Bookkeeping includes the analysis, review and organizing of a corporation’s financial information. This information is compiled into a summary of income and expenses (income statement) and a summary of a corporation’s financial position for a period end (balance sheet). In order to complete corporate tax returns and be compliant with the CRA, corporations are required to do their bookkeeping and prepare financial statements.

There are important benefits to having bookkeeping and financial statements completed:

• Reviewing financial performance on a periodic basis
• Make important operational decisions such as hiring staff or consultants, marketing and advertising projects, or future compensation
• Help to obtain personal and commercial lending requirements, such as credit cards, lines of credit, business loans and mortgages

In order to do the bookkeeping and financial statements, a corporation needs to review and organize all necessary documents, use suitable accounting software for their specific needs, and ensure that the financial items have been appropriately classified and recorded in bookkeeping and financial statements.