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The short version
Keep the original invoice, receipt or statement for every material entry, record who paid or was paid, categorize the transaction under a documented policy, and reconcile bank, card, merchant and POS clearing balances regularly. Close each month only after unexplained differences, duplicate records and missing evidence are resolved or assigned. Preserve corrections through review and reversal instead of silently replacing history, then export an accountant-ready package with the source documents and open questions.
1. Treat source records as evidence
A bank line proves that money moved. It does not, by itself, prove the correct account, tax treatment, customer, supplier or business purpose. Keep the original invoice, receipt, contract, statement or other source record that explains the transaction and link it to the entry under review.
For each document, preserve the original file, supplier or customer, document date, amount, currency, tax fields, payment reference and review status. A clear file name helps, but searchable structured fields and a stable link to the original are what make the record useful during month-end work or a professional review.
2. Keep the bank feed separate from the ledger
Connected bank data can reduce manual entry and make missing transactions easier to spot. Preserve the account, date, amount, description, pending or posted state, provider reference and import time. Do not overwrite a pending item with a posted item unless the relationship is traceable, and do not assume every deposit is revenue or every withdrawal is an expense.
Use cached balances for ordinary context and request a current balance only when the decision needs it and the provider supports it. Available balance can be absent or defined differently by an institution. Show the balance type, source time and any limitation instead of presenting a single number as unrestricted cash.
- Separate imported, reviewed, posted and reconciled states.
- Detect duplicates without deleting the original evidence trail.
- Record transfers as movement between accounts, not income and expense.
- Keep personal or unsupported transactions in a review queue.
3. Use a weekly capture and review routine
A short weekly routine prevents month-end from becoming a search for missing documents. Import or record the latest bank, card, POS and merchant activity, attach source records, review duplicates and clarify unusual items while the details are still familiar.
Use a documented chart of accounts and a consistent categorization policy. If the correct treatment is uncertain, leave the item visibly uncategorized with an owner and due date. Guessing creates a cleaner-looking dashboard and a less reliable ledger.
- Capture invoices, receipts and statements in the private document workspace.
- Review new bank and card activity, including pending-to-posted changes.
- Match merchant deposits to POS payout batches and their fees.
- Categorize supported items and assign uncertain items for review.
- Check overdue receivables, supplier bills and near-term cash commitments.
4. Reconcile bank, card and merchant clearing accounts
Reconciliation explains the difference between an external statement and the books at the same date. Begin with the statement ending balance, compare it with the reconciled book balance, and account for timing items such as deposits in transit or outstanding payments. An unexplained difference should be zero before the period is marked complete.
Retail businesses also need payout reconciliation. A processor deposit may combine several sales, subtract fees, include refunds and arrive on a different day. Match the payout batch to the POS and processor records rather than recording the net deposit as sales. This preserves gross sales, refunds, fees and clearing activity as separate facts.
After valid timing items are recorded, the target is $0. A remaining amount stays open with its evidence and reviewer rather than being forced into a miscellaneous account.
5. Review every uploaded invoice and receipt
A secure capture flow should validate the file type and size, detect duplicates, scan or quarantine files according to the configured security process, store the original privately and record who uploaded it. Mobile camera capture is useful only when the image is readable and the full document is present.
Text extraction can suggest supplier, date, subtotal, tax and total fields, but it can misread a digit, duplicate tax or select the wrong page. Show field-level confidence and the source page when extraction is enabled. Require a person to compare the proposed fields with the original before posting, paying or using the amount in a tax claim.
6. Close the month with visible controls
Month-end is the point where ordinary records become a reviewed reporting period. Complete the bank, card and merchant reconciliations; review accounts receivable and payable; confirm payroll and tax-related balances; investigate unusual or duplicate entries; and resolve or disclose missing documents.
After approval, lock the period according to the business's policy. A later correction should use a documented adjusting entry or reversal with the original entry, reason, author and approval preserved. Silent edits make prior reports impossible to reproduce.
| Control | Evidence | Completion test |
|---|---|---|
| Bank and card reconciliation | Statements, imported transactions and timing items | Unexplained difference is zero |
| Merchant and POS clearing | Sales batches, refunds, processor fees and deposits | Each payout is matched or assigned |
| Receivables and payables | Open invoices, bills, credits and payment status | Overdue and disputed items have an owner |
| Source documents | Original invoices, receipts and review status | Missing evidence is resolved or disclosed |
| Period approval | Checklist, reviewer and close timestamp | Reports can be reproduced from the locked records |
7. Prepare an accountant-ready package
A useful handoff includes the trial balance or ledger export, reconciliations, statements, source documents, receivable and payable listings, sales-tax working values, payroll summaries when applicable, inventory support and a list of unresolved questions. Use stable references so the reviewer can move from a figure to the entry and its evidence.
Retention depends on the record and the rules that apply to the business. The Canada Revenue Agency generally requires relevant records and supporting documents to be kept for six years from the end of the last tax year to which they relate, with exceptions. Confirm the required period and format for the business with a qualified professional before deleting source records.
How BookLoQ supports the bookkeeping routine
BookLoQ is designed to keep connected financial activity, source documents, reconciliation work, exceptions, journal controls and reporting context in one governed workspace. Plaid-connected data can support reviewed transaction imports and balance context when the connection is configured, authorized and available. Private invoice and receipt uploads can preserve source evidence and duplicate checks for human review.
BookLoQ does not turn a bank feed or extracted field into an approved accounting entry. It does not replace an accountant or tax professional, and it does not file returns, remit tax, move money or pay an invoice unless a separate feature is explicitly identified, authorized and operational. Its value is a clearer close process with visible evidence, ownership and unresolved work.
Sources and further reading
These sources support the accounting, platform or technical boundaries discussed in this guide. They are not endorsements of Vanteloq.
- Keeping recordsCanada Revenue Agency
- Input tax credits and required supporting documentsCanada Revenue Agency
- Transactions product overviewPlaid
- Balance product overviewPlaid
- Bank reconciliation in XeroXero Central
- File upload security guidanceOWASP Foundation
