Most small corporations in Canada can get by without a full invoicing workflow in QuickBooks during the early stages. But there is a point where not using AR stops being “simple” and starts costing you time, accuracy, and missed revenue.

You don’t need AR for the CRA —
you need it once running your business without it becomes difficult.

Here are the signs your corporation is big enough that AR becomes useful instead of administrative:

You should start using AR when:

• You have multiple clients owing you money at the same time
• You do not know who is overdue without digging through accounts
• You need a clear separation between revenue earned and revenue collected
• You are offering payment terms (Net-15, Net-30, etc.)
• You cannot easily track follow-ups or late payments
• You need better cash flow visibility
• You are growing or preparing for financing, lending, or hiring

At this point, AR is no longer a “feature.”
It becomes infrastructure — the system that ensures you actually collect what you are owed.

You do not need AR when:

• You are paid on the spot or immediately after service
• You rarely issue invoices after the fact
• The vast majority of clients pay before or at delivery
• Any outstanding payments are small, occasional, or easy to track manually

In that stage, simplicity is still the better model.

The crossover point

The moment you find yourself asking,
“Who still owes me money?”
you have reached the point where AR becomes worth implementing.

Not for compliance.
For cash flow.

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