It's never fun having to manage someone, especially when it's in a coaching or corrective manner, but you're doing everyone a disservice by not doing it.
Start a weekly one on one of sorts. Use the quarterly review as a guideline if you'd like. The idea here is to come up with some kind of consistent improvement plan. The first time out, outline your specific expectations. Be it paperwork, behavioral, logistical, organizational, etc. Example: "Mary is to create a spreadsheet daily of sales and expenses that is to be published on my desk no later than 5pm. And it is to have the new TPS cover sheet attached." 2 or 3 things should suffice at first. Put it in writing, email anyone else who may need to be aware of anything, and track it daily. Usually, things of that nature (compliance things especially) can be verified in just a few moments of your time.
Then the next week, follow up what results you've tracked (example: "Mary did the spreadsheet M,T,W,and F, but was tardy handing it in on Thurs"), and manage that. You've already set the expectation, it's her job to follow it. It's your job to follow up. It's ok to let her know that Thursday's performance was not acceptable. That's HER job, and you are affected if she's not doing it. And now you have a paper trail, documentation, in case it escallates. If she's choosing not to do her spreadsheet, you can document it and discipline accordingly. Maybe she's just not the spreadsheet type. It's ok, she's not a bad person, you're not a bad person, it's just not the right job for her and she needs to move along.
Keep it positive, and it's every bit as important to track for recognition as it is for coaching and management. Now, when it comes time for Mary's review, you can say "She is a 4 - never missed one day with her spreadsheet", or "She is a 2, she's missed her spreadsheet 3 days in the past month" or something to that effect.
The trick is to remember a few things. One, people WANT to be held accountable. It justifies what they do day in and day out. Another is never take it personally. It's a business, treat it as such. Probably the biggest is FOLLOW UP is KEY. The last is keep it positive.
Good luck!