Ontario contractor bookkeeping guide
A monthly bookkeeping checklist for trades contractors.
This practical checklist helps an Ontario contractor gather the records, reconciliations and open questions needed for a clean monthly close. It is general record-keeping information—not tax, legal or WSIB advice.
Monthly checklist
What records should a contractor give their bookkeeper each month?
At minimum: every business account statement, sales invoices and customer payments, purchase receipts and supplier bills, payroll reports, subcontractor invoices and payments, loan or equipment-financing statements, and notes explaining unusual or personal transactions. The bookkeeper then reconciles the accounts and returns a focused list of anything still missing.
Business accounts
Collect statements for every business bank account, credit card, loan and payment processor. Confirm that the ending balance in the books matches each statement.
Sales and customer payments
Record invoices, deposits and other customer receipts. Match deposits to the work or invoices they relate to, and identify overdue receivables.
Purchases and receipts
Capture supplier invoices and receipts while the job context is still clear. Keep the source document attached or linked to the transaction wherever practical.
HST transaction records
Keep sales and purchase invoices that support the HST collected and any input tax credits claimed. Separate bookkeeping preparation from the filing decision made by the owner and tax professional.
Payroll source records
Keep payroll registers, pay records and remittance confirmations together. Reconcile payroll-related withdrawals to the provider reports or underlying records.
Subcontractor payments
Maintain each subcontractor’s legal name, address, identifier information supplied for reporting, invoices and total payments. Construction businesses should ask their accountant whether T5018 reporting applies.
WSIB-related contractor records
Retain clearance and status information where applicable and keep support for the labour and material portions shown on contractor invoices.
Owner questions
Resolve unclear transfers, cash withdrawals, personal expenses and missing documents before closing the month. Do not let an uncategorized balance become a permanent account.
Monthly close
Reconcile every agreed account, review receivables and recorded bills, scan for duplicate or unusual transactions, and save a short list of open items and upcoming dates.
Year-end handoff
Give the accountant a reconciled ledger, statements, requested source records, payroll summaries, sales-tax working records, fixed-asset details and a list of unresolved questions.
Primary sources
Confirm filing and legal requirements at the source.
Requirements can change and depend on the facts of the business. Use these official resources with your accountant or other qualified adviser: