How Much It Costs to Hire a Bookkeeper in Canada

As a small business owner in Canada, it is essential to prioritize managing your business finances. Effective bookkeeping makes a significant difference for startups, entrepreneurs and self-employed business owners. A good bookkeeping process ensures your business has accurate financial records and complies with Canada Revenue Agency (CRA) requirements. 

A frequent question small business owners face is how much it costs to hire a bookkeeper in Canada. Keep reading to understand the factors driving bookkeeping costs and when it is important to hire a professional bookkeeper. 

Average Costs for Bookkeeping Services in Canada

The average cost of bookkeeping in Canada varies depending on the services your business needs and the bookkeeper you hire. For example, freelance bookkeepers with no professional certifications may cost less than hiring a firm with chartered professional accountants. Also, bookkeepers offering hourly rates may have different cost implications than those who offer monthly packages. 

Here’s what typical bookkeeping costs can look like:

Hourly Rates

Hourly rates for bookkeeping services are ideal for small businesses with simple business and finance operations. With an hourly rate pricing model, you can expect to hire a freelancer or part-time bookkeeper within the range of $30 to $100 per hour. The actual cost will depend on the expertise and experience of the bookkeeper. 

Chartered Professional Accountants, also known as CPAs, often charge more for bookkeeping services. Their rates can range from $150 to $450 per hour. CPAs and accounting firms charge a premium due to their certification, expertise and broad range of experience. 

Monthly Packages

A monthly bookkeeping package may be more efficient and cost-effective if your business needs ongoing bookkeeping and accounting services. Monthly bookkeeping and accounting packages generally include various services and can be grouped into levels based on specific business needs and complexity. Most bookkeepers offer monthly packages for basic, standard or premium needs, and the cost varies based on the services required.

Basic bookkeeping services can range from $200 to $500 per month. Standard bookkeeping services can be around $500 to $1,200 per month. Premium bookkeeping, which offers more complex services, can range from $1,200 to $2,500 monthly. If your books are already behind, catch-up work is priced separately. Here’s what catch-up bookkeeping costs in Canada.

Here’s a comparison breakdown to help you understand how much hiring a bookkeeper in Canada costs.

Factors Influencing Bookkeeper Costs

When estimating the cost of hiring a bookkeeper in Canada, you must consider factors such as their experience, credentials, required services, and business complexity.

Experience and Credentials

The qualifications and experience of a bookkeeper influence the fee they charge. Bookkeepers with recognized certifications and CPA designations often charge higher rates. Additionally, a bookkeeper with significant years of experience may demand higher costs for their expertise. As a business owner, you need to determine the complexity of your business and what kind of expertise you need for bookkeeping services. 

Service Type

As a small business owner in Canada, the type of service provider you need for your business will determine the cost of bookkeeping. For example, freelancers or part-time bookkeepers are ideal for smaller businesses and can charge between $20 and $50 per hour. Using bookkeeping firms for more business scalable support can cost more, at $500 to $2,000 monthly. If your business hires an in-house bookkeeper for daily business support, this would cost more with salary and benefits ranging from $34,000 to $77,000 annually.

Business Complexity

Businesses with more complex financial transactions and specific industry needs may require bookkeepers with more experience and expertise, resulting in higher fees. For example, if your business has relatively higher transaction volumes and a complex accounting process, you may need a certified bookkeeper with more years of experience. Also, if your business is in an industry with specific bookkeeping requirements, bookkeepers may charge higher fees for their services. 

What You Get for the Price

When paying for bookkeeping services as a business in Canada, here are the services you can expect to get for the amount you pay and the monthly package you require. 

Basic ($200–$500/month)

This package is ideal for micro or small businesses with straightforward needs. Services typically include:

• Bank and credit card reconciliations (monthly)
• Categorization of transactions
• Monthly profit and loss statements
• GST/HST filing (quarterly)

Standard ($500–$1,200/month)

Designed for growing businesses, this package includes more comprehensive support:

• Everything in the Basic package
• Accounts receivable/payable management
• Payroll processing (up to 5 employees)
• CRA remittances
• Monthly financial health check-ins

Premium/Complex Businesses ($1,200–$2,500+/month)

For larger or more complex businesses, premium packages provide advanced services, such as:

• Everything in the Standard package
• Customized reporting
• Budgeting and forecasting
• CFO-level advisory
• Audit preparation and support
• Coordination with tax accountants or year-end preparation

Regional Cost Variations in Canada

Bookkeeping costs can vary by location. For example, major cities like Toronto and Vancouver, which have relatively higher costs of living, may have higher bookkeeping rates, typically within the range of $45 to 80 per hour. On the other hand, smaller cities and rural areas may have lower bookkeeping fees with more affordable rates ranging from $30 to $60 per hour.

When to Hire a Professional vs. DIY Bookkeeping

Small businesses need to consider business complexity and available resources when deciding to hire professional bookkeeping services or manage this process in-house. 

Pros of Hiring a Bookkeeper

Hiring a professional bookkeeper may be more advantageous for your business. Here are a few pros for hiring a bookkeeper:

• Time-saving: Hiring a professional saves you time to focus on running your business.
• Accuracy: Bookkeepers help prepare error-free financial records, ensuring your business complies with CRA regulations.
• Expert insights: Professional bookkeepers have certifications and broad experience, allowing them to provide business insights that aid financial and taxation planning.

Considerations for a Do-It-Yourself Approach

If your business has small transaction volumes and less complex accounting processes, a DIY approach to bookkeeping may be suitable. Additionally, a tight budget and limited resources may make DIY bookkeeping a better option for your business.  

DIY Cost Comparison Table

It is important to note that while doing your bookkeeping process yourself may seem cheaper in the short term, it may become more costly due to errors, compliance penalties, ineffective use of time and resources, and other hidden costs. Here’s a breakdown of what it may cost your business to outsource bookkeeping versus doing it yourself. 

By outsourcing your business’s bookkeeping services to Premium Bookkeeping & Accounting, you can get a fee starting at $250 per month for basic bookkeeping. We ensure your business maintains accurate financial records and complies with the Canada Revenue Agency, giving you peace of mind and time to run your business. Our bookkeeping services minimize penalties, late filings, and rework costs so you can avoid common bookkeeping mistakes.

Final Recommendations

Every business in Canada needs bookkeeping services to ensure compliance with the CRA and file taxes on time. Evaluating your business needs when hiring bookkeeping services professionals is essential.

If your business is relatively small and just starting with simple financial transactions, consider hiring a part-time freelancer or opting for a basic bookkeeping package. As your business grows and includes more complex financial transactions, a bookkeeping firm and professional services by a certified bookkeeper or Chartered Professional Accountant can ensure your business has accurate financial records, that you file your taxes on time, and that you stay compliant with the CRA. 

You may also be interested in these articles:

• How to Pay Yourself, How to File A Corporate Tax Return
• Non-Taxable Benefits for Can Companies