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Bookkeeping services for a small business cost you time or money, and the cheaper of the two is usually time you don’t have. Whoever does the work has to produce the same thing: records of every sale and expense that you can hand to the CRA for six years after the tax year they belong to.
What do bookkeeping services for a small business actually cover?
Less than most people assume. A bookkeeper records what happened: sales, bills, payments, bank activity, GST/HST collected and paid. They don’t decide your tax planning or sign your return. That’s an accountant’s job, and plenty of small businesses use both.
The scope varies a lot between providers, so get it in writing. Some only categorize transactions once a month. Others chase unpaid invoices, run payroll or prepare the GST/HST return. Fees aren’t standardized, so we won’t quote any. Ask for a written scope and a fixed monthly figure, then compare quotes on the same list of tasks.
Think of a lawn-care owner in Barrie with six crew members and a pile of fuel receipts in the truck. Paying someone for six hours a month of matching and categorizing may cost less than the weekend she’d spend doing it herself, and the weekend is hard to get back.
Which tasks should you hand over first?
| Task | How often | What goes wrong if it slips |
|---|---|---|
| Match bank and card activity to receipts | Monthly | Missing expenses, so you overpay tax |
| Track GST/HST collected and paid | Each filing period | A wrong return and a bill later |
| Payroll remittances | Each pay period, or as your remitter status requires | Late remittance penalties |
| Send and follow up invoices | Weekly | Cash arrives late |
| Year end package for the accountant | Once a year | Rushed filing and extra fees |
If you only outsource one thing, make it the monthly matching. It’s dull, it takes hours, and everything else builds on it.
What does the tax side look like in real numbers?
Take an Ontario shop that sells $8,000 of goods in a month. The GST/HST calculator applies 13% HST, which is $1,040, so customers pay $9,040. In Alberta the same sale carries 5% GST, which is $400. That tax isn’t your revenue. Whoever keeps your books has to hold it apart from your money.
Now the owner’s side. A sole proprietor in Ontario with $80,000 of net business income owes $13,233.57 in income tax and $8,892.90 in CPP (both halves) according to the self-employed tax calculator. That’s $22,126.47 in all, or 27.7% of the income, and $57,873.53 is left. Only good records can show that $80,000 is the right profit figure in the first place.
Two limits on that estimate. The tool leaves out EI and GST/HST, and it doesn’t add tax instalments. Treat it as a planning number, not a return.
Do you need help with staff pay too?
Once you hire, deductions start. For one employee paid $3,000 per pay period, the payroll remittance calculator shows $961.03 to send in for that period. Of that, $732.62 was held back from the employee, and $228.41 is your own share of CPP and EI. The full cost of that pay period to you is $3,228.41.
Remitting late costs real money, so many owners hand payroll to a bookkeeper first. Ask whether payroll is included. Often it’s billed on top.
How do you choose a bookkeeper?
Ask five plain questions. What’s in the monthly fee? Who does the work, and who checks it? Which software do you use, and can I export everything if we part ways? How do you handle GST/HST for my province? Where are my documents stored?
Then check the answers. Membership in a provincial accounting body can be looked up in its public directory. Not every bookkeeper holds a designation, and that’s not automatically a red flag, but a claim you can’t check shouldn’t count for much. Start with a small paid trial, one or two months, before you move your whole file.
Be wary of anyone who promises to cut your tax bill. Bookkeeping doesn’t lower tax. It makes sure you claim what you’re already entitled to. Before the first meeting, our self-employed expenses checklist shows the kinds of costs a bookkeeper will be sorting.
Mistakes that cost small businesses money
The common one is mixing personal and business spending in a single account. It makes every month harder to sort, and it weakens your position if the CRA asks questions. Open a separate account early.
Another is treating the monthly report as a formality. Read it. Really. If sales look flat and expenses jump, you want to know in March, not next April at tax time.
Handing the books over doesn’t hand over the responsibility. The CRA’s records guide says you must keep your records at your Canadian residence or place of business unless it gives you permission to keep them elsewhere, and that you’re responsible for adequate records even when a bookkeeper keeps them for you. Ask any provider that stores files online where those copies sit and if you can produce a full set on request.
When does a small business have to register for GST/HST?
Small suppliers, meaning businesses at or under $30,000 of taxable revenue, don’t have to register yet. The CRA’s guide for GST/HST registrants measures that over a single calendar quarter and over the last four quarters in a row. Pass the line and you must register within 29 days of the sale that took you over, and you charge the tax from that sale on. A bookkeeper who watches the running total saves you a nasty surprise. Our self-employed and small business guide shows where registration fits among the other first-year jobs.
Where we got these figures
The record keeping period, the small supplier limit and the 2026 self-employed deadlines are from Canada Revenue Agency pages, which we checked on 30 September 2026. Tax figures in the examples come from our calculators, which use 2026 federal and provincial data. Dates for the 2026 tax year fall in 2027, so confirm them on the CRA page before you rely on them. This is an independent guide, separate from any government body.
Frequently asked questions
What do bookkeeping services for a small business include?
Usually recording sales and expenses, matching bank activity and tracking GST/HST. Payroll and invoicing are often extras, so get the scope in writing.
How long must a business keep its records?
Six years from the end of the last tax year they relate to, unless the CRA gives permission to destroy them sooner.
Is a bookkeeper the same as an accountant?
No. A bookkeeper records transactions. An accountant reviews them, advises on tax and often files the return.
When must I register for GST/HST?
Once your revenue passes $30,000 over four consecutive calendar quarters, or in a single quarter, you stop being a small supplier.
What are the 2026 deadlines for a self-employed person?
The return was due June 15, 2026, and any tax owing was due April 30, 2026. Check the CRA page for the 2026 tax year dates.
- 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