non-taxable income for Canadian tax purposes.
Compare month-to-month trends. Is revenue growing? Are expenses increasing? These patterns tell an important story.
2. Balance Sheet
Your balance sheet shows what you own (assets), what you owe (liabilities), and your equity at month-end. Make sure you’re classifying everything correctly according to Canadian accounting standards or consult expert bookkeepers in Canada.
3. Cash Flow Statement
Profit doesn’t always equal cash. This bookkeeping report tracks actual cash movement through operating activities, investing activities, and financing activities. It’s one of the most valuable reports you’ll review for understanding your true financial position.
4. GST/HST Summary Report
If you’re registered for GST/HST, track collected taxes, input tax credits, and your net amount owing or refund due.
Keep monthly GST/HST records accurate to simplify filing and keep the CRA happy.
5. Accounts Receivable Aging Report
This shows who owes you money and for how long. An invoice that’s 90 days old has a much lower chance of getting paid than one that’s 30 days old.
6. Payroll Summary Report
Track gross wages, deductions (income tax, CPP, EI), employer contributions, and other deductions. Beyond compliance, this helps you assess true labour costs—something many bookkeepers in Canada stress to their clients.
Best Practices That Work
Get Your Timing Right
Complete reports within 10 days of month-end. Timely financial data helps you make informed decisions while they still matter.
Set calendar reminders for your monthly closing process.
Choose the Right Software
Use Canadian-compliant software like Xero, QuickBooks, Sage 50, or FreshBooks. Modern AI-powered bookkeeping tools can automate much of this work.
Reconcile Everything
Bank reconciliation is essential for accuracy. Do it monthly for every account.
Reconcile accounts as soon as statements are available, not at month-end.
Document Thoroughly
Keep every receipt and understand essential bookkeeping terms to navigate confidently. Follow best practices for accurate Canadian tax return bookkeeping.
Analyze Your Reports
Don’t just generate reports – study them. Use our guide on how to review bookkeeping reports effectively.
Compare current month performance to the same month last year for seasonal perspective.
When to Consider Professional Help
Consider professional assistance when your business is growing faster than your bookkeeping skills, you’re dealing with complex transactions, or bookkeeping takes more than 20% of your time.
Our 7-point bookkeeping checklist can help evaluate your current processes, and our guide on outsourcing your bookkeeping walks through the transition process.
The Bottom Line
Monthly bookkeeping reports help you understand your business at a deeper level. When you know your numbers, you make better decisions, spot problems early, and identify opportunities before competitors do.
The time you invest in proper monthly bookkeeping pays dividends through better cash flow management, reduced tax preparation costs, and smarter business decisions.
Want to learn more about our bookkeeping services? Get in touch with one of our experts at KP BOOKS CO.
