Welcome back to our Monthly Financial Maintenance Series, designed to help Canadian business owners stay organized, compliant, and confident with their finances all year long.
After closing out December and wrapping up year-end tasks, January is all about momentum. This is the month to reset, clean up, and put systems in place that will make bookkeeping easier—not harder—for the rest of the year. A strong January setup helps prevent surprises at tax time, improves cash flow visibility, and sets the tone for consistent financial management.
Here’s your January bookkeeping checklist to start the year on the right financial foot.
- Confirm Your Opening Balances Are Accurate
Your January books should begin exactly where December ended.
- Verify that bank, credit card, loan, and equity balances match your finalized December reports
- Confirm retained earnings reflect the prior year’s net income
- Ensure inventory and fixed asset balances carried forward correctly
Accurate opening balances are essential—errors here can ripple through your books all year.
- Review and Refresh Your Chart of Accounts
January is the ideal time to clean up your chart of accounts.
- Remove unused or duplicate accounts
- Rename vague categories for clearer reporting
- Ensure expense accounts align with CRA reporting requirements
A streamlined chart of accounts makes monthly reconciliations faster and financial reports more meaningful.
- Set a Monthly Reconciliation Routine
Tax season may feel far away, but January is the smartest time to prepare.
- Confirm your bookkeeping is up to date through December
- Review GST/HST reporting periods and filing deadlines
- Identify deductible expenses and missing documentation
Early preparation reduces stress, avoids last-minute scrambling, and gives your accountant clean data to work with.
- Review Fixed Assets and Depreciation
Tax season may feel far away, but January is the smartest time to prepare.
- Confirm your bookkeeping is up to date through December
- Review GST/HST reporting periods and filing deadlines
- Identify deductible expenses and missing documentation
Early preparation reduces stress, avoids last-minute scrambling, and gives your accountant clean data to work with.
- Establish Clear Bookkeeping Deadlines
One of the best resolutions a business owner can make is consistency.
- Set a weekly or biweekly schedule for transaction reviews
- Choose a monthly close date
- Plan quarterly financial reviews
Clear deadlines help prevent backlog and ensure you always know where your business stands financially.
- Review Cash Flow and Payment Processes
January is the time to improve how money moves in and out of your business.
- Review accounts receivable and follow up on overdue invoices
- Set clear payment terms for customers
- Review recurring expenses and subscriptions
Strong cash flow habits early in the year help avoid pressure later on.
- Update Payroll and Remittance Settings
With the new year comes updated payroll thresholds and limits.
- Confirm CPP, EI, and income tax deduction settings
- Review employee wages, benefits, and contractor agreements
- Set reminders for payroll remittance deadlines
Accurate payroll setup ensures compliance and avoids CRA penalties.
- Create or Refresh Your Annual Budget
If you didn’t have a budget last year—or it went unused—January is your opportunity to start fresh.
- Set realistic revenue targets
- Plan for seasonal expenses
- Allocate funds for taxes, growth, and reserves
A working budget gives you a financial roadmap rather than guesswork.
- Improve Financial Document Organization
Good bookkeeping relies on good documentation.
- Set up digital folders for receipts, invoices, and statements
- Establish a consistent naming system
- Store records securely and in compliance with CRA retention rules
Staying organized now saves hours later—especially during audits or tax prep.
- Decide What to Delegate This Year
January is a great time to ask: What shouldn’t I be doing myself anymore?
- Ongoing bookkeeping
- Monthly reconciliations
- Payroll processing
- GST/HST filings
Delegating bookkeeping tasks allows you to focus on growth while ensuring your finances are accurate and compliant.
Start the Year with Clarity and Confidence
January sets the tone for the entire year. By organizing your books, committing to monthly reconciliations, and starting tax preparation early, you’re building a solid financial foundation that supports smarter decisions and long-term success.
At TNI Business Services, we help Canadian small businesses stay financially organized from January through December. Whether you need help setting up your books, managing monthly reconciliations, or preparing for tax season, our team is here to support you.
Next in the Series
Join us in February, where you will hear from our own Michael Dyck, CPA, CGA and Vice President of Finance, who will be providing essential bookkeeping tips for your small businesses during tax season!
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