Reconcile Bookkeeping and Expense Records

A Critical Step for Accurate Tax Filing in Canada

Reconciling your bookkeeping and expense records is one of the most important steps in preparing your tax return. Incomplete or inaccurate records can lead to missed deductions, CRA reassessments, penalties, or audits—especially for self-employed individuals and business owners.

At Tiki Tax, we help clients across Canada reconcile their financial records accurately so they can file with confidence and stay CRA-compliant.

What Does It Mean to Reconcile Bookkeeping and Expenses?

Bookkeeping reconciliation is the process of matching your financial records—such as bank statements, credit card transactions, and receipts—with what’s recorded in your accounting system.

This ensures:

• All income is properly reported

• All deductible expenses are supported

• No duplicate or missing entries exist

CRA expects your records to be complete, accurate, and well-documented.

Why Reconciliation Matters for Taxes

✔️ Ensures correct income reporting
✔️ Maximizes legitimate expense deductions
✔️ Reduces CRA audit and review risk
✔️ Prevents filing delays and reassessments

Without proper reconciliation, you may:

• Overpay taxes by missing deductions

• Underreport income and trigger penalties

• Struggle to support claims during a CRA audit

Common Expense Records That Need Reconciliation

• Bank and credit card statements

• Business receipts and invoices

• Vehicle and mileage logs

• Home office expenses

• Payroll and subcontractor payments

• GST/HST collected and paid

📌 Every expense claimed must be reasonable, necessary, and supported.

When Should You Reconcile Your Records?

Ideally:

• Monthly for ongoing businesses

• Quarterly for GST/HST registrants

• Before tax filing at minimum

Year-end reconciliation helps catch errors before filing and avoids costly corrections later.

Common Reconciliation Mistakes to Avoid

❌ Missing receipts
❌ Mixing personal and business expenses
❌ Claiming non-deductible expenses
❌ Duplicate entries
❌ Inconsistent records vs. bank statements

These mistakes increase CRA scrutiny and audit risk.

How Tiki Tax Helps with Bookkeeping Reconciliation

✔️ Review and clean up bookkeeping records
✔️ Match expenses with proper documentation
✔️ Identify deductible vs. non-deductible expenses
✔️ Ensure GST/HST accuracy
✔️ Prepare audit-ready records

We support:

• Small businesses

• Self-employed professionals

• Corporations and sole proprietors

Clean Records Lead to Better Tax Results

Reconciling bookkeeping and expense records isn’t just about compliance—it’s about saving money and reducing stress.

👉 Contact Tiki Tax today to get your records reconciled and your taxes filed the right way.

🌐 Website: https://www.tikitax.ca/