Guide · July 2026
Bookkeeper vs. accountant: what do you actually need?
They're different trades that owners constantly conflate, and the confusion is expensive in both directions: paying CPA rates for data entry, or expecting tax strategy from someone hired to reconcile a bank feed.
The two jobs, in one sentence each
A bookkeeper records what happened: every sale, expense, and transfer, categorized and reconciled, so the books match reality.
An accountant interprets and certifies it: in Canada, usually a CPA who prepares year-end statements, files corporate taxes, plans your tax position, and represents you if the CRA comes asking.
Who does what
| Task | Whose job |
|---|---|
| Records daily transactions | Bookkeeper |
| Reconciles bank accounts | Bookkeeper |
| Runs payroll | Bookkeeper (usually) |
| Files corporate taxes | Accountant (CPA) |
| Signs off on financial statements | Accountant (CPA) |
| Tax planning and CRA representation | Accountant (CPA) |
| Tells you what last month's numbers mean | Often neither: that's the gap |
The gap in the middle
Notice the last row. A bookkeeper hands you accurate records; a CPA looks at the year mostly after it's over. Neither is paid to sit with you in the second week of the month and say “margins slipped two points and here's the likely reason.” In bigger companies that's a controller or a fractional CFO. In small businesses, it's usually nobody. The owner squints at software dashboards at 11 p.m.
That middle layer (management reporting) is what Vela's Harbor plan does: your transactions in, a categorized CRA-aware P&L and plain-English variance notes out, every month, human-reviewed. It works alongside a bookkeeper and a CPA, not instead of them; in fact it makes both of their jobs faster. Here's exactly what it looks like.
A simple rule of thumb
- Under ~100 transactions a month and no payroll: software plus a monthly reporting layer may be all you need
- Real volume, payroll, or GST/HST complexity: hire a bookkeeper; it pays for itself
- Every incorporated business: have a CPA for year-end and tax, full stop
- Any size: someone should be translating the numbers into decisions monthly. If nobody is, that's the first gap to fill
This guide is general information, not accounting advice: your CPA knows your situation; we don't.