What’s the Difference Between Accounting & Bookkeeping?
Many people believe Accounting and Bookkeeping are the same, but they serve different roles in your company's financial cycle.

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Bookkeeping is transactional and administrative, focusing on daily processes. It ensures that payments, invoices, and receipts are tracked accurately and efficiently. Bookkeepers manage day-to-day tasks such as:

• Recording daily payments and expenses.

• Managing accounts payable (AP) and accounts receivable (AR).

• Conducting monthly bank reconciliations.

• Processing payroll and filing government remittances (if qualified).

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Accounting, on the other hand, is more analytical and strategic. Accountants take the data prepared by bookkeepers to provide insights on business health and compliance. They help with:

• Preparing financial reports and statements.

• Conducting audits and adjusting entries.

• Reviewing data for compliance with CRA regulations.

• Analyzing operational costs and advising business owners.

Depending on your business size, you might need both bookkeepers and accountants, working together or independently to ensure your financial processes run smoothly.

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Is It a Bookkeeping Task or an Accounting Task?

Full Cycle Bookkeeping Task

Now most bookkeepers are incredibly capable and can often do Accounting Tasks, this is a basic lists of the Key Differences. 

• Record and categorize daily payments and expenses

• Manage the AP Functions and Print Cheques

• Send customer invoices and record payments received

• Manage the AR Functions and Collections

• Conduct Bank Reconciliation Monthly, if continuity not required, (as in having multiple Accounting members doing multiple functions to ensure Bank Rec is reviewed correctly)

• Process GST and appropriate provincial requirements

• Generate internal Management reports

• Process payroll if able and compliant to do so

• Process CRA Source Remittances if compliant to do so

• Provide and process T4 documents if compliant to do so

• Prepare Accounting Data set for the Accountant

• Provide a complete year end to Financial Accountant

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In House Accounting Task

When a Corporation has multiple roles, the crossover and distinction between Full Cycle and Accounting sometimes gets blurred.  

Further to any of the above Bookkeeping tasks, in House Accountants would

• Train and Mentor Accounting personnel, inclusive of Bookkeeper

• Would be senility trained in a certain industry to assist in overall l review and implementation of Accounting Software, datasets and more

• Would process a review of the dataset monthly and be the one processing all Chart of Account Reconciliations for review of Accounting Staff

• Would prepare adjusting entries

• Would prepare all CRA documentation

• Would monthly Analyze the costs of Operations and Financial statements

• Would likely be in Human Resources, or be cross trained in such processing and be a Payroll Practioner, more or be able to thoroughly review all Payroll data for compliancy 

• Would process the Bank Reconciliation monthly

• Would close off the monthly books and data set

• Would monitor cash flow and processing

• Would Advise Business Owners of financial decision making

• Occasional preform in-house Audits

• See Management Accounting

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External Accounting Tasks

Further to some of the Above Accounting Tasks. when hiring an External Accountant the Corporation is looking likely for a Review Engagement or a Compilation Engagement. See below. What is Financial Accounting. 

Tasks that would link back to the Corporation would be: 

• Analyze the costs of operations

• Review and analyze cost of Operations and Financial Statements

• Preform Audits if required

• Preform Cash flows if required

• Reviewing the Fiscal year and gathering, compiling and conversing with either the Bookkeeper or In House Accountant to provide the year -end Financials. 

• File Tax Returns, conduct tax planning and provide tax advisory functions for the corporation

• Create Financial Reports based on the required Corporation Engagement and T2 to CRA

• Prepare all adjusting entries to be given back to Bookkeeper or In-House Accountant

• Give financial and business advise to the Owners and Shareholders to the health of the Company and anything that they see during the type of Engagement in Service. 

• You're looking for a CPA Firm, a Certified Professional Accountant in Canada with their Designation. See Financial Accounting

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What is Management Accounting?

Management Accounting is typically an in house role and is often labelled as Controller, Financial Controller, Financial Manager, CFO and often this is a contracted role or parts are contracted assisting in preparing reports about business and operations that assist managers and owners make short and long term decisions about the growth and success if their business. 

 

Simply put, Accounting management is a very imperative role and assists all businesses in cost review identification, analysis, interpreting, and communication of the Accounting information to all areas of the Business from Owners and Shareholders, to Operation Managers, General Mangers and other managers to that the Corporation can achieve its business goals and growth, from: 

• Forecasting the future

• Aiding in decision making and insights on cost, production, internal data from CTC, to upcoming changes to ensure that the Corporation is able to make informed and strategic decisions at an empowering level. 

• Cashflow

• Performance variances

• Training and implementation of an Accounting Department

• Full Cycle review and Reconciliations

• Review and processing an Entire Accounting System and Software

• Knowing and understanding the inner workings of that Accounting And Software System 

• Reviewing and utilizing the internal management components inside the Accounting software to be able to properly manage, authorize, and process all data compiled inside the Software for reports, budgets, and statements. 

• Internal Reviews and processes

The individual that performs this role gathers all data that encompasses the Accounting System and creates readable information for the Management Teams of the Business to see the full picture of operations related to the costs of products, or services of the Corporations. 

This integral data is used to quantify the Business Plan and to execute all Operations.

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What is Financial Accounting?

This is a specialized branch of Accounting that keeps track of companies transactions using GAAP principals.

