Updated Checked by the Tax-Services.ca editorial team How we check
Before you hire anyone for bookkeeping, write down what you want done each month. That list is what you’ll hold every offer up against. This page doesn’t say anything about a firm called A 1 Bookkeeping, because we couldn’t verify anything about it. What it does cover is how to pick a bookkeeper, what to hand over, and what to check once the work starts, whoever you end up with.
What should bookkeeping services cover?
At the basic level, a bookkeeper records every sale, bill and payment, matches the books to your bank statements, and keeps receipts in order. Past that, the jobs vary a lot. Some also prepare sales tax returns, run payroll or send remittances. Others stop at data entry and leave the rest to you.
Write down the jobs you want covered before you talk to anyone. If payroll is in the mix, price it as its own job. Our payroll remittance calculator shows how much has to go to the CRA each pay period, so you can see what’s at stake. For an Ontario employee paid $3,000 every two weeks, the total to remit is $961.03. That’s $521.48 of income tax, $167.94 of CPP and $43.20 of EI held from the pay, plus $167.94 of CPP and $60.47 of EI from the employer.
Picture Dana, who runs a two-chair salon in Hamilton. She doesn’t need a fancy monthly report package. She needs sales and tips recorded, the HST kept apart, and two part-time stylists paid on time. That short list tells her exactly what to ask for.
Which questions are worth asking?
You’ll learn more from a few pointed questions than from a brochure. Who will do the work, and is it the same person each month? Which software do they use, and do you keep a login? How do they handle a missing receipt, and how fast do they answer when the CRA sends a letter?
Then there are fees. Get the answer in writing, along with what’s included. We haven’t checked what bookkeepers charge, so we won’t suggest a range. Quotes vary by province, volume and the mess you start with.
| Ask | Why it matters |
|---|---|
| Who owns the books and the files? | You should be able to leave and take your records with you |
| Where are records stored? | The CRA expects records at your business or home in Canada, unless it gives written permission otherwise |
| What do you send my accountant? | A clean year end package saves time and cost later |
| What happens if a return is late? | You want to know who is responsible for the penalty |
What records do you need to keep?
The CRA’s guide to keeping records (RC188) says you must generally hold on to your records and supporting documents for six years from the end of the last tax year they relate to. That includes electronic records from accounting software, and the CRA wants them kept in a readable electronic format even if you also have paper copies.
Your bookkeeper can maintain the files, but the legal duty is yours. If they lose a year of receipts, the CRA will still look at you.
A simple month of work, with numbers
Take one sale: you invoice a client in Ontario $2,000 before tax. HST at 13% adds $260, so the client owes $2,260. Your bookkeeper should record the $2,000 as revenue and the $260 as tax you’re holding for the government, not as income. Try it yourself in the GST and HST calculator, which also works backwards from a price that already includes tax. In Alberta the same invoice carries $100 of GST and totals $2,100.
Keeping the tax separate is the part beginners get wrong, and it’s the first thing to check in a sample of a bookkeeper’s work.
Profit is the next figure. The profit margin calculator turns sales and costs into a percentage you can compare from month to month. If the books show a jump or a dip you can’t explain, ask why.
What should you hand over on day one?
A bookkeeper can only be as good as what you give them. A short starter pile saves a few bucks and a lot of back and forth:
- Bank and credit card statements for the whole period, including any personal card you’ve used for the business.
- Last year’s return and year end financial statements, if you had them.
- Sales invoices and supplier bills, paid or not.
- Payroll records and your CRA remittance history, if you have staff.
- Your GST/HST account details and the dates of your filing periods.
A read-only bank login, or downloaded statements, is plenty for most jobs. Keep payment approval to yourself.
What do the books feed into?
Once the year is closed, the numbers flow into a tax return. A sole proprietor can test the result with the self-employed tax calculator, though it leaves out EI and its deductions don’t lower CPP, so it won’t match a final return. A corporation can try the corporate tax calculator.
The split between recording and reporting is covered in bookkeeping, accounting and accountancy, which also explains when you need more than a bookkeeper.
Do you need a bookkeeper or an accountant?
It depends on what’s piling up. If the pain is receipts, reconciling and chasing invoices, a bookkeeper fits. If the pain is the year end return, planning how to pay yourself or a letter from the CRA about a past year, you want an accountant. Many small businesses use both: the bookkeeper keeps the books current all year, and the accountant uses them at tax time.
What are the warning signs?
Be wary of anyone who wants sole control of your bank login, won’t give you copies of your files, or promises a specific tax saving before seeing your records. And treat any claim of a link with the CRA or a government as a red flag.
Search reviews if you like, but treat them as clues rather than proof. We haven’t checked any company’s ratings or claims.
How we checked the figures
The six year retention period and the record location rule come from the CRA‘s guidance on keeping records. The payroll figures come from our payroll remittance calculator using 2026 CPP, EI and tax data, and the sales tax figures from our GST and HST calculator using the 2026 provincial rates. This site is independent. It isn’t connected to the CRA or any government, and it doesn’t sell bookkeeping.
Frequently asked questions
What does a bookkeeper do?
A bookkeeper records sales, bills and payments, matches them to bank statements and keeps receipts in order. Some also handle sales tax returns and payroll remittances.
How long do I have to keep business records?
The CRA says generally six years from the end of the last tax year the records relate to, including electronic records.
Can a bookkeeper keep my records outside Canada?
The CRA expects records at your business or home in Canada unless it gives written permission. Records accessed from abroad may not count as kept in Canada.
Do I still need an accountant if I have a bookkeeper?
Often yes, for the year end and the tax return. What each person is allowed to do depends on the work, so ask about it before you sign.
How much do bookkeeping services cost?
We couldn't confirm typical fees from an official source, so we don't quote any. Ask for a written quote that lists what's included.
- Self-employed taxes in Canada: income, CPP and GST
How tax works when you are self-employed in Canada: reporting income and expenses, paying both halves of CPP, instalments and when to register for GST