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Bookkeeping is the backbone of any successful small business. It isn’t just about tax compliance or keeping the CRA happy; it is about understanding how your business is positioned for growth, ensuring you are profitable, and managing your cash flow effectively.
However, there is a surprising fact about the industry: There are currently no restrictions in Canada on who can call themselves a bookkeeper or an accountant.
Because the industry is unregulated, anyone can claim the title, regardless of their training. That makes vetting your financial partner incredibly important. If you ask any business owner who has experienced a “bad bookkeeper,” they will tell you how costly that mistake can be.
If you are looking for a new bookkeeper, here are the five essential questions you need to ask to ensure your business is in safe hands.
1. What are your credentials and education?
Many bookkeepers will tout software certifications (like being a Certified ProAdvisor for QuickBooks). While these are good, they often only prove that the person knows how to use the software—not that they understand accounting principles.
You need to dig deeper. Ask about their formal education (college or university courses) and, most importantly, look for a CPB (Certified Professional Bookkeeper) designation.
Why the CPB designation matters:
- Proctored Exams: It requires passing a comprehensive exam that tests college-level bookkeeping knowledge, not just software clicks.
- Verified Experience: Candidates must provide reference letters verifying at least three years of experience.
- Accountability: As members of CPB Canada, they are held to a code of ethics. If there is a complaint, there is a governing body you can reach out to.
2. Who is actually doing the work? (And where?) What is your backup plan?
In the modern accounting world, it is becoming increasingly common for firms to subcontract or outsource work overseas to cut costs. You need to know exactly who has eyes on your sensitive financial data.
Ask them directly: “Do you subcontract or outsource this work?”
At Just Ask Sam, for example, we never outsource. All work is completed by our internal employees and never leaves the country. You deserve to know that your financial data stays local and secure.
What happens if your bookkeeper gets sick, goes on vacation, or has a personal emergency right before a tax deadline?
If you are hiring a solo freelancer, this is a major risk. If you are hiring a firm, ask them about their coverage policy. There should always be someone capable of stepping in to ensure your work gets done and deadlines are met, regardless of individual circumstances.
3. What is your experience and reputation?
This seems obvious, but it is often overlooked. Ask about their years in business and request proof of their track record.
- Check Reviews: A lack of reviews or poor reviews is a massive red flag.
- Request References: Any reputable bookkeeper should be able to provide current clients who can vouch for their experience and the quality of their work.
4. What systems do you have in place?
Professionalism is defined by the systems a business uses to protect its clients.
Systems: Ask how they handle secure documents. Sending sensitive tax info via standard email isn’t enough anymore. They should have secure portals for document sharing and internal workflow systems to ensure deadlines are never missed.
5. Do you have insurance?
Never hire a financial professional who isn’t insured. At a minimum, they should carry:
- General Liability: Standard business protection.
- Errors and Omissions (E&O): Protects you if they make a mistake in your books.
- Cybersecurity Insurance: Essential in the digital age to protect against data breaches.
The Bottom Line
Your bookkeeper is a partner in your business’s growth. Because the Canadian landscape allows anyone to use the title, the burden of verification falls on you, the business owner.
Don’t be afraid to ask the hard questions. A professional bookkeeper will be happy to show you their CPB designation, explain their security systems, and introduce you to the local team handling your file.
Looking for a bookkeeping team that checks all the boxes? At Just Ask Sam, we prioritize education, security, and local expertise. If you have questions about how we address these criteria, feel free to reach out to us today.