Question 1

Are Accounting and Bookkeeping the same thing?

Accepted Answer

No, accounting and bookkeeping serve different roles in your company's financial cycle. Bookkeeping is transactional and administrative, focusing on day-to-day tasks like recording payments, managing accounts payable and receivable, conducting bank reconciliations, and processing payroll. It ensures that financial transactions are tracked accurately.

Accounting, on the other hand, is more analytical and strategic. Accountants use the data prepared by bookkeepers to provide insights on your business’s health, prepare financial reports, conduct audits, ensure compliance with CRA regulations, and advise on operational costs. Depending on the size of your business, you may need both bookkeepers and accountants to ensure smooth and efficient financial processes.

Question 2

What are the key differences between Bookkeeping, in-house Accounting, and external Accounting tasks?

Accepted Answer

Bookkeeping Tasks

Bookkeepers handle the day-to-day financial tasks, including:
Recording and categorizing daily payments and expenses
Managing accounts payable (AP) and printing cheques
Sending customer invoices and recording payments received
Managing accounts receivable (AR) and collections
Conducting bank reconciliations
Processing GST and provincial tax requirements
Generating internal management reports
Processing payroll, if qualified
Processing CRA source remittances and preparing T4s, if compliant
Preparing accounting data for accountants
Providing complete year-end financial data to accountants
In-House Accounting Tasks

In-house accountants typically manage more complex, analytical tasks, including:
Training and mentoring bookkeeping staff
Specializing in industry-specific accounting software and processes
Reviewing datasets monthly and reconciling chart of accounts
Preparing adjusting entries and CRA documentation
Analyzing operational costs and financial statements
Overseeing payroll compliance and HR processes
Performing monthly bank reconciliations and closing books
Monitoring cash flow and advising business owners on financial decisions
Occasionally performing in-house audits
External Accounting Tasks

External accountants typically handle higher-level, strategic functions, such as:
Performing audits and cash flow reviews
Preparing year-end financial statements and reports
Filing corporate tax returns, conducting tax planning, and offering tax advisory services
Reviewing the fiscal year with in-house accountants or bookkeepers to provide year-end adjustments
Offering business and financial advice based on financial health assessments
Conducting review or compilation engagements for the corporation

For external accounting, you're typically looking for a CPA firm, which provides certified professional accounting services, including tax filing and financial advisory functions.

Question 3

What services are included in Brio's Full-Cycle Bookkeeping?

Accepted Answer

Brio offers a comprehensive Full Cycle Bookkeeping solution that handles every aspect of your business’s financial processes.

This includes the accurate input and processing of all financial transactions, ensuring that payments, expenses, and receipts are recorded efficiently. We manage both Accounts Receivable (AR), tracking customer invoices and payments, and Accounts Payable (AP), handling vendor bills and timely payments to ensure smooth cash flow management.

Additionally, we focus on optimizing your bookkeeping workflows through automation and software integration. With expertise in over 9 different accounting platforms, including QuickBooks, Sage, and Xero, we help implement the best solutions for your business. Our services extend beyond just entering data, we ensure your financial processes are fully integrated with cloud-based software and supporting applications, enhancing workflow efficiency, reducing manual effort, and promoting real-time financial visibility.
From the day-to-day transaction management to strategic financial planning, Brio’s Full-Cycle Bookkeeping ensures that every element of your business’s financial health is accounted for, allowing you to focus on growth and decision-making.

Question 4

What is Full-Cycle Accounting?

Accepted Answer

Full Cycle Accounting refers to the complete accounting process from the moment a Financial transaction occurs until it is reflected in financial reporting. 
This includes Accounts Payable, Accounts Receivable, Bank Reconciliations, Payroll integration, Journal Entries, Month-End procedures, Financial Reporting, and year-end preparation.

At BRIO, Full Cycle Accounting means more than simply recording transactions. 
We ensure Financial information is accurate, organized, and meaningful so Business owners can make informed decisions with confidence.

Question 5

How often should my Bookkeeping be updated?

Accepted Answer

Most businesses should update Bookkeeping monthly at a minimum. 
Growing businesses often benefit from weekly or even daily Bookkeeping to maintain visibility into cash flow, profitability, and operational performance.

Question 6

Why are reconciliations important?

Accepted Answer

Bank, credit card, loan, and balance sheet reconciliations ensure your financial records accurately reflect reality. 
Reconciliations help identify errors, missing transactions, fraud risks, and reporting inconsistencies before they become larger issues
It is highly suggested that all Asset and Liability Accounts be reconciled monthly to ensure errors and corrections are identified and month-ends can be properly closed and any required remittances be processed.

Question 7

What happens if my Bookkeeping is behind?

Accepted Answer

Falling behind on Bookkeeping can impact Tax filings, Payroll accuracy, Reporting, Financing opportunities, and decision making. 
BRIO regularly assists businesses with catch-up Bookkeeping, historical cleanup, and Accounting recovery projects.

Question 8

How do I know if my Financial Reports are accurate?

Accepted Answer

Accurate Reporting depends on complete Bookkeeping, Proper Reconciliations, Payroll integration, and consistent Accounting processes. 
BRIO reviews Financial data, Internal Controls, and Reporting structures to ensure information can be relied upon for decision making.

Question 9

What Accounting software does Brio use and recommend?

Accepted Answer

We are certified in over 9 different Accounting software platforms and specialize in QuickBooks, Sage, and Xero. 
We offer training and implementation programs for these platforms to help businesses automate workflows and integrate cloud-based solutions.

Our expertise allows us to streamline your Bookkeeping using the best software for your needs.

Question 10

Does BRIO handle Payroll and HR management?

Accepted Answer

Yes, we have Certified Payroll Practitioners on staff and are in good standing with the National Payroll Institution.

We stay current on payroll regulations to ensure accuracy. Additionally, we offer templates and resources to support your business’s payroll and HR functions, utilizing cloud portals, CRM systems, and other integrations for seamless management.

Question 11

How does Brio assist with CRA remittances and filings?

Accepted Answer

We ensure all CRA remittances (monthly, quarterly, and yearly) are filed correctly, including source deductions, GST, PST, WCB, NR4s, T4s, T4As, T5s, T2200s, and more.

We can file on your behalf or guide you through the process. Our team stays up to date on any changes to CRA requirements, ensuring compliance and timely filings for your business.

Confidence begins with clarity.

Frequently asked questions