Updated Checked by the Tax-Services.ca editorial team How we check
The difference between a bookkeeper and an accountant in Canada comes down to timing. A bookkeeper records what already happened: sales, bills, payroll and bank matching. An accountant usually looks at those records afterward, prepares the financial statements and tax returns, and tells you what to do next. Plenty of people do both jobs, so the label matters less than what the person has agreed to do for you.
Fees vary too much between cities and between jobs for a general page to give a reliable range, so this one leaves numbers out and focuses on what to ask.
What does each one usually do?
| Task | Bookkeeper | Accountant |
|---|---|---|
| Record sales and expenses | Usually | Sometimes |
| Match bank statements | Usually | Rarely |
| Payroll and source deduction payments | Often | Sometimes |
| GST/HST return | Often prepares it | Reviews or files it |
| Financial statements | Sometimes | Usually |
| Income tax return | Depends on the person | Usually |
| Advice on structure and tax planning | Rarely | Yes |
Read that table as a tendency, not a rule. It describes how the work is commonly split, and one person may cover several rows.
Think of Lena, who runs a small bakery in Moncton. Her bookkeeper comes in every second Friday, matches the bank feed, enters the supplier bills and sends the payroll remittance. Once a year Lena’s accountant takes that tidy file, prepares the statements and the return, and says, “You’re growing faster than your cash. Let’s talk about timing before you buy that second oven.” Same books, two very different jobs.
Which do you need first?
If you’ve just started earning, a bookkeeper (or software and an hour a week) is usually the first need, because the CRA wants records for six years from the end of the tax year they relate to. Nobody can fix missing records later.
The accountant comes in when a decision has real money attached. Should you register for GST/HST? Is it time to incorporate? What’s your instalment plan? Those are the moments a second opinion pays.
On the first of those, the CRA’s rule is that a small supplier doesn’t have to register until its worldwide taxable sales pass $30,000. Its memorandum on small suppliers sets out the test, and a bookkeeper who tracks your sales by quarter can tell you when you’re getting close.
Here’s a quick sense of scale. A sole proprietor netting $100,000 in Ontario owes $19,044.97 of income tax and $9,292.90 of CPP by the self-employed tax calculator. A single structure question on a number like that is worth an hour of a professional’s time. (The tool leaves EI out and lowers only income tax with deductions, so take the total as a rough guide.)
Who handles payroll and sales tax?
Whoever you choose, ask in writing. Payroll is a good test. On $3,000 gross every two weeks for one Ontario employee, the payroll remittance calculator shows $961.03 to send the CRA each pay period. Somebody has to calculate it, pay it on time and record it correctly. So ask who.
The same goes for the GST/HST return. The CRA says monthly and quarterly filers file and remit one month after the period ends, and a late return is a bookkeeping failure that becomes a tax cost.
How do you check someone’s credentials?
Titles and rules differ across provinces. Since 2013 the CPA designation has replaced the older CA, CGA and CMA titles, according to Wikipedia’s article on CPA Canada, and provincial bodies run the member directories. Bookkeeping, on the other hand, has no single national title. So ask what designation or training the person has, which body issued it, and whether that body lets you look them up. If they say they can file with the CRA on your behalf, ask how they’ll be authorized to see your account, and read the CRA’s own pages on that before you hand over access.
Also ask what they don’t do. A good bookkeeper will tell you when a question is beyond the books. A good accountant will tell you when your records are too thin to work from.
Common mix ups
People hire an accountant in March to fix eleven months of missing records, then pay for cleanup instead of advice. Others hire a bookkeeper and assume the tax return is included. It often isn’t.
Another one: a corporation adds a layer. Its own return is separate from yours, and the corporate tax calculator shows why the split matters. On $300,000 of Ontario small business income it shows $35,088, though the Ontario small business rate changed in July 2026, so that figure is a blend and not a published rate. Whoever prepares that return needs to know which year end you use.
Can one person do both jobs?
Yes, and for a one-person shop that’s often the sensible setup. A CPA who keeps your books and files your return saves you hand-offs and lost files. The trade-off is that nobody is double-checking the work. If you go that way, schedule a yearly conversation where the same person steps back from the entries and tells you what the numbers say.
How we checked the figures
Record keeping periods and 2026 filing rules come from the CRA‘s business pages, read in 2026. Tax and payroll figures come from our 2026 calculators. Fee levels and provincial titles aren’t covered, so the last word on those sits with the body that issues the designation. This is an independent guide, separate from any government body.
Frequently asked questions
Can a bookkeeper file my income tax return?
Some do and some don't. Ask before you hire, and ask who signs off if the CRA has questions.
Do I need both a bookkeeper and an accountant?
Not always. Many small businesses use software for the books and hire an accountant once a year. As you grow, the split gets more useful.
Who pays my payroll deductions to the CRA?
That depends on who you agree with. On $3,000 gross every two weeks in Ontario, the total to send the CRA is $961.03 per pay period.
How much do they cost?
We couldn't confirm reliable fee levels, so we don't quote any. Ask for a written scope and price first.
How long should my records be kept?
The CRA says six years from the end of the last tax year they relate to.
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