This typically would be your Corporations EXTERNAL Accountant.

Financial Accounting is taking the transactions that are posted and recorded, summarizing them, and presented in a financial report or statement. 

 

A Corporation depending on its size can have both INTERNAL and EXTERNAL Financial Accounting.

 

When referencing the Financial Reports and Statements, this is in reference to the Balance Sheet and Income Statements (Also known as Profit & Loss Statements).

 

This is typically done monthly and quarterly in the form of Internal Management Reports, however it is primarily the term used for Accountants that work for Firms that preform Year Ends, T2s and in turn provide Corporations. 

• Compilations (formally Notice to Reader) Financial Statements

A compilation Engagement is only suitable for internal use by management for limited use, such as income tax reporting. When a Corporation files its Corporate Taxes, firms that are completing them, will create a Compilation. No assurances are provided by the Accountant to the user for the Financial information and a CPA is not associated with the information, therefore has no reason to believe it to be misleading or incorrect. If this is the Financial Report chosen for a year end, and you deliver them to your bank, it is the responsibility of the lender and bank to ask questions and your RESPONSIBILITY to respond to your Lender's questions not the CPA or Financial Accountant that created the Compilation Engagement. 

For some this is suitable, for others the Review Engagement is better suited. 

•  Review 

When Financial Accountants are hired to process a Review of Financial Information, this provides the Corporation with the knowledge and assurances that a certain level of assurances where used to prepare and provide tot he Corporation a Financial Statement. 

The CPA creating these, will engage with the Corporation to prepare a review of the data set and financial information to provide some creditors, and lenders, new partners, or shareholders, or potentially new buyers of  your corporation some assurances to the data. 

• Audited 

Finally there are audited Financials, that compromise of an examination of the accounting records and other data supporting the creation of the financial statements. 

 

FOR ANY CORPORATION IT IS ALWASY BEST TO HIRE A FINANCIAL ACCOUNTANT, CPA, TO CREATE FINANCIAL STATEMENTS. There is a level of continuity and process, as well as peace of mind knowing that this was done correctly. It is NEVER in a Corporations best interests to have a Bookkeeper process your T2 for a 500.00 rate and send these out. Ensure you know and understand your Business growth. 

Use other Accountants, and specialties, in-house controllers to assist in giving you information, and then use an External Firm always to process. 

• You're looking for a Certified Professional Accountant in Canada with their Designation.

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If you're looking for a good firm, please inquire we have some great CPA's and Partners we use all the time. 

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What is Business Management?

 Business and Management are the disciplines devoted to Organizing, Analyzing, and Planning the necessary types of Business Operations.

 

Is it the same as Operation Management?

 No it is not the same. Business Management is still a function that falls within Accounting, however the position can be split to Operations or in part, a combination of both. 

Operations Management is the administration of business practices to create the highest level of efficiency possible within an organization. It is concerned with converting materials and labor into goods and services as efficiently as possible to maximize the profit of an organization.

 

What you get when you hire us as a Controller?

 Our Controller services offer Full-Cycle Accounting & Automation, ensuring every element of your financial process is handled professionally. Our Full-Cycle Bookkeeping services are completed by a qualified Controller or Accountant, providing the final layer of oversight to ensure the success of your accounting cycle.

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Need in-house help without the full-time overhead? We offer Outsourced CFO and Hire a Controller services.

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Need someone to manage your Accounting team? We can help. Whether you require support on a weekly, monthly, quarterly, or yearly basis, or a combination, we offer the expertise to manage your accounting and finances effectively.

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This service brings an objective, third-party perspective on your business, ensuring that every aspect of your financial management is optimized.

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Why choose us? We want to see your business succeed and grow. Our expertise spans Business Accounting, Finance, Management, Production, Planning, Reporting, and Workflow. With a holistic view of your business, we ensure it's more than just bookkeeping and data entry—we deliver an all-in-one solution with software integration that fits your business.

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Here’s what we offer (and if you don’t see what you need, contact us to discuss how we can meet your business needs):

• Business review and assessment

• Accounting data set review and internal controls analysis

• Strategy and forecasting to help meet your financial and business goals

• Cost-benefit analysis

• Process optimization and cost accounting

• Budget review and implementation

• Inventory management and review

• Financial transaction oversight

• Preparing post-closing trial balances and financial statements

• Asset entries and allocations, accruals, capital gains, and losses

• Preparing adjusting and closing entries

• Interim and financial management reports

• Contracts, employee agreements, and adjustment contracts

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We are solution-driven and have a proven track record of helping businesses like yours succeed. Whether you need short-term or long-term support, we’re ready to assist without impacting your bottom line.

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Flexible Packages for Your Unique Business Needs We offer hourly rates or monthly bundles tailored to your specific needs. Please book a free consultation so we can identify the best solutions for your business.

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If you're looking for Operations and Workflow Consulting, our Hire a CFO and Hire an Operations Manager services work seamlessly together to drive your business's success.

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We’ve bundled the essential tools into these two outsourcing services, building lessons and processes tailored to your business’s unique goals based on the principles of Efficiency, Effectiveness, and Continuous Improvement.

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You can choose to include our teaching and review in your package, or fully outsource these services to us.

A Controller plays a vital role in your company, acting as your in-house Accountant, combining Accounting Management and Financial Accounting to support your growth and success.

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