If you have been googling bookkeeper prices in Ontario, you have probably noticed the range is enormous. Some bookkeepers charge $30 an hour. Others charge $800 a month. A few CPA firms charge $2,000 a month or more. So what explains the difference, and what should you actually be paying?
The answer depends entirely on what you are buying. Not all bookkeeping is the same, and the price difference almost always reflects a real difference in what you get.
The Three Tiers of Bookkeeping in Ontario
Tier 1: DIY or Cheap Bookkeeper ($0 to $200 per month)
At this level you are either doing it yourself with QuickBooks or Wave, or you have hired someone charging $25 to $40 an hour on a part-time basis. The risk is not the price. It is the gap between what gets done and what should get done.
Transactions get miscategorized. HST gets missed. Deductions get left on the table because nobody is looking for them. At tax time your accountant spends extra hours cleaning up the mess, which costs you more than if you had done it right from the start.
Tier 2: Professional Bookkeeping Service ($300 to $700 per month)
This is where most incorporated service professionals land. At this price point you get monthly reconciliation, proper categorization, someone who knows what they are doing, and often HST filing included. For most Ontario businesses earning $100,000 to $500,000 per year, this is the right tier.
At Featherly, bookkeeping starts at $500 per month for incorporated Ontario businesses. That includes monthly reconciliation, financial statements, HST tracking, and year-round access to a CPA.
Tier 3: Full-Service CPA Firm ($1,000 or more per month)
If your business has significant complexity, multiple entities, employees, or you need CFO-level advisory, you are looking at $1,000 to $3,000 a month or more. Most small service businesses do not need this level until they are past $1 million in annual revenue.
What Drives the Price?
Bookkeeping costs in Ontario are driven by a few key factors:
- Volume of transactions — more transactions means more time
- Industry complexity — a dental practice has different requirements than a freelance consultant
- Whether your books are current or need catch-up work
- Whether HST filing is included in the monthly fee
- Whether the bookkeeper is a CPA or an unlicensed bookkeeper
CPA vs. Unlicensed Bookkeeper: Does It Matter?
Yes, significantly. A Certified Professional Accountant registered with CPA Ontario is held to professional standards, carries liability insurance, and can do things an unlicensed bookkeeper cannot — including filing your T2 corporate tax return and providing real tax advice.
An unlicensed bookkeeper can categorize your transactions. They cannot tell you whether your salary and dividend split is optimized, whether your corporate structure makes sense, or whether you are missing industry-specific deductions. That distinction costs or saves incorporated professionals thousands of dollars every year.
Questions to Ask Before Hiring a Bookkeeper
- Are you CPA registered?
- Do you specialize in my type of business?
- What is included in the monthly fee?
- Do you handle HST filing?
- Will you do my T2 corporate return, or do I need a separate accountant for that?
The Real Cost of Cheap Bookkeeping
The cheapest bookkeeper is rarely the cheapest option when you calculate the full picture. Missed deductions alone typically cost incorporated professionals $2,000 to $6,000 per year. That is before you factor in HST errors, late filing penalties, and the time you spend personally dealing with the fallout.
The right bookkeeper pays for itself. The wrong one costs you more than their fee.
Have questions about your specific situation? Book a free 20-minute intro call with Featherly. We work exclusively with incorporated service professionals in Ontario.