Every business has to keep books: the law requires records that support your income, expenses and sales taxes, kept for six years. The real question is who keeps them. Here is how to decide whether you need a bookkeeper, and what to expect from one.

What a bookkeeper does

  • Records every sale and expense in your accounting software, in the right category.
  • Reconciles your bank and credit card accounts each month, so the books match reality.
  • Tracks the GST and QST you collect and pay, and prepares your sales tax returns.
  • Keeps receipts and invoices organized, so year-end and any review by the CRA or Revenu Québec go smoothly.
  • Produces monthly reports, so you know your profit and cash position without waiting for year-end.

Signs you need one

  • You do your books in a rush once a year, or a few days before a GST/QST deadline.
  • You aren't sure how much profit you made last month.
  • Business and personal expenses are mixed in the same account.
  • Receipts live in a shoebox, a glove compartment and your email.
  • You recently registered for GST/QST, incorporated or hired your first employee.
  • Your accountant charges extra at year-end to clean up the books.

Doing it yourself vs. hiring a bookkeeper

Doing your own books can work when you have few transactions, no employees and the time to reconcile every month. It stops being worth it when it takes evenings you would rather spend on clients, or when mistakes start to cost money: missed expenses, sales taxes calculated wrong, late filing penalties.

A good middle ground is software like QuickBooks Online with a bookkeeper who reviews and reconciles it every month. Your bank transactions come in automatically, and you keep access to your numbers at all times.

Bookkeeper, accountant or CPA?

A bookkeeper keeps the day-to-day records. An accountant also prepares financial statements and tax returns and advises on taxes. Bookkeeping, payroll and tax preparation are not reserved for CPAs in Quebec; some engagements are, such as compilation engagements, which at ABZ are done in partnership with a CPA firm. For most small businesses, one firm that does the books and the year-end is simplest: nothing gets lost between two offices.

What it costs

Bookkeeping is usually priced by the month, based on your volume of transactions. At ABZ Accounting, bookkeeping starts at $175 per month, and the full package with sales taxes and year-end starts at $250 per month. See our prices.

How to start

  1. Open a separate bank account and credit card for the business, if you haven't already.
  2. Gather your bank statements, sales and expense receipts for the current year.
  3. Ask for a fixed quote. We look at your volume and give you a monthly price before starting, including any catch-up needed.

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