Bookkeeping, Accounting, and Controllership: What’s the Difference?

Running a business is a wild ride—one minute, you’re celebrating a big sale, and the next, you’re knee-deep in financial statements wondering where all your money went. You’ve probably heard terms like bookkeeping, accounting, and controllership, but what do they actually mean? And more importantly, when do you need them? Let’s break it down in plain English.

Bookkeeping: The Financial Organizer

What It Is: Bookkeeping is all about keeping track of your financial transactions—every dollar in and out. This is who you will be managing your receipts and making sure things are in order for your accountant. It could also include HST preparation, running payroll, etc. While bookkeepers do a great job at these tasks, they aren’t trained to offer tax strategies or deep financial insights.

When You Need It: If money is moving through your business, you need a bookkeeper. It’s that simple. Having clean records makes tax time less of a nightmare and helps you stay on top of cash flow. However, relying only on a bookkeeper can leave gaps in tax planning and financial strategy if your business is larger.

What It Costs: You can expect to pay anywhere from $100 to $1,000 per month, depending on how many transactions you have.

Accounting: The Big Picture Thinker

What It Is: Accounting takes your bookkeeping data and turns it into meaningful insights. It’s about tax planning, financial reporting, and helping you make smart money moves. A great accountant will save you more money than they cost by optimizing your taxes and ensuring compliance with regulations. An accountant takes the bookkeeper's work and provides value to you, the business owner.

When You Need It: As soon as your business becomes more than just a hobby, an accountant is your best friend. Bookkeeping alone won’t help you strategize, minimize taxes, or analyze financial performance—this is where proper accounting comes in.

What It Costs: Typically, $500 to $2000 per month, depending on complexity and business size. But think of it as an investment—proper accounting can save you thousands in taxes and financial missteps.

Controllership: The Financial Boss That Drives Growth

What It Is: A controller keeps your financial house in order, making sure reports are accurate and helping steer your company toward financial success. Think of it as a part-time CFO, ensuring you have strong financial management in place. These rolls are often filled by experienced CPAs.

When You Need It: If you’re growing fast, dealing with investors or banks, or managing multiple revenue streams, a controller helps keep things running smoothly. Bookkeeping and accounting alone won’t cut it at this stage—you need high-level financial strategy and oversight.

What It Costs: A fractional controller runs $2,000 to $8,000 per month, while a full-time controller can be $100,000+ per year.

So, Who Do You Need?

• Just starting out? A bookkeeper is your go-to, but don’t stop there—ensure an accountant reviews your finances.

  
  

• Business is picking up? Bring in an accountant to make sure you’re maximizing tax savings, staying compliant, AND getting the financial insights you need to make smart decisions. If you a small to medium sized business (less than $2,000,000 annual sales), you should definitely have a strong accounting backbone in your business.

  
  

• Scaling fast? A controller is essential to provide financial leadership and keep everything on track. If your business is doing more than 2 million in annual sales, or if you have a 'team' of finance folks already, I'd highly recommend having a CPA added into the mix to help ensure things are optimized.

The right financial support at the right time can make all the difference. If you’re serious about growing your business the right way, our accounting services can help. Let’s chat and see how we can set you up for financial success!