Bookkeeping Options

Full Accrual
Moderate Approach
Budget Option

Method:

This is full accrual bookkeeping. We follow up and ask for backup for all items and only post transactions with sufficient documentation. GST and/or PST recorded as per receipts.

Benefits:

  • Very high level of accuracy
  • Best suited for clients who want to monitor and review their financial information.
  • Suitable as a basis for Part-time CFO services.

Drawbacks:

  • Bookkeeping will take longer to complete
  • More requests for information.
  • You will need to provide documentation for the majority of the transactions.



Method:

We follow up and ask for backup for any items over a set amount as per your preference.  GST and PST is recorded as per receipts provided.Transactions are coded directly from bank and or credit card statements for transactions less than your specified preference.

Benefits:

  • Can be completed relatively quickly
  • More accurate
  • Better suited for clients who want to monitor and review their financial information.
  • Having backup for higher value items will result in faster response to CRA audits and lower costs to you.

Drawbacks:

  • Lose some details in the bookkeeping process.
  • May not provide enough details to fully support CRA requests for information as lower value transactions are coded as per ‘budget’ option.
  • Extra fees to support CRA audit

Method:

Transactions are coded directly from bank and or credit card statements.  This can be considered to be a ‘modified cash’ method of accounting with accruals done at year end.  QBO must be connected to bank feeds for this option.

Even if you don’t provide us with your receipts, you are still required to keep them in case CRA wants to see them.

Benefits:

  • Can be completed very quickly

Drawbacks:

  • Lose some details in the bookkeeping process.
  • Not suitable for client interested in monthly financials.
  • May not provide enough details to fully support CRA requests for information
  • GST or PST amounts are calculated based on typical transactions, individual transactions may have different amounts than estimated.
  • Extra fees to support a CRA audit.

The above packages are guidelines to assist you in determining the appropriate level of bookkeeping for your business. 
Please talk to us to find out the benefits and drawbacks of each option.

This is an example of the coding assumptions we would use with the ‘Basic’.  The list below shows the Supplier, the account we would code the transaction to, and if we would record GST and or PST on the transaction.

  • Shaw, Telus, Rogers — telecommunication, GST & PST(BC)
  • Staples – Office Supplies, GST & PST(BC)
  • Home Depot, Rona – Supplies, GST & PST (BC)
  • Shell, Esso – Fuel, GST
  • Starbucks, Timmies, MacDonalds etc, Meals and Entertainment, GST @ 50%
  • Sit down restaurants, Meals and Entertainment, GST 50%, 20% Tip no GST.
  • Foreign purchases, ie: Amazon, FB, Assume no GST paid.
  • GST and PST can be calculated by simple math.
    For example (in BC).
    You purchase a box of paper from Staples.
    The paper is $100 plus 5% GST and 7% PST. You pay $112.
    We see a transaction on your bank statement for $112 from Staples.  We code this to ‘Office Supplies’ with $5 GST and $7 PST.

    The calculation looks like this:

    Total Amount/1.12 *.05 = GST.
    Total Amount/1.12 *.07 = PST.

    $112/1.12=100*.05 = $5 GST
    $112/1.12=100*.07 = $7 PST.


    This same calculation can be used for HST except the number will be 12% or 13% depending on province.