Updated Checked by the Tax-Services.ca editorial team How we check
Bookkeeping help for a small business comes down to one question: who records every sale and expense, and how often? You can do it yourself in an hour a week, hire a bookkeeper, or split the work. Whichever you pick, the CRA says you stay responsible for the records, and you must keep them for six years.
When does a small business need bookkeeping help?
Earlier than most owners think. The usual signs are a shoebox of receipts in March, a bank balance you can’t explain, or a GST/HST return you’re afraid to file. If any of that sounds familiar, the books are already costing you time.
A few jobs tip the balance towards paid help. Payroll is one, because remitting tax, CPP and EI for staff has deadlines and penalties. Sales tax on a mix of taxable and exempt goods is another. So is a corporation, which has to file a T2 return every year even with nothing owing.
If you sell a handful of items to a few customers, a spreadsheet may be all you need. Don’t pay for what you don’t use.
What can you handle yourself in an hour a week?
More than you’d think. Picture Priya, who runs a small dog-grooming business in Winnipeg. Every Friday she does the same four things, and the whole job takes her about an hour.
- Snap a photo of every receipt from the week and drop it in a dated folder.
- Match each bank and card line to an invoice or a bill.
- Note any sale where tax was charged and any bill where tax was paid.
- Check that nothing personal went through the business account.
When tax time comes, her books are already done. A bookkeeper can take over any of those steps later, and starting with a tidy system makes the handover cheaper.
What should a bookkeeper actually do?
Ask for the tasks in writing. Firms describe the same work in different words, and a vague offer is how you end up with gaps.
| Task | Question to ask |
|---|---|
| Recording income and expenses | How often, and from which bank and card accounts? |
| Bank reconciliation | Is it monthly, and do you get a copy? |
| Sales tax returns | Who prepares and files them? |
| Payroll and remittances | Who calculates and pays the CRA? |
| Year end | Is the year-end package part of the price? |
| Access | Can you see the books at any time? |
We couldn’t confirm typical prices from an official source, and we don’t name or rank any firm here. Get two or three written quotes and compare them line by line. The cheapest one often leaves out year end.
What does payroll add to the bill?
Staff change the maths. Say you pay one employee in Ontario $3,000 every two weeks. The payroll remittance calculator shows $961.03 to send the CRA each pay period. About $732.62 of that is held back from the employee. The other $228.41 is your own share, made up of $167.94 in CPP and $60.47 in EI.
So the payroll costs you $3,228.41 for that period, not $3,000. And that’s before workers’ compensation or any other levy, which the calculator leaves out.
If you’re trying to see what the employee actually receives, use the take-home pay calculator. Late or wrong remittances are one of the things a bookkeeper earns their fee on.
How do you check a bookkeeper before you hire?
We couldn’t confirm a national licensing rule for bookkeepers, so a friendly website tells you very little about quality. Ask about experience with businesses like yours and the software they work in, then ask who owns the books if you part ways and how your files are stored and sent, since that answer shows whether they’ve thought about it.
Then ask for a reference you can phone. One real conversation beats a page of testimonials.
It also helps to ask what happens when you’re late with paperwork. Some bookkeepers chase you, some wait, and some charge extra. Knowing which kind you’re hiring saves an awkward surprise in March.
Say so early if you want tax advice as well as data entry, because recording transactions and planning around salary, dividends or a corporation are different jobs that some providers offer and others don’t. Our guide to the T2 corporate tax return covers what happens at that stage.
What mistakes cost small businesses money?
Mixing personal and business spending tops the list. It makes every expense harder to prove, and the CRA may not accept what you can’t document. Open a separate account, even if you’re a sole proprietor.
The second is thinking a bookkeeper carries the legal responsibility. The CRA states that you must make sure adequate records are kept even if a bookkeeper or accountant keeps them for you. The third is waiting until year end. Twelve months of receipts take far longer to sort than one.
Finally, don’t forget your own tax. A sole proprietor with $80,000 of net income in Ontario faces about $22,126 in income tax and CPP, according to the self-employed tax calculator. That tool leaves out EI and GST/HST, so treat it as a floor. Setting money aside monthly is easier when the books show real profit.
Where these rules come from
The six-year rule and the point about responsibility come from the CRA‘s record-keeping publication, RC188. The CRA’s keeping records page for businesses covers where to store them, for how long, and how to ask permission to destroy them early. The payroll and self-employed figures come from our 2026 calculators, which use published federal and Ontario rates. No level of government runs or endorses this site.
Frequently asked questions
How long must a business keep its records?
The CRA says six years from the end of the last tax year they relate to, unless you have permission to destroy them earlier.
Am I still responsible if a bookkeeper keeps my books?
Yes. The CRA states you must make sure adequate records are kept even when a bookkeeper or accountant keeps them for you.
Can I do my own bookkeeping?
Yes, and many very small businesses do. Payroll, several sales tax rates or a corporation are the usual reasons to hire help.
What is the difference between a bookkeeper and an accountant?
A bookkeeper records and reports transactions. An accountant usually handles tax planning, year end and structure. Ask any provider which of these they cover.
Do I need a separate business bank account?
It isn't required for a sole proprietor, but it makes expenses far easier to prove and to sort.
- 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