Frequently Asked Questions
Q: Do I need a bookkeeper?
If you aren't confident in your own bookkeeping knowledge, hiring a bookkeeper can provide you with peace of mind that your business finances are in order and done correctly. Otherwise, hiring a bookkeeper is a great option if you simply don't like dealing with it yourself and want to spend more time focusing on growing your business.
Q: Why outsource an independent bookkeeper rather than employ one?
Outsourcing an independent bookkeeper is simple: The bookkeeper works for you, they send you an invoice, and you pay that invoice. You can end the working relationship at any time.
Hiring an in-house bookkeeper is more complicated. After a potentially lengthy hiring process you will need to calculate their EI/CPP/income tax deductions, you may need to pay them a minimum amount of hours to keep them employed with you even if they don't actually work that many hours, the list goes on. Ending their employment could get tricky as time goes on.
For small businesses, it's likely that an outsourced bookkeeper the easiest solution that makes the most sense.
Q: Don't bookkeepers and accountants do the same job?
No, they don't!
Bookkeepers handle the day-to-day financials of your business such as categorizing expense and revenue transactions, payroll, and organizing your data for year end reports and taxes.
Accountants typically charge a much higher hourly rate than a bookkeeper, especially if they have a CPA designation. They can perform high-level analysis on your business, forecast your future financials, and process complex tax situations. In the early years, most small businesses will not need an accountant for much else besides filing taxes.