The simplest version

A bookkeeper does the day-to-day work of recording your financial transactions: categorizing every line item, reconciling accounts to bank statements, and producing monthly reports. An accountant takes those records and does the higher-level work: year-end financials, tax filing, and formal accounting opinions.

Most small businesses need both — but they don't necessarily need the same person doing both.

Bookkeeper: the monthly job

Your bookkeeper's job is to make sure your records are accurate, organized, and current — every month. That includes:

  • Categorizing every transaction
  • Reconciling bank and credit-card accounts
  • Generating monthly P&L and balance sheet
  • Tracking HST liability and preparing returns
  • Flagging unusual or missing items for review

If your bookkeeper is doing the job well, your accountant has clean data to work with at year-end. If your bookkeeper isn't doing the job well, your accountant is doing bookkeeping work at accountant rates.

Accountant: the year-end and strategic job

Your accountant — particularly a CPA — handles year-end financial statements, personal and corporate tax filing, tax planning (incorporation, dividends vs. salary, etc.), and audit, review, or formal compilation engagements.

For most small businesses, you talk to your accountant once or twice a year. You hear from your bookkeeper every month.

Where Sagebooks fits

We're firmly in the bookkeeping camp — with one important addition: advisory. Most bookkeepers stop at the records. We add monthly interpretation: what your numbers mean, where the pressure points are, and what to do about them.

That's the layer most small business owners are missing. They have an accountant for taxes and a bookkeeper for records, but no one explaining the numbers in real time.

Do you need both?

If you have a corporation, almost certainly yes. If you're a sole proprietor with simple income, you may be able to file your own taxes and just need a bookkeeper. We're happy to talk through your situation on a free consult — and if you don't have an accountant, we can refer you to one in the GTA West.