Compare accounting service levels for a small corporation
How bookkeeping, compilation, review, audit and tax-only services differ in what you receive, who uses them and what drives the price.
A Canadian corporation can buy accounting help at several levels. The rows below compare service types and delivery models, not firms or prices. Use the table to decide what you actually need: many small private corporations need only clean bookkeeping, a compilation and a T2, while a lender, franchisor or investor may require a review or audit. Fee differences come mostly from hours, which depend on transaction volume and how organized your records are.
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| Option | What you receive | Good for | Watch out for |
|---|---|---|---|
| Do-it-yourself bookkeeping in software | You enter or approve transactions and reconcile accounts; the accountant receives the file at year end | Owners with low transaction volume and the time and discipline to reconcile monthly | Errors found at year end are billed as clean-up; sales tax coding mistakes carry into returns |
| Independent bookkeeper (monthly) | Monthly entry, reconciliation and often GST/HST returns; no financial statement report | Corporations with steady volume that want the books current all year | Check who files sales tax returns and who is responsible for errors; not every bookkeeper is a CPA |
| Compilation engagement (CSRS 4200) | Financial statements compiled from your information with a compilation engagement report; no assurance | Most small private corporations filing a T2 where no lender requires more | It is not a check of your numbers; the old Notice to Reader no longer applies |
| Review engagement (CSRE 2400) | Limited assurance based on inquiry and analytical procedures, with a review engagement report | Corporations whose bank, landlord or franchisor asks for reviewed statements | Takes more hours than a compilation; confirm whether the lender truly requires it |
| Audit (Canadian Auditing Standards) | Reasonable assurance and an audit opinion on the financial statements | Larger companies, certain grant or contract requirements, investor or legal requirements | Highest cost and lead time; corporate statutes allow shareholders of private companies to waive an audit in many cases |
| T2 and slips only | Corporate tax return, schedules and slips prepared from financial statements you provide | Holding companies or very simple corporations with reliable year-end statements | The return is only as good as the statements behind it; schedules like the shareholder information still need care |
| Full-service monthly package | Bookkeeping, sales tax, payroll, year-end statements and T2 for one monthly fee | Owners who want predictable cost and one point of contact | Read what volume the fee assumes and what triggers extra billing |
| Software-led hybrid | You use bank feeds and receipt capture; a bookkeeper reviews monthly; the CPA does year end | Growing corporations with many small transactions | Automation rules can misclassify at scale; someone must still review and reconcile |
Engagement standards are set by the Auditing and Assurance Standards Board and published through CPA Canada and FRAS Canada. Who may perform compilation, review and audit engagements is regulated by each province's CPA body, so check with your provincial regulator, for example CPA Ontario or the Ordre des CPA du Québec. Whether an audit can be waived depends on your incorporating statute (the Canada Business Corporations Act or a provincial act). Tax filing rules come from the CRA and, in Quebec, Revenu Québec.