The short answer: a bookkeeper records and reconciles what happens in your business every month. An accountant turns those records into year-end financial statements, tax returns and advice. A CPA is an accountant who holds the Chartered Professional Accountant designation, which is regulated provincially. Most small corporations need reliable bookkeeping plus year-end and tax work. You only need a licensed public accountant when someone requires an audit or a review engagement.
What does a bookkeeper do?
A bookkeeper keeps the day-to-day financial record of the business accurate and current. That usually means:
- recording sales and expenses in software such as QuickBooks Online or Xero
- reconciling every bank and credit card account each month
- tracking what customers owe you and what you owe suppliers
- often running payroll and preparing GST/HST returns
- keeping receipts and supporting documents organized, which CRA generally requires you to keep for six years
Bookkeepers don’t need a licence in Canada. Some earn a certification, for example through Certified Professional Bookkeepers of Canada (CPB Canada). When you hire one, experience and references matter more than a title.
What does an accountant do?
An accountant works from the bookkeeping to produce the things that go to CRA, your bank and your shareholders:
- year-end adjustments and financial statements
- the T2 corporate tax return, with the financial statements reported to CRA in the required format
- tax planning, such as salary versus dividends
- dealing with CRA letters, reviews and reassessments
In most provinces, “accountant” on its own isn’t a protected title, so here too, ask about experience with corporations like yours.
What makes a CPA different?
CPA stands for Chartered Professional Accountant. CPAs are regulated by a provincial body (CPA Manitoba in Manitoba, CPA Alberta in Alberta), while CPA Canada runs the national certification program. To earn the designation, a candidate needs:
- a university degree
- the CPA professional education program and its final examination
- a period of relevant, supervised practical experience, currently at least 30 months
Once certified, CPAs must complete continuing professional development: at least 20 hours a year and 120 hours over every three-year period, including ethics.
Audits and review engagements, the reports that give lenders and investors formal assurance, must be done by a licensed public accountant: a CPA who also holds a public accounting licence.
Which one does your corporation need?
- Your books are behind, or nobody has reconciled in months: a bookkeeper, with an accountant reviewing the year-end. If you’re a year or more behind, start with a catch-up.
- You need your year-end statements and T2 return: an accountant who works with corporations.
- CRA has sent a letter: someone experienced with CRA correspondence who can be authorized to deal with CRA for you.
- You’re deciding how to pay yourself, or whether to incorporate: an accountant for tax planning. If you’re a real estate agent, see our guide to personal real estate corporations.
- A lender, investor or funder wants an audit or review engagement: a licensed public accountant.
Do you need three separate providers?
Usually not. Most small corporations are best served by one team that keeps the books and does the year-end, so nothing gets lost between the monthly work and the tax return. That’s how Cayde works: monthly bookkeeping, payroll, GST/HST, year-end and corporate tax returns are handled by one team, under one engagement. If your situation ever calls for an audit or a review engagement, we’ll tell you up front.
Questions to ask before you hire anyone
- How many corporations like mine do you work with?
- Who does the monthly work, and who reviews it?
- What’s included in the fee, and what costs extra?
- Who files GST/HST and payroll remittances, and who talks to CRA for us?
- How will you tell us about deadlines, and about problems?
Sources: CPA Manitoba, Continuing professional development; CPA Canada, CPA practical experience requirements; CRA, Where to keep your records and for how long. First published April 2023 and fully revised in September 2026. General information, not advice for your specific situation.
