Bookkeeping
Cash basis bookkeeping
Cash-basis books for Canadian owners who want simple records that match the bank, kept in QuickBooks Online, Xero or Sage 50 by Finbryn. Most Canadian businesses still report to CRA on an accrual basis, farming and fishing being the main exception, so we tell you early which basis your filing actually needs.
Bank reconciliation summary
Illustrative client · August 2026
CAD
| Account | Difference | Status | ||
|---|---|---|---|---|
| Operating account··4821 | 184,220.16 | 184,220.16 | 0.00 | Reconciled |
| Reserve account··0937 | 60,000.00 | 60,000.00 | 0.00 | Reconciled |
| Company card··1006 | (12,418.52) | (12,418.52) | 0.00 | Reconciled |
| Card processor clearing | 8,905.40 | 8,905.40 | 0.00 | Reconciled |
| Payroll clearing | 0.00 | 0.00 | 0.00 | Reconciled |
Last weekly runFri, Aug 28, every account agreed to its statement.
Two open itemsTwo card receipts requested from you, marked on the card account until they arrive.
Illustrative. An example of the document, not a client's figures.
Simple books, with an eye on CRA
Some owners want books that mirror the bank balance: income booked when the money lands, expenses booked when the card or cheque clears. We can keep books that way for internal use, reconciled every month against your accounts.
Where cash basis and CRA part ways
Most Canadian businesses, outside farming and fishing, are required to report business income to CRA on an accrual basis regardless of how the day-to-day books are kept. That means receivables and payables at year end still have to be captured somewhere, even if the monthly view stays cash-based. We flag this during onboarding rather than let it surface for the first time at tax season.
What you get each month
A cash-basis profit and loss statement and balance sheet, every bank and card account reconciled, and GST or HST tracked on its own line the same way it would be under accrual. Simple enough for a lender or your tax preparer to read at a glance.
Moving to accrual
When a lender, an investor or your own preparer needs accrual figures, we convert the existing cash-basis history rather than starting the ledger over, so prior periods still compare cleanly.
Software and delivery
Work happens inside QuickBooks Online, Xero or Sage 50, reviewed by a senior reviewer before it reaches you, with billing terms set out in your engagement letter. See pricing for the published rate, and accrual bookkeeping if that fits your business better once it grows.
Questions
Frequently asked questions: Cash basis bookkeeping
Is cash-basis bookkeeping enough for my CRA filing?
Usually not on its own. Most Canadian businesses must report to CRA on an accrual basis, so we keep a record of receivables and payables even while your monthly view stays cash-based.
Are there businesses that can use cash basis for tax too?
Farming and fishing businesses have a recognized cash method option under the Income Tax Act. Outside those, plan on accrual for the return itself.
Can you switch us to accrual later?
Yes, and we carry your prior cash-basis history into the accrual books so year-over-year comparisons still hold up.
What exactly is included in cash basis bookkeeping?
Income recorded when received, expenses recorded when paid, and bank and card accounts reconciled each month. This work runs inside QuickBooks Online or Xero, whichever your business already has in place, and it rolls into your regular monthly close rather than sitting off to the side as a separate, unreconciled process.
What happens to our cash basis bookkeeping records if we switch providers?
Everything stays inside your own QuickBooks Online or Xero account, so the full history transfers with the subscription, not with Finbryn. You can hand cash basis bookkeeping to another provider or bring it in-house at any point without losing a reconciliation or having to rebuild the file first.
Is cash basis allowed for my business?
Most small businesses can choose cash basis. Certain entities with inventory or above a revenue threshold may need to use accrual instead; we flag that during onboarding.
Can I switch to accrual later?
Yes. We convert existing cash-basis books to accrual when a lender, investor or your own growth calls for it.
How is cash basis bookkeeping priced?
Pricing for cash basis bookkeeping depends on your transaction volume, the software you use, and how much cleanup is needed before ongoing work starts. Current ranges are published on the pricing page, and your exact fee is confirmed in writing before anything begins.
What software works with cash basis bookkeeping?
Cash basis bookkeeping runs inside QuickBooks Online or Xero, whichever you already use. If you are not yet set up in either, we can configure a file in your name so you keep ownership of it once the engagement is under way.
Related services
- BookkeepingMonthly bookkeepingOngoing monthly bookkeeping: transactions sorted into categories, accounts reconciled and month-end reports delivered in the software you already use.
- BookkeepingAccrual basis bookkeepingBooks kept on an accrual basis, matching income and expenses to the period they were earned or incurred, so reports reflect the real state of the business.
Industries
Next step
Talk to the team that would run your books
A short call covers your setup, your software and what a first month would look like. You get a written scope and price after it.