Bookkeepers in Canada charge $20–$150/hour or $300–$2,300/month depending on business size and complexity. They handle tasks like transaction tracking, payroll, and tax compliance using software like QuickBooks and Xero.
While outsourcing offshore is cheaper, local bookkeepers ensure better compliance and communication. Affordable Canadian options include MyBookly, ConnectCPA, and Bench.
Save costs by automating tasks, staying organized, and bundling services. Most bookkeepers can use your preferred software.
What Do Bookkeepers Charge in Canada?
The easy answer to this is “it depends”, but of course you’re looking for a more specific answer.
While bookkeeping is composed of many minor services, such as ensuring financial records are accurate, organized, payroll, and taxes, it also depends on the business complexity, the transaction volume, and the type of bookkeeper you’re hiring.
The average cost of bookkeeping in Canada ranges between:
- Freelancer: $20 – $70 / hour
- Canadian Bookkeeping Firm: $300 – $1,500 / month
- USA-based firm: $400 – $2,300 / month
If you’re a small business owner you can expect to pay anywhere from $300 – $750, and if you’re an enterprise business be ready to pay $750 – $2,300 / month.
What Do Bookkeepers Actually Do?
While bookkeeping might sound like simply tracking expenses, it involves much more. Bookkeepers play a vital role in maintaining financial transactions, keeping records accurate, and reconciling summarized financial reports.
They can also handle payroll, ensuring taxes and deductions are accurately applied, and assist with GST/HST filings to keep you compliant with Canadian tax laws.
Bookkeepers often act as the bridge between your daily financial operations and your accountant, providing them with organized records to help them prepare taxes and financial planning.
What Type of Software Do Bookkeepers Use?
- QuickBooks Online: The most popular among small to medium businesses in Canada.
- Xero: A good alternative to QBO when it comes to user interface and accounting features.
- Sage 50: Good for more advanced accounting management.
- Wave Accounting: If you’re a startup or freelancer, this platform is for you since there are free and cheap options.
- FreshBooks: Similar to Wave, it’s good for freelancers and solopreneurs. It is also a cheaper alternative.
Is It Cheaper to Outsource My Bookkeeping Offshore?
It is common for small businesses and freelancers to outsource their books to cheaper alternatives found commonly in India and the Philippines.
Expect anywhere from $5 – $20 / hour.
While it is cheaper, some of the challenges you may experience are communication, time zone differences, and privacy/security of your financial information.
If you can find a local bookkeeper, this would be a better bet if you’re concerned about these challenges.
Do I Need a Bookkeeper or Should I Do It Myself?
If hiring a bookkeeper will save you time and help make your finances more efficient, it is a good investment.
Bookkeeping is time consuming and it can take away time from you running your main business. If you think about the time you can use towards generating more revenue, it’s worth the investment.
However, if you’ve just started your business, try to use any of the software listed above and see if you can make it work.
Affordable Bookkeeping Companies in Canada
Here’s a list of companies offering reliable and affordable bookkeeping services.
1. MyBookly
- Summary: MyBookly is a small business accounting, bookkeeping and tax firm. Their bookkeeping services can range between $250 – $650 per month depending on the number of transactions and services included.
- Solution: Bookkeeping Service
2. ConnectCPA
- Summary: A tech-forward firm that integrates cloud accounting software to streamline your finances. Pricing starts at $400/month.
3. Bench Accounting
- Summary: Offers online bookkeeping services, making it easy for startups and small businesses to access monthly financial statements. Plans start at $249/month.
How Can You Save on Bookkeeping Costs?
There are a number of ways to reduce your bookkeeping expenses by automating things yourself.
By setting up your accounting software (i.e. QuickBooks or Xero), you can streamline your bookkeeping, where all a bookkeeper has to do is manually update your rules, categorize transactions, handle receipt/invoices and other processes.
By doing it this way, you can reduce costs.
You can also save on costs by comparing quotes and prices in monthly bookkeeping. While monthly prices can sometimes be cheaper, it’s best to compare both by first starting off on an hourly basis.
Will a Bookkeeper Use My Accounting Software?
This will depend on your bookkeeper. Some specialize with specific software, while others may be more flexible.
Final Thoughts
Hiring a bookkeeper can save you hours per week, and also reduce the amount of error and tedious tasks.
If you’re just starting out, you can try to manage it, but if it becomes more complex and if your business is growing, it might be worth outsourcing to a local firm.
Need help with your bookkeeping? Connect with us today.
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Danny Khanna is the managing partner at MyBookly Accounting. He manages all client communication, financial advisory, accounting & tax services, as well as company operations.