FAQ

What is the difference between a Bookkeeper and an Accountant?

Bookkeeper

  • Develops systems to establish a chart of accounts.
  • Review and posts information to an accounting software from source documents
  • Reconciles all accounts, including bank statements, at the end of a specified period to ensure their accuracy.
  • Prepares reports for a specified period
  • Maintains historical records by filing documents
  • Complies with federal and provincial requirements
  • Files GST
  • Produces T4s for employees
  • Communicates with the CRA on behalf of clients
  • Prepares year end documents for the accountant

Accountant

  • Prepares a company‚Äôs documents, according to the law, at the end of the year to be sent to the CRA.

What is a source document?

A source document is an original record (document) that contains the details of a transaction that substantiates the information entering into the accounting system.

What does it mean to reconcile accounts?

To reconcile an account means to compare two sets of records to ensure that they are accurate and in agreement.  One set of records is normally a bank statement.  This ensures that money leaving the account matches the amount of money that is spent.

What is a chart of accounts?

A chart of account is a financial tool that provides a complete list of every account in an accounting system.  Each account is the unique record for each type of asset, liability, equity, revenue, and expense.

What is an accounting system?

An accounting system is a system that collects, stores and processes financial and accounting data. It is generally a computer based system.