MONTHLY BOOKKEEPING CHECKLIST: GST/QST TASKS TO DO REGULARLY

Monthly bookkeeping is one of the most powerful habits a Quebec business can develop to stay compliant with GST and QST rules. Even if you file quarterly or annually, performing monthly GST/QST tasks ensures accurate reporting, stronger cash flow planning, and audit-ready documentation. Many businesses only think about GST/QST at filing time — but by then, missing invoices, incorrect tax codes, and unreconciled accounts often lead to mistakes that are costly to fix. This monthly bookkeeping checklist outlines the tasks you should complete every month to keep your GST/QST accounts accurate and your business fully compliant.

Monthly routines prevent filing errors, maintain organized records, and reduce the stress of quarterly and annual reporting.

LEGAL AND REGULATORY FRAMEWORK

GST/QST bookkeeping requirements are governed by the Excise Tax Act and the Quebec Taxation Act. Businesses must:
• track tax collected on taxable supplies
• record input tax credits and refunds
• maintain supporting documentation
• reconcile tax accounts regularly
• file on time based on their assigned frequency

Monthly bookkeeping ensures compliance with these laws by keeping your records current and avoiding end-of-period mistakes.

KEY COURT DECISIONS

Courts in Quebec and across Canada have consistently emphasized that businesses must maintain accurate, timely, and complete records for GST/QST. In several decisions, judges upheld reassessments where taxpayers:
• waited until filing time to reconcile accounts
• claimed ITCs without supporting documentation
• relied on incomplete or estimated bookkeeping
• allowed months of unreconciled activity

Courts also stressed that poor bookkeeping is not an acceptable excuse for errors or missing documentation.

WHY REVENU QUÉBEC TARGETS MONTHLY BOOKKEEPING GAPS

Revenue Québec frequently reviews businesses with:
• irregular GST/QST totals
• inconsistent year-over-year patterns
• large refund claims
• missing receipts
• cash-based operations
• delayed invoice entry
• poor reconciliation habits

Monthly bookkeeping eliminates these red flags and reduces audit likelihood.

MONTHLY BOOKKEEPING CHECKLIST: GST/QST TASKS TO DO REGULARLY

Use this checklist to create a monthly habit that keeps your sales tax records clean and compliant.

1. Record all sales for the month
   Collect and enter revenue from:
   • POS systems
   • online platforms (Shopify, Amazon, etc.)
   • manual invoices
   Ensure you categorize taxable, zero-rated, and exempt sales separately.

2. Confirm GST/QST collected
   Run a monthly tax summary to verify that GST and QST were applied correctly. Identify transactions where tax codes were overridden or missing.

3. Enter all supplier invoices
   Enter every business-related purchase into your accounting system. Confirm that invoices include:
   • supplier GST/QST registration numbers
   • invoice date and number
   • tax amounts shown separately
   • business purpose

4. Capture digital receipts
   Use receipt-capture apps or email storage to save digital supplier invoices. Missing receipts reduce input tax credits.

5. Reconcile bank deposits with sales
   Match each bank deposit to sales transactions. Flag deposits that are loans, transfers, or refunds, not revenue.

6. Reconcile GST/QST collected accounts
   Confirm that your general ledger balances match the GST/QST collected amounts in your sales summaries.

7. Reconcile GST/QST paid (ITCs/ITRs)
   Ensure all eligible input tax credits appear in your bookkeeping system and match the supporting documentation.

8. Record credit notes and customer refunds
   Enter adjustments promptly so GST/QST collected is reduced correctly in your next return.

9. Review recurring monthly expenses
   Verify that subscriptions, utilities, telecom charges, and software payments were recorded accurately and include tax amounts.

10. Identify missing or late invoices
    Prepare a list of missing receipts. Contact vendors early instead of waiting until filing time.

11. Analyze unusual items
    Investigate:
    • negative invoices
    • manual tax overrides
    • large variances in sales or expenses
    • bank deposits that do not reconcile

12. Update cash flow forecasts
    Calculate expected GST/QST payments for the next period so cash flow is not disrupted.

13. Review place-of-supply rules
    If you sell outside Quebec, ensure that HST/GST/QST rules were applied correctly on interprovincial and international transactions.

14. Update your monthly GST/QST folder
    Store:
    • sales reports
    • expense invoices
    • reconciliations
    • bank statements
    • credit notes
    • supporting documentation

15. Prepare for quarterly or annual filing
    If you are a quarterly or annual filer, monthly bookkeeping greatly reduces the workload when preparing the FPZ-500-V return.

MACKISEN STRATEGY

Mackisen CPA helps businesses establish efficient monthly bookkeeping systems that integrate GST/QST compliance. We configure tax codes, reconcile accounts, set up automated processes, and establish documentation routines. Our team also offers monthly bookkeeping services, ensuring your business stays compliant even when you are busy running operations.

We provide customized monthly checklists and audit-ready documentation templates to maintain seamless compliance.

REAL CLIENT EXPERIENCE

A Montreal café struggled with rushed quarterly filings. Mackisen implemented a monthly bookkeeping system, reducing filing errors and improving cash flow.

A consulting business frequently missed ITCs because invoices were not recorded monthly. Mackisen introduced a digital receipt system and monthly review process, significantly increasing recovered credits.

An e-commerce startup had inconsistent sales and tax coding. Mackisen aligned Shopify, bank deposits, and accounting software, resolving monthly discrepancies.

COMMON QUESTIONS

Do I need to do monthly GST/QST bookkeeping if I file yearly
Yes. Annual filers face the highest risk of errors if not reconciling monthly.

Can I automate monthly bookkeeping
Yes. Software like QuickBooks, Xero, and cloud receipt apps simplify entry and reconciliation.

What if I miss a month
Catch up as soon as possible. Missing months cause filing delays and audit exposure.

Should I reconcile tax accounts monthly
Absolutely. Monthly reconciliation ensures accuracy and prevents cumulative errors.

Can monthly bookkeeping reduce audits
Yes. Clean, consistent monthly records significantly reduce red flags.

WHY MACKISEN

With more than 35 years of combined CPA experience, Mackisen CPA Montreal helps businesses streamline monthly GST/QST bookkeeping routines. Our structured systems prevent errors, improve accuracy, and keep your company fully compliant year-round.