Updated Checked by the Tax-Services.ca editorial team How we check
Bookkeeping services record your sales, expenses, payroll and sales tax so a tax return can be filed from real numbers. The CRA says you must keep those records for six years from the end of the last tax year they relate to, and hiring help doesn’t move that duty off your desk.
What do bookkeeping services actually cover?
The core job is sorting money into categories. A bookkeeper matches bank and card transactions to receipts, records invoices you send and bills you owe, and checks that the books agree with the bank at month end. Many also prepare GST/HST returns and payroll remittances if you ask for them in writing.
What they don’t usually do is advise on structure or file your income tax return. That’s accountant work. If you’re unsure where the line sits, ask the person to list what’s in and what’s out before you pay for a month.
Think of Nadia, who runs a small bakery in Moncton. Her bookkeeper turns a pile of receipts and a bank file into a tidy list of sales and costs each month. Her accountant then uses that list in the spring to prepare the return. Two jobs, two people, and the second goes faster because the first was done well.
Which records does the CRA expect you to keep?
The CRA’s definition is wide: anything with financial information on it, from ledgers and journals to correspondence and returns. Here’s what its record pages say; the main page is keeping records, and it points to separate pages on where and how long to keep them and on asking permission to destroy them early.
| Question | What the CRA says |
|---|---|
| How long | Six years from the end of the last tax year the records relate to |
| Where | At your place of business or home in Canada, unless the CRA allows otherwise in writing |
| Format | Paper, electronic or both, including accounting and point of sale systems |
| Destroying early | Needs written permission, through Form T137 or a letter to your tax services office |
| Who is answerable | You, even if a bookkeeper or accountant keeps the books |
What does a missed expense cost you?
Take a sole proprietor in Ontario who nets $80,000. The self-employed tax calculator shows $13,233.57 of income tax and $8,892.90 of CPP, so $22,126.47 in all. Now say the books miss $2,000 of real expenses. Net income reads $82,000, and the bill becomes $22,832.03.
That’s $705.56 paid on money you never kept. The tool leaves out EI and GST/HST, and it uses 2026 figures, so treat the result as a size check, not a return. Over a few years, a habit of losing small receipts adds up to a few hundred bucks, which is a decent price for a shoebox that never got sorted.
Do you need a bookkeeper or just software?
Depends what’s in the business. A sole proprietor with one income stream and a few dozen transactions a month can often manage a spreadsheet or an app. Add employees, GST/HST returns or several income streams, and the hours pile up.
Payroll is where mistakes get expensive. For one employee paid $2,000 a month in Ontario, the payroll remittance calculator shows $391.82 to send the CRA each month. Regular remitters usually pay by the 15th of the next month, and late payments carry penalties from 3% to 10% depending on how late.
Sales tax has its own rhythm. You must register once taxable sales pass $30,000 over four consecutive calendar quarters. On $25,000 of sales at Ontario’s 13% rate, the GST/HST calculator shows $3,250 of HST collected for the CRA, not for you.
What should you ask before you sign?
Get the scope on paper. Ask who owns the files if you part ways, how often the books are closed, and whether the person files returns or only prepares them. Ask which CRA authorization they’d need, since the CRA lets you pick how much a representative can see or change in your account.
Fees for bookkeeping are a business expense you can generally claim. We didn’t confirm any price ranges, so we don’t quote them. Get two written quotes and compare what each includes.
Can you keep the books yourself?
Yes, plenty of people do, especially in the first year. The rules for what you keep are the same whether you or a bookkeeper does it. What changes is your time. A simple routine helps: one business bank account, one card for business costs, and a fixed hour every week to match receipts. If that hour keeps getting skipped, that’s your sign to hand the job over.
Where do bookkeeping mistakes come from?
Mostly from habits, not maths. Mixing personal and business spending is the big one, and it makes every later step slower. Losing receipts is next. Then there’s waiting until March to sort twelve months at once, which is when errors slip through.
One more trap: assuming the bookkeeper is watching your deadlines. Unless the agreement says so, they aren’t.
What this page is based on
Record keeping rules and the payroll and GST/HST figures come from the Canada Revenue Agency’s business pages, checked in September 2026. Tax amounts come from this site’s calculators, which use 2026 rates. No government body has reviewed or endorsed what you read here. Rates and thresholds can change, so check the official page before you rely on a date.
Frequently asked questions
How long do I keep business records?
Six years from the end of the last tax year they relate to, unless the CRA gives written permission to destroy them earlier.
Can a bookkeeper file my tax return?
Some prepare returns, but the job is mainly recording and reconciling. Ask for the scope in writing, and remember the responsibility for the records stays with you.
Are bookkeeping fees tax deductible?
Fees for bookkeeping and for preparing your income tax and GST/HST returns are generally claimed as business expenses. We couldn't confirm fee levels, so get quotes.
When must I register for GST/HST?
When your taxable sales pass $30,000 over four consecutive calendar quarters, for most businesses.
What if my bookkeeper makes a mistake?
The CRA holds you responsible for the records, so check the books each quarter and keep your own copies of key documents.
- 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