Updated Checked by the Tax-Services.ca editorial team How we check
In Ontario, a licensed accountant holds a public accounting licence, and only a licensed person may sign audit and review reports for the public. Bookkeeping and most everyday accounting work don’t need a licence. So the useful difference is what the person is allowed to sign, and whether a regulator can discipline them if something goes wrong. Rules differ by province, and we only confirmed Ontario.
What does a public accounting licence allow?
CPA Ontario says the person responsible for signing a statement or report on a public accounting engagement must hold a public accounting licence. It adds that practising public accounting without one is prohibited under the Public Accounting Act, 2004. Other people on the engagement team, such as a reviewer, may hold a licence but don’t have to.
We couldn’t read the full act text, so we rely on CPA Ontario’s own summary here. If your business needs an audit or a review engagement, for example because a lender or a shareholder agreement asks for one, this is the rule that applies to you.
Is an unlicensed accountant breaking the law?
Not by default. Job Bank says the bookkeeper occupation is not regulated in Canada. Someone can keep your books, run payroll and prepare your working papers without holding a licence. The trouble starts when they present work that needs a licence, or when a title suggests more than they hold.
| Question | Licensed public accountant (Ontario) | Unlicensed bookkeeper or accountant |
|---|---|---|
| Sign an audit or review report | Yes, for the person responsible | No |
| Keep books, do payroll | Yes | Yes, no licence required |
| Answers to a regulator | Yes, CPA Ontario for its members | Not confirmed, depends on any designation held |
| Fees | Not confirmed | Not confirmed |
We left fees out on purpose. We found nothing official to support a comparison, and prices vary with the job.
How do you choose between them?
Match the person to the task. For day to day books, a competent unlicensed bookkeeper can be the right fit, and you’d save nothing by hiring someone with more letters. For a set of statements a bank will rely on, or anything requiring an audit or review, you need a licensed public accountant.
Say Jordan runs a small trucking company near London, Ontario. For monthly books and payroll, a local bookkeeper does the job fine. When the bank asks for reviewed statements before extending a bigger line of credit, Jordan needs someone who holds the licence. Same business, two different people, and nothing odd about that.
Tax filing sits in between. We couldn’t confirm a rule that says who may prepare a tax return for a fee, so ask the preparer about their training and whether they’ll represent you if the CRA writes back. And whoever you hire, you remain responsible for what’s filed in your name.
What should you ask before you hire?
Keep the questions plain. Which designation or licence do you hold, and where can I verify it? Who signs the work? What happens if there’s a mistake, and do you carry insurance? Who else touches my data? If someone says they’re a “licensed accountant”, ask which regulator licensed them. A real one won’t mind.
You can also do your own quick sanity check with the numbers. Before a meeting, run your rough income through the income tax calculator, or your business profit through the self-employed tax calculator, so you know if a quoted tax figure is in the right range. That second tool leaves out EI, so expect a gap. If you have staff, the payroll remittance calculator gives a ballpark for what should go to the CRA each pay run.
What if something goes wrong with your accountant?
Start with the written engagement letter, since it says what the person agreed to do. Raise the problem with them in writing and give a reasonable deadline for a fix. If they hold a designation, the provincial body is the next stop, because CPA bodies take complaints about their members. If they hold no designation, you’re mostly looking at the contract, and possibly small claims court for money you lost. We haven’t confirmed how long complaints take or what outcomes are possible, so ask the body when you call.
What mistakes come up most?
People assume a friendly title means a regulated one. “Accountant” on a business card can mean many things. Others hire the cheapest option for a job that needed a licence, then pay again to redo it. And some pay for full accounting when what they need is bookkeeping, which the guide on full-cycle bookkeeping lays out. The reverse happens too. A bookkeeper gets asked to give tax advice, and the advice is only as good as their training.
Whoever you choose, keep your own copies of the records. The CRA expects required records to be kept for six years from the end of the last tax year they relate to, as its page on keeping records explains.
Where we got these figures
Licence rules come from CPA Ontario’s public accounting licence page, which cites the Public Accounting Act, 2004. Statements about bookkeepers come from Job Bank. Retention comes from Canada Revenue Agency guidance. Calculator outputs use 2026 tax data. Rules in other provinces weren’t confirmed, and this site has no link to any regulator or government body.
Frequently asked questions
Can an unlicensed person keep my books?
Yes. Job Bank says the bookkeeper occupation isn't regulated in Canada, so no licence is required for that work.
Who must sign an audit in Ontario?
CPA Ontario says the person responsible for signing a public accounting report must hold a public accounting licence.
Is there a fee difference?
We couldn't confirm typical fees for either group. Ask for a written quote for the exact work.
Do the rules match in every province?
We only confirmed Ontario. Check your provincial accounting regulator before you hire.
Who answers for my tax return?
You do, whoever prepares it. Ask the preparer whether they will help if the CRA follows up.
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