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Bookkeeping services record your sales, bills and payroll so your tax returns can be built from clean numbers. Hiring them doesn’t move the legal burden. The CRA says that contracting out record keeping to a bookkeeper or a cloud provider doesn’t relieve you of your duties, and you generally keep records for six years after the tax year they cover.
What do bookkeeping services actually do?
At the plain end, someone enters transactions, matches them to bank statements and keeps receipts sorted. Add-ons vary by provider: payroll runs, GST/HST returns, and monthly reports. Tax filing and accounting advice sit a step above, and many bookkeepers don’t offer them.
We can’t tell you what any provider charges. Prices differ by volume and scope, and we couldn’t confirm any figure, so we’ve left them out. Get a written quote that lists exactly what’s included.
Do you need to hire anyone?
Maybe not. A sole proprietor with one bank account and a few dozen transactions a month can do the job with a spreadsheet and a Saturday morning. The moment you have staff, sales tax to remit, or a corporation, the work gets bigger and the cost of mistakes rises.
Ask yourself a blunt question. Are you behind on your books? If yes, the hire pays for itself faster than any software will, since late filing brings its own trouble with the CRA.
| Record rule | What the CRA says |
|---|---|
| Normal retention period | 6 years from the end of the last tax year the records relate to |
| Property and share records | Keep indefinitely |
| Dissolved corporation | 2 years after dissolution |
| Where to keep them | Your place of business or home in Canada, unless the CRA agrees otherwise |
| Destroying records early | Needs CRA permission (Form T137) |
What should you ask before you sign?
Start with access. Who owns the files, and can you export them in a readable format if you leave? Records held on a system outside Canada and viewed from here don’t count as kept in Canada, per the CRA, so ask where the data sits.
Then ask about scope. Does the fee cover payroll remittances, or only entry? Who files the GST/HST returns, and who is blamed for a late one? Ask how they handle a missing receipt, how often you’ll get reports, and what happens when the person handling your file leaves.
References are worth a phone call. We can’t rank or vouch for firms, and any list claiming a top provider is opinion rather than something we could verify.
What does clean bookkeeping change for tax?
It changes the numbers you start from. A self-employed person with good records claims expenses with confidence, and the self-employed tax calculator then gives a better estimate. A corporation with tidy books gets a sound number to feed the corporate tax calculator.
Employers can check what should be sent to the CRA with the payroll remittance calculator, and prices with sales tax can be split using the GST/HST calculator. Margins are easier to judge once the costs are recorded, and the profit margin calculator does the arithmetic.
Common mistakes
Mixing personal and business spending is the classic. So is keeping receipts in a shoebox for a year. And handing everything over at filing time, then finding out in April that half the bank lines have no explanation.
Another trap is assuming the provider carries the risk. They don’t, at least not toward the CRA. If a return is wrong, it’s still your return.
Where the numbers come from
The retention periods and record rules come from CRA pages on keeping records, including where to keep them and when you can destroy them. We checked those in September 2026. This site isn’t connected to the CRA, and we made no attempt to assess any provider.
Frequently asked questions
How long must I keep business records?
Generally six years from the end of the last tax year they relate to. Some records, such as property and share records, are kept indefinitely.
Am I still responsible if a bookkeeper makes a mistake?
Yes. The CRA says contracting out record keeping to a third party doesn't relieve you of your responsibilities.
Can I store records outside Canada?
The CRA sets conditions. Records kept abroad and viewed from Canada are not treated as kept in Canada, so ask about it first.
Do I need a bookkeeper or an accountant?
Bookkeepers keep the records current. Tax filing and advice are separate services, so ask which ones a provider offers.
What does bookkeeping cost?
We couldn't confirm typical fees. Get a written quote that lists what is included.
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Information only. This page is general information, not tax, legal or accounting advice. Tax-Services.ca is an independent publisher: we don't prepare or file tax returns or offer tax services, and we have no connection with the CRA, Revenu Québec, any government or any company named on this page. Check the figures that matter with an official source or a qualified professional.