A bookkeeper records and organizes your day-to-day financial transactions — things like sales, expenses, payroll, sales taxes, and bank reconciliations. An accountant interprets that financial data to prepare tax returns and financial statements, and typically holds a CPA designation. Most growing small businesses rely on both, usually working together: the bookkeeper keeps the numbers current, and the accountant uses them for tax planning and strategy.
What Does a Bookkeeper Do?
A bookkeeper handles the ongoing, day-to-day financial tasks that keep your business’s records accurate and current. That typically includes:
- Recording sales, expenses, and other transactions
- Reconciling bank and credit card accounts
- Managing accounts payable and accounts receivable
- Processing payroll and remittances
- Preparing basic financial reports, like a profit and loss statement or balance sheet
In Canada, there’s no legal requirement for a bookkeeper to hold a specific credential, though Oakton FC still holds the industry standard role as certified QuickBooks ProAdvisors. Bookkeeping work is typically ongoing — weekly or monthly — rather than seasonal.
What Does an Accountant Do?
An accountant works at a higher level, using the financial data a bookkeeper maintains to guide decisions and meet compliance obligations. That typically includes:
- Preparing and filing corporate or personal tax returns
- Preparing formal financial statements
- Tax planning and forecasting
- Advising on business structure (for example, incorporating)
Unlike bookkeeping, the title “accountant” isn’t regulated on its own, but the Chartered Professional Accountant (CPA) designation is — it requires formal education, examinations, and ongoing professional standards. Most businesses only need an accountant periodically: at tax time, year-end, or for major financial decisions.
Bookkeeper vs. Accountant: Key Differences at a Glance
| Bookkeeper | Accountant | |
| Main focus | Recording day-to-day transactions | Interpreting and analyzing financial data |
| Typical tasks | Bank reconciliations, payroll, accounts payable/receivable, data entry | Tax filing, financial statements, forecasting, strategic advice |
| Certification | Not legally required in Canada; many hold software certifications (e.g., QuickBooks ProAdvisor) | CPA designation, a regulated credential |
| How often you need them | Ongoing — weekly or monthly | Periodic — tax season, year-end, major decisions |
| Typical cost | Lower hourly/monthly rate | Higher hourly rate, reflecting the designation |
| Best for | Keeping daily finances organized and accurate | Tax strategy, compliance, and big-picture decisions |
Do You Need a Bookkeeper, an Accountant, or Both?
Signs you need a bookkeeper
- Your transactions, receipts, or invoices are piling up unrecorded
- You’re not sure what your accounts payable or receivable actually look like right now
- You need payroll run accurately and on time
- Your accountant is charging you to sort through disorganized records at tax time
- You’re being audited by the CRA
Signs you need an accountant
- You need to file corporate or complex tax returns
- You’re deciding whether to incorporate or restructure
- You need financial statements for a loan application or investor
Many small businesses use both, and it’s often the more cost-effective route: a bookkeeper keeps your books accurate and current throughout the year, so your accountant isn’t billing higher hourly rates to untangle a year’s worth of transactions before they can even start on your taxes.
Frequently Asked Questions
Can a bookkeeper also do my taxes?
A bookkeeper can prepare the financial records your tax return is based on, and some bookkeepers file simple returns. However, more complex corporate tax filings, tax planning, and CRA representation generally call for an accountant, particularly one with a CPA designation.
Is a bookkeeper cheaper than an accountant?
Generally, yes. Bookkeeping is typically billed at a lower hourly or monthly rate than accounting services, reflecting the difference in scope and the accountant’s professional designation.
Do I need both a bookkeeper and an accountant?
Most growing small businesses benefit from both: a bookkeeper for ongoing financial organization, and an accountant for tax filing, planning, and higher-level advice.
Can I switch from an accountant to a bookkeeper to save money?
Only for the tasks that fall within bookkeeping. A bookkeeper can take routine data entry and reconciliation off an accountant’s plate, which often reduces your overall accounting bill, but a bookkeeper can’t replace an accountant for tax filing or CRA-related work.
Get Your Books in Order
If you’re spending more time chasing receipts than running your business, outsourced bookkeeping keeps your finances accurate and current year-round — and makes tax season easier for your accountant, too.