Starting and Growing a Bookkeeping Business in Canada

• 2025-05-20 18:29:02
• admin

Bookkeeping is one of the most in-demand services for small and medium sized businesses across Canada. With growing awareness of financial compliance and tax reporting, Canadian business owners increasingly seek professional help to manage their books. This demand presents an excellent opportunity for professionals looking to start or expand a bookkeeping business in Canada.

In this blog, we cover:

Why bookkeeping is a growing business in Canada

Licensing and compliance requirements
Types of services a Canadian bookkeeping business can offer
Tools and software commonly used

• How OBG Outsourcing supports Canadian bookkeeping firms
  
   

1 Why Start a Bookkeeping Business in Canada

Canada has over one million small businesses, many of which require monthly or quarterly bookkeeping services. Bookkeeping is essential for:

Recording day to day business transactions

Preparing financial reports

Supporting tax filings

Managing payroll and accounts payable or receivable
 

Bookkeeping is a service that can be offered remotely and scaled efficiently. With flexible service models and automation tools, Canadian bookkeepers can serve clients across the country or even globally.

2 Licensing and Registration Requirements in Canada

While you do not need to be a Chartered Professional Accountant CPA to offer bookkeeping services in Canada, here are a few requirements to consider:

Business Registration
Register your business name with the provincial or federal government and obtain a business number BN.

GST or HST Registration
If your annual revenues exceed thirty thousand Canadian dollars, you are required to register for the Goods and Services Tax GST or Harmonized Sales Tax HST.

Professional Certifications
Consider earning certifications such as QuickBooks ProAdvisor, Xero Advisor, or becoming a member of the Institute of Professional Bookkeepers of Canada IPBC to enhance credibility.

Data Privacy Compliance
Ensure you comply with Canada's Personal Information Protection and Electronic Documents Act PIPEDA when handling client financial data.

3 Bookkeeping Services You Can Offer in Canada

A Canadian bookkeeping business can offer a wide range of services including:

Basic Bookkeeping

Bank and credit card reconciliations

Transaction recording

Monthly reports
 

Payroll Management

Processing employee pay

Managing deductions and taxes

Filing payroll remittances with CRA
 

Accounts Payable and Receivable

Invoice tracking

Vendor payments

Customer collections
 

Sales Tax Filing

GST or HST reporting and filing

Provincial sales tax PST tracking where applicable

Financial Reporting

Profit and loss statements

Balance sheets

Cash flow reports

Year End Preparation

Reconciling books for tax season

Collaborating with accountants for year end reporting

4 Tools and Software for Canadian Bookkeepers

Cloud accounting software makes it easier to manage multiple clients efficiently. Recommended tools include:

QuickBooks Online Canada

Xero

Zoho Books

Hubdoc for document collection

Dext for receipt scanning

Wagepoint or PaymentEvolution for Canadian payroll

TaxCycle or Profile for tax preparation support
 

5 How OBG Outsourcing Supports Bookkeeping Businesses in Canada

OBG Outsourcing partners with Canadian bookkeepers and accounting firms to help scale their operations and reduce internal workload. Whether you are starting solo or running a full team, we provide backend support so you can focus on client growth and service delivery.

Our support includes:

Data entry and transaction posting

Monthly reconciliation and reporting

Payroll processing and sales tax filings

Year end cleanup and accountant ready books

Software integration and automation support

We are familiar with Canadian accounting systems, CRA compliance, and bilingual reporting standards.

6 Conclusion

Starting a bookkeeping business in Canada is a rewarding opportunity with steady demand, scalable growth potential, and low startup costs. By offering reliable services, using modern tools, and partnering with the right support providers, you can build a sustainable business that helps Canadian entrepreneurs manage their finances with confidence.

OBG Outsourcing is here to help you grow faster and operate smarter. Whether you are launching a new bookkeeping business or looking to expand your team, we provide expert support tailored to Canadian bookkeeping standards.

Contact us today to learn more about how we can support your bookkeeping journey in Canada.

Tags: