Spending 30–60 minutes at the end of each month on these tasks prevents the annual February scramble and ensures your CRA records are accurate all year. Here is the complete monthly checklist for Canadian freelancers.
Income: Record and Reconcile
- ☐ Issue any outstanding invoices for work completed during the month
- ☐ Record all payments received in your accounting software (Wave, FreshBooks, QuickBooks)
- ☐ Chase any overdue invoices — send a follow-up email on Day 1 after the due date
- ☐ Convert any USD/foreign payments to CAD using the Bank of Canada exchange rate on the date received. Record the CAD equivalent in your books.
- ☐ Reconcile your business bank account against your accounting records — every deposit should match a recorded invoice payment
Expenses: Capture and Categorize
- ☐ Photograph or scan all paper receipts received during the month — do not let them pile up
- ☐ Download and import your bank and credit card statements into your accounting software
- ☐ Categorize all business expenses by T2125 expense category (advertising, office expenses, professional fees, etc.)
- ☐ Record the business-use percentage for any mixed-use expenses (phone, internet, vehicle)
- ☐ Update your mileage logbook for any business vehicle trips made during the month
GST/HST: Track and Set Aside
- ☐ Verify all Canadian client invoices include the correct GST/HST rate for the client’s province
- ☐ Confirm zero-rating on all international client invoices (0% GST/HST)
- ☐ Move collected GST/HST to a separate savings account if you are not already doing this. The balance builds until your filing deadline.
- ☐ For quarterly or monthly GST/HST filers: prepare your return if this is your period-end month
Tax Savings: Set Aside Monthly
- ☐ Transfer 25–30% of net client revenue to a dedicated tax savings account
- ☐ Review your instalment schedule — check if an instalment is due this month (March 15, June 15, September 15, or December 15) and confirm payment
Admin: Brief Monthly Review
- ☐ Review year-to-date revenue against your GST/HST threshold — are you approaching $30,000?
- ☐ Review your business bank balance — is your tax reserve growing appropriately?
- ☐ Back up your accounting data — export a backup from your accounting software to cloud storage
- ☐ Review active contracts — are there any scope changes or billing updates needed?
Tools That Automate Most of This
- Wave (free): Auto-imports bank transactions, generates GST/HST reports, receipt scanning via the Wave app
- FreshBooks: Auto-categorizes recurring expenses, sends invoice reminders automatically, generates tax reports
- Dext (receipt capture): Photograph receipts with your phone, data is extracted and synced to QuickBooks or Xero automatically
Frequently Asked Questions
How long does a thorough month-end take?
For a typical freelancer with 5–15 client invoices and 20–30 expense transactions per month, a full month-end reconciliation takes 45–60 minutes using accounting software with bank feeds. The more you automate (bank feed imports, receipt scanning apps), the less manual time is needed.
What if I’m behind on bookkeeping from earlier in the year?
Catch up as soon as possible — do not wait until April. Most accounting software lets you back-enter transactions. Focus on: importing bank statements from the missing months, categorizing transactions, and ensuring all invoices issued are recorded. A few hours now prevents a much larger scramble in March and April.
Do I need a separate business bank account to do this effectively?
Yes. Without a separate business account, every transaction needs to be reviewed for personal vs business use. A dedicated business account (even a free credit union account) makes reconciliation straightforward: everything in that account is business, everything in your personal account is personal. Open one as soon as you start freelancing.