Simon Says: Bookkeeper vs Accountant: What is the Difference?
When managing a business, it’s important to have the right financial support. Many business owners often wonder: do I need a bookkeeper or an accountant? While both play important roles in managing financial information, there are key differences between the two. In this article, we’ll break down what each role entails, the education and experience required, and why having access to both services under one roof can be a major advantage.
What is a Bookkeeper?
A bookkeeper is responsible for recording the day-to-day financial transactions of a business. Their primary role is to ensure that all financial records are accurate, organized, and up to date. This includes:
• Recording sales, purchases, receipts, and payments
• Reconciling bank and credit card statements
• Managing accounts payable and receivable
• Tracking payroll
• Maintaining the general ledger
Bookkeepers ensure that the financial data is properly organized and ready for review by an accountant or management.
Education and Experience for Bookkeepers
In Canada, bookkeepers often complete a diploma or certificate in bookkeeping, accounting, or business administration from a college or recognized training program. Many bookkeepers also pursue professional designations such as:
• Certified Professional Bookkeeper (CPB) through CPB Canada
• Certified Bookkeeper (CB) through the Canadian Institute of Bookkeeping
While formal education is important, many bookkeepers gain their expertise through hands-on experience in small businesses, corporate finance departments, or accounting firms.
What is an Accountant?
An accountant goes beyond recording transactions. They analyze financial data, provide advice, ensure compliance with tax regulations, and assist with strategic financial planning. Common responsibilities include:
• Preparing financial statements
• Filing corporate and personal tax returns
• Performing audits and reviews
• Offering financial analysis and forecasting
• Advising on tax planning, business structure, and financial strategy
• Ensuring compliance with CRA and other regulatory bodies
Accountants play a key role in helping businesses make informed financial decisions based on accurate and analyzed data.
Education and Experience for Accountants
In Canada, accountants typically complete a university degree in accounting, finance, or business. Many pursue professional designations such as:
• Chartered Professional Accountant (CPA) — the most widely recognized designation in Canada
The path to becoming a CPA includes:
• Completing a recognized university degree
• Enrolling in the CPA Professional Education Program (CPA PEP)
• Passing the Common Final Examination (CFE)
• Gaining 30 months of practical work experience under a designated CPA mentor
As a result, accountants have significantly more formal education and training compared to bookkeepers, equipping them to handle complex financial matters, advanced tax planning, and advisory services.
Once you have your CPA, you can further pursue specialized licenses to further your education and abilities, such as in-depth tax, audits, valuations, and many others.
Quick Comparison: Bookkeeper vs Accountant
Bookkeeper
Main Role: Recording financial transactions
Education: College diploma or certificate
Certifications: CBP, CB
Tasks: Data entry, reconciliations, payroll, invoicing
Training: 1-2 years
Compliance Work: Limited
Accountant
Main Role: Financial analysis, reporting, and advisory
Education: University degree + CPA designation
Certifications: CPA
Tasks: Financial statements, tax returns, audits, strategic advice
Training: 5-7+ years
Compliance Work: Extensive (taxes, financial reporting standards, regulations)
Why Work with a Firm that Offers Both?
While bookkeepers and accountants serve different roles, both are crucial to your business's financial health. Working with a firm that offers both bookkeeping and accounting services under one roof provides several advantages:
• Seamless Communication: No need to transfer files between separate providers.
• Better Accuracy: Accountants can oversee bookkeeping to ensure data is clean and accurate.
• Integrated Financial Planning: Smooth transition from day-to-day data entry to strategic advice.
• Cost Efficiency: Tailored service packages that fit your business’s unique needs.
• One-Stop-Shop: Simplified coordination, saving you time and giving you peace of mind.
At OVAPC, we provide comprehensive bookkeeping and accounting services so you can focus on growing your business, knowing your financials are always in expert hands.
