What a Bookkeeper Does
A bookkeeper handles the day-to-day financial record-keeping for your business. They keep your books accurate and up to date so you (and your accountant) can make informed decisions.
- ✓Recording income and expenses
- ✓Bank and credit card reconciliation
- ✓Managing accounts payable and receivable
- ✓HST/GST filing and payroll processing
- ✓Producing monthly financial statements
What a CPA Does
A Chartered Professional Accountant (CPA) is a licensed professional who can provide higher-level financial services. In Ontario, only CPAs can perform audits and issue certain financial opinions.
- ✓Year-end financial statements and corporate tax returns (T2)
- ✓Tax planning and strategy to minimize your tax bill
- ✓Business advisory — incorporation, restructuring, succession
- ✓Audits, reviews, and compilation engagements
- ✓CRA representation if you’re audited
Quick Comparison
| Bookkeeper | CPA | |
|---|---|---|
| Credentials | CPB designation (optional) or experience-based | CPA designation (licensed by CPA Ontario) |
| Focus | Day-to-day transactions and record-keeping | Year-end, tax strategy, advisory, compliance |
| Tax Returns | Simple personal (T1) or HST returns | Complex personal, corporate (T2), trust returns |
| Can Audit? | No | Yes (licensed CPAs only) |
| CRA Representation | Limited | Full representation |
| Typical Engagement | Monthly retainer | Annual or project-based |
When You Need a Bookkeeper
- • You have regular transactions (invoices, expenses, payroll) that need recording
- • You’re spending hours a month on QuickBooks or spreadsheets yourself
- • You need monthly financial statements to understand cash flow
- • Your accountant is asking for cleaner books at year-end
When You Need a CPA
- • You’re incorporating a business or restructuring an existing one
- • You need to file a corporate tax return (T2) or plan for tax efficiency
- • You’re being audited or have received a CRA notice
- • You want strategic advice on dividends vs. salary, investment holding companies, or estate planning
Do You Need Both?
Many Ontario businesses use both: a bookkeeper manages the ongoing data entry and reconciliation, while a CPA handles year-end financial statements, tax filing, and strategic planning. This combination often saves money because your CPA spends less time organizing messy records and more time on high-value advisory work.
If you’re a sole proprietor with simple finances, one professional may be enough. As your revenue grows past $100K or you incorporate, having both becomes increasingly valuable.
Find the Right Professional for Your Needs
Whether you need a bookkeeper, a CPA, or both — browse Ontario professionals filtered by specialization and city.