Short answer: every month, a Red Deer small business should track income, expenses, bank and credit card balances, money owed to you, bills you owe, GST, payroll, and cash flow. If those eight things are up to date, you know whether the business actually made money, what is coming in, and what tax is building up — without digging through a pile of receipts at year-end.
That is the whole point of monthly bookkeeping. It is not about paperwork for its own sake. It is about catching problems while they are small: a client who has not paid, a subscription you forgot about, or a GST balance that has quietly grown. A short monthly check keeps the books honest and makes tax time far less painful.
What to track every month
Work through the list below once a month, ideally in the first week, while the month before is still fresh. You do not need fancy tools — you need a routine you actually stick to.
1. Income and sales
Record every sale and every other bit of income, and match it to the money that landed in the bank. If an invoice was issued but not paid, it still belongs in your records. That gap between invoicing and getting paid is where a lot of small businesses lose track of what they have really earned.
2. Expenses and receipts
Log every business expense with the receipt to back it up — fuel, supplies, software, meals with clients, mileage, and the rest. Sort expenses into sensible categories as you go. Sorting them at the end of the year, from memory, is how deductible costs get missed.
3. Bank and credit card reconciliation
Reconcile every bank account and credit card to the statement. Every transaction should have a match, and anything that does not match needs a reason. This one step catches duplicate charges, missed deposits, and bank errors, and it is the fastest way to know your books are right.
4. Accounts receivable — who owes you
List every unpaid invoice, how old it is, and who owes it. Follow up on anything past due. Red Deer has plenty of businesses that run on 30-day terms, and a 30-day invoice quietly becomes a 90-day one if nobody chases it. Your receivables list is a to-do list, not just a report.
5. Accounts payable — what you owe
Keep a matching list of your own unpaid bills: rent, suppliers, utilities, and contractors. Knowing what is due, and when, stops late fees and awkward calls, and it stops you from spending money that is already spoken for.
6. GST collected and paid
Track the GST you collect on sales and the GST you pay on business purchases. Alberta has no provincial sales tax, so GST at 5% is the sales tax to watch. Set the net amount aside as you go, so a filing never turns into a scramble for cash.
7. Payroll and contractor payments
If you have staff, check that wages, deductions, and remittances are recorded and up to date. If you use contractors, keep their invoices and payment records together. Payroll mistakes are expensive to fix after the fact, and they are the kind of thing the CRA notices.
8. Cash flow
Finally, look at the month as a whole: what came in, what went out, and what is left. A business can be profitable on paper and still run short of cash if customers pay slowly. A simple cash flow check tells you whether you can cover the next month’s bills before you commit to new spending.
A simple monthly routine that takes less time than you think
Monthly bookkeeping does not need to eat a whole weekend. A steady routine looks something like this:
- Gather the month’s receipts, invoices, and statements in one place.
- Record income and expenses, and file the receipts with them.
- Reconcile the bank and credit card accounts.
- Update the receivables and payables lists, and chase anything overdue.
- Check the GST balance and set aside what is owed.
- Glance at cash flow, and note anything that looks off.
Done every month, that routine usually takes a couple of hours for a small business — far less than untangling a full year of records. And if you would rather hand it over, our Accounting & Bookkeeping team can take the monthly work off your plate.
What happens when monthly bookkeeping slips
It is easy to let a month slide, especially in a busy season. The trouble is that one skipped month makes the next one harder, and by the time tax season arrives, the books need rebuilding from scratch. The usual signs are familiar: bank statements that do not match the books, invoices nobody followed up on, a GST balance nobody can explain, and a year-end bill that comes as a surprise.
None of that means the business is in trouble. It usually just means the routine broke down. The fix is the same either way — get the books current, then keep them current.
When to get help
If the books are months behind, if reconciliations never quite balance, or if bookkeeping is eating evenings that should be spent running the business, it is worth getting help. We work with small businesses across Red Deer and the surrounding area, in person at our Red Deer office or by secure video anywhere in Canada. You can read more about the city and the office on our Red Deer page.
Find ABS in Red Deer
Our Red Deer office is at 4909 50 St, Ste 200, Red Deer, AB T4N 6X2. Call us at 587-200-6402.
- Address: 4909 50 St, Ste 200, Red Deer, AB T4N 6X2
- Phone: 587-200-6402
- Hours: Monday to Friday, 8am to 9pm; Saturday, 9am to 5pm
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Talk to a bookkeeper in Red Deer
If monthly bookkeeping keeps falling to the bottom of the list, we can help. Accountable Business Services has 15+ years of experience and has served 500+ clients, with a CPA-certified team and a Canada-wide virtual option for clients who prefer to meet by video. Book a free 15-minute consultation to talk through your books — no obligation. Contact us to get started.