Bookkeeper vs accountant vs CPA
Updated
Three different jobs that get used as if they were one. Here is what each actually does, which one your business needs, and why most incorporated owners end up using two of the three.
Quick answer: A bookkeeper records transactions and keeps your monthly books accurate. An accountant prepares and interprets financial statements. A CPA is a regulated professional who can also handle corporate tax, compilation engagements and planning. Most incorporated small businesses need bookkeeping monthly and a CPA annually — often from the same firm.
On this page
The three roles side by side
| Bookkeeper | Accountant | CPA | |
|---|---|---|---|
| Typical work | Daily/monthly entries, bank reconciliation, invoicing, GST filing, payroll runs | Financial statements, adjusting entries, interpreting results | Year-end statements, T2, tax planning, compilation engagements, CRA representation |
| Credential | No protected designation; certificates exist but are optional | “Accountant” is not a protected title in Canada | Regulated designation — exams, experience, ongoing CPD, governed by CPABC in BC |
| When you need one | As soon as you have regular transactions | When you need the numbers explained | Once you incorporate, and at every year-end after |
| How it is billed | Monthly fee scaled to transaction volume | Hourly or per engagement | Annual fixed fee for the year-end package; monthly if bookkeeping is bundled |
| Can sign a compilation report? | No | No, unless they are a CPA | Yes — CSRS 4200 |
Fee structures shown are how each role is typically billed, not quoted prices. See our published ranges.
The part that trips people up: “accountant” is not a protected title
Anyone in Canada may call themselves an accountant. CPA (Chartered Professional Accountant) is the regulated designation: a degree, the CPA program, exams, verified experience and continuing education, overseen by a provincial body (CPABC in British Columbia) that can discipline. When something goes wrong, there is a regulator, mandatory standards and required liability insurance.
It also matters for specific deliverables. A compilation engagement report (CSRS 4200) — the standard financial statement package most lenders and the CRA expect from a small corporation — can only be issued by a licensed public accounting firm.
What most small corporations actually need
The honest answer, and how we work: bookkeeping on a monthly cadence, plus a CPA at year-end. Monthly work keeps the ledger reconciled, GST filed and payroll remitted; annual work produces statements and a T2 corporate return and catches decisions due before year-end: salary versus dividends, equipment timing, shareholder loan balances.
Avoid two disconnected providers: a bookkeeper coding one way, a tax preparer redoing half in March, each assuming the other caught the oddities. When one firm does the books and the year-end, year-end is review, not reconstruction, which is why a fixed fee works.
Where a fractional CFO fits
All three roles above look backwards: they record, report and file what already happened. A fractional CFO looks forwards — forecasting, cash-flow planning, pricing, financing and the decisions that shape next year’s numbers. It is a different job, priced as a monthly retainer, and most businesses genuinely do not need it until they are past the owner-plus-a-few-staff stage or facing a decision (a large hire, an acquisition, a financing round) they cannot see clearly. More on what a fractional CFO does
Choosing, in one paragraph
A sole proprietor with modest volume may need only a good bookkeeper and a personal tax preparer. Once you incorporate, you need a CPA: the T2, the compilation report and the planning sit on that side. Either way, ask who does the work, whether the fee is fixed, and whether they are available in June as well as April. Our 10-question buyer’s guide helps.
Who keeps your books is one decision among several that compound; the decision guide lays out the others.
Prepared and reviewed by a CPA at EverStone CPA, serving businesses in BC, Alberta, Ontario and Manitoba. About the firm · Send an enquiry
Bookkeeper, accountant or CPA — FAQ
Do I need a bookkeeper or an accountant?+
What is the difference between an accountant and a CPA?+
Can a bookkeeper file my corporate tax return?+
What does a fractional CFO do that an accountant does not?+
How much does each one cost?+
Can I do my own bookkeeping and still use a CPA for the year-end?+
Who is allowed to represent me if CRA reviews my return?+
We work with owner-managed businesses across BC online — accountant in Vancouver and beyond. The narrower question — CPA versus tax preparer — gets its own comparison.
Deciding who does what often comes down to timing. See when the corporate return is due and what has to be ready before it.
