GST/QST ACCOUNTING CHECKLIST FOR BUSY ENTREPRENEURS

Busy entrepreneurs juggle sales, operations, staffing, customer service, and planning — leaving little time to manage monthly GST/QST tasks. Yet sales tax errors are among the most common issues leading to penalties, refund delays, and audits. An organized GST/QST accounting system helps entrepreneurs stay compliant without adding stress or administrative overload. This checklist provides a clear, practical framework for managing GST/QST month after month, even when time is limited.

A strong accounting process ensures accurate tax remittances, smoother filings, and cleaner financial statements. Using this checklist consistently will protect your business from filing errors and tax authority scrutiny.

LEGAL AND REGULATORY FRAMEWORK

GST is administered under the Excise Tax Act and QST under the Quebec Taxation Act. Businesses registered for these taxes must:
• charge GST/QST on taxable sales
• remit tax collected by the required deadline
• claim input tax credits correctly
• maintain documentation for at least six years

In Quebec, GST and QST are filed using the FPZ-500-V combined return. Proper accounting ensures that all amounts reported match the books, POS summaries, and bank activity.

KEY COURT DECISIONS

Courts in Canada and Quebec regularly uphold reassessments when businesses cannot support their GST/QST calculations. In multiple decisions, judges emphasized that:
• invoices must show supplier GST/QST numbers
• unsupported input tax credits must be denied
• poor bookkeeping is not a valid defence
• estimates cannot replace documented transactions

These rulings make clear that entrepreneurs must maintain accurate, organized accounting to stay compliant.

WHY CRA AND REVENU QUÉBEC TARGET BUSY ENTREPRENEURS

Busy entrepreneurs often rely on manual systems or partial bookkeeping, which creates:
• inconsistent tracking of GST/QST collected
• missing receipts
• unclaimed or invalid input tax credits
• mismatched bank deposits and sales
• late or inaccurate returns

These issues signal weak controls and frequently trigger audits or refund reviews.

Industries often flagged include retail, construction, self-employed consultants, wellness services, salons, online businesses, and restaurants — all of which manage high transaction volumes or daily operational pressure.

GST/QST ACCOUNTING CHECKLIST FOR BUSY ENTREPRENEURS

1. Track daily sales
   Record daily revenue from POS systems, online platforms, or manual sales logs. Separate taxable, zero-rated, and exempt amounts.

2. Record tax collected on every transaction
   Ensure GST and QST are correctly applied. Verify your POS tax codes and invoicing templates monthly to prevent errors.

3. Save all supplier invoices
   Capture invoices using scanned documents or digital apps. Ensure invoices show GST/QST amounts and supplier registration numbers.

4. Record expenses weekly
   Avoid accumulating months of receipts. Enter expenses weekly to ensure ITCs/ITRs are captured and classified correctly.

5. Reconcile bank deposits with sales
   Match deposits to actual sales records. Identify and explain deposits that are loans, shareholder contributions, or transfers.

6. Reconcile GST/QST accounts monthly
   Confirm that tax collected and tax paid align with your general ledger balances. Investigate any discrepancies early.

7. Review cash vs. accrual reporting
   Ensure GST/QST reporting matches your method:
   • accrual basis: tax triggered on invoice date
   • special rules: tax triggered on payment received

Mixing methods creates filing errors.

8. Track credit notes and returns
   Record returns, refunds, and credits promptly. Missing adjustments cause overstated GST/QST collected.

9. Record capital purchases separately
   Assets such as equipment or computers may generate ITCs. Keep detailed documentation for each asset.

10. Organize documents for audit-readiness
    Maintain a digital folder for each month containing:
    • sales summaries
    • expense invoices
    • bank statements
    • reconciliations
    • credit notes
    • contracts
    This ensures quick retrieval if Revenu Québec requests evidence.

11. Monitor filing deadlines
    Set reminders for monthly, quarterly, or annual filing obligations. Late filings attract penalties and interest.

12. Maintain up-to-date accounting software
    Regularly update your chart of accounts, tax codes, and software version to ensure accurate tax calculations.

13. Conduct quarterly reviews
    Even if you manage tasks monthly, review all GST/QST totals quarterly to ensure everything aligns with your FPZ-500-V return.

MACKISEN STRATEGY

Mackisen CPA designs accounting systems tailored for busy entrepreneurs. We configure tax codes, automate entries, and implement clear workflows to reduce manual work. Our team can reconcile your GST/QST accounts, prepare your returns, and ensure your bookkeeping follows best practices.

We create custom monthly and quarterly checklists and train staff on tax documentation. For entrepreneurs who have fallen behind, Mackisen provides cleanup services to restore compliance and prevent penalties.

REAL CLIENT EXPERIENCE

A busy contractor worked long hours and recorded sales manually. Revenu Québec questioned discrepancies in sales vs. deposits. Mackisen reconstructed records, created an automated system, and eliminated future inconsistencies.

A wellness practitioner kept receipts in boxes and missed many ITCs. Mackisen digitized their invoices, captured missing credits, and streamlined their GST/QST filings.

An online retailer struggled with reconciling Shopify, bank deposits, and bookkeeping. Mackisen aligned all systems and designed a monthly checklist that simplified compliance.

COMMON QUESTIONS

Can I handle GST/QST myself if I’m very busy
Yes, but you need a structured system and consistent weekly habits to avoid mistakes.

Do I need accounting software
Strongly recommended. Manual spreadsheets are risky for GST/QST reporting.

What if I find missing receipts after filing
You may file adjustments or amended returns. A CPA can help.

Should I reconcile sales weekly or monthly
Weekly is ideal for high-volume businesses; monthly is acceptable for others.

Can I outsource GST/QST accounting
Yes. Many entrepreneurs delegate this to CPAs for accuracy and peace of mind.

WHY MACKISEN

With over 35 years of combined CPA experience, Mackisen CPA Montreal helps busy entrepreneurs stay compliant with GST/QST rules through efficient systems, automation, and expert oversight. We reduce administrative burden and protect your business from penalties and audit risk.