Bookkeeper or accountant: who do you actually need (and when)?

If you have ever wondered, “Do I need a bookkeeper or an accountant?” you are not alone.

For many business owners, the line between the two can feel blurry. Both deal with numbers and both talk about money, but their focus is quite different.

The accountant: your tax strategist

Accountants are your go-to people for tax season. They know the rules, the deductions, the credits, and how to make sure you pay no more tax than necessary.

In Canada, a CPA (Chartered Professional Accountant) can help you file your corporate taxes. They are trained to understand complex tax laws, capital cost allowances, and how to record year-end adjustments such as depreciation or amortization. If those words make your head spin a little, then that is exactly why it can be worth having a CPA in your corner 😉

Think of your accountant as the one who looks at your books, not the one who looks after them.

Example: Your accountant might advise you to buy that new laptop before year-end to reduce your taxable income, or suggest the most tax-efficient way to treat that professional development training you took.

The bookkeeper: your day-to-day organizer

A bookkeeper, on the other hand, is the person who keeps your financial world running smoothly throughout the year. They are the ones who turn the pile of receipts, bank feeds, and invoices into a clear financial picture.

A good bookkeeper does more than just enter data. They make sure every transaction is categorized correctly, your bank accounts reconcile, and your books make sense to anyone who looks at them, including your accountant.

When your books are tidy and consistent, your accountant’s job becomes much faster and cheaper.

Where it gets tricky

Sometimes bookkeepers and accountants overlap, which is where business owners can get confused.

Some accountants offer bookkeeping services, although usually at a higher rate because their focus is different. And some bookkeepers (like yours truly 😉) do light year-end work, help interpret financial reports, and think along with your business.

For example: a “data entry” bookkeeper might just log your Jane or Practice Better monthly $100 subscription payment as “software” and call it done. A more strategic bookkeeper will ask if an annual subscription would reduce costs, and whether it makes sense to report this platform separately since it’s central to how you deliver your coaching services. That way, you can clearly see what it costs to run your core business.

When do you need each?

You need a bookkeeper when you start to feel behind on your finances, when reconciling your accounts becomes a monthly headache, or when you want to actually understand where your money is going. Bookkeepers handle accuracy and clarity.

You need an accountant when it is time to file taxes, handle government reporting, or make strategic tax decisions. Accountants handle compliance and optimization.

Working together = the sweet spot

Ideally, your bookkeeper and accountant work hand in hand. Your bookkeeper keeps the books clean and up to date, and your accountant takes those clean books and works their tax magic.

When everyone does their part, you get:

• Reliable reports to make smart business decisions all year round

• Stress-free tax season

• A business that feels under control, not under pressure

Final thought

As a coach or consultant, you probably already know the value of delegation. Letting the right person do the right job saves time and stress. Bookkeeping and accounting are no different. Your business deserves both the solid foundation of accurate books and the strategic oversight of smart tax advice.

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Hi, I'm Katrien. With Second Banana Bookkeeping & Advisory, I help coaches, consultants and health professionals translate their numbers so they can make smarter, calmer business decisions.