Introduction

In Quebec, many entrepreneurs wonder whether they should entrust their finances to a general accountant or a CPA. Although both can offer accounting services, the responsibilities, skills, legal obligations, and quality of work differ significantly. Making the wrong choice can lead to tax errors, non-compliant financial statements, or significant monetary losses. This guide clarifies the differences between a CPA and an accountant, and explains how to choose the resource that best meets your business needs.

Legal and Regulatory Framework

The title of CPA (Chartered Professional Accountant) is protected by law in Quebec. The CPA is governed by:
• The Order of CPAs of Quebec
• The Code of Ethics of CPAs
• The Professional Standards in audit, review, and compilation
• The obligations for continuing education
• A strict disciplinary system

In contrast, the term “accountant” is not a protected title. Anyone can offer accounting services, even without formal training.

In practice:
• Only CPAs can sign audited or reviewed financial statements
• Only CPAs can provide professional services requiring specific standards
• CPAs are legally responsible for the quality and compliance of their work

Important Court Decisions

The courts have ruled that:
• Errors made by non-CPAs have resulted in tax penalties for businesses that believed they were well served
• Business owners remain responsible for the mistakes of their unregulated accountants
• CPAs have a legal duty of competency and diligence that non-CPAs are not required to uphold
• In cases of tax disputes or adjustments, only professional opinions based on CPA standards are considered reliable

These decisions confirm the importance of choosing a qualified professional.

Why Quebec Businesses Must Carefully Evaluate Their Choice

The CRA and Revenue Quebec frequently see errors arising from files maintained by uncertified accountants, including:
• Incorrect application of GST/QST
• Late or erroneous filings
• Incorrect handling of expenses or assets
• Non-compliant financial statements
• Lack of adequate documentation
• Poor advice on provisional payments
These errors lead to audits, penalties, and sometimes even loss of funding.

CPA vs Accountant: The Key Differences for Your Business

1. Level of Education and Certification

• CPA: university education, standardized exams, mandatory continuing education.
• Accountant: variable training, sometimes self-taught.

2. Professional Standards

• CPA: must adhere to strict standards (audit, review, compilation, taxation).
• Accountant: no legal obligation to adhere to professional standards.

3. Legal Responsibility

• CPA: regulated professional liability, mandatory insurance.
• Accountant: personal liability, more limited protection for the client.

4. Types of Authorized Engagements

• CPA: audits, reviews, compilations, official financial statements, certification.
• Accountant: bookkeeping, simple returns, informal reports.

5. Quality and Reliability of Services

The CPA is held to a much higher level of diligence, competence, and compliance.

6. Support in Case of Audit

• A CPA represents the business before the CRA and RQ in a structured and compliant manner.
• An uncertified accountant may not know the necessary procedures.

Mackisen Strategy

At Mackisen CPA Montreal, we help business owners to:
• Assess their actual accounting needs
• Choose the right solution between accountant, technician, and CPA
• Produce financial statements that comply with standards
• Avoid costly tax errors
• Structure their accounting to support growth
• Obtain expert assistance in tax audits
• Receive accurate and reliable advice

We offer a full-service range from bookkeeping to auditing, including taxation, budgeting, payroll, and financial management.

Real Customer Experience

A Montreal SME entrusted its declarations to an uncertified accountant. Result: GST/QST errors, rejected expenses, and a surprise assessment. We corrected four years of declarations, negotiated penalties, and implemented compliant accounting.
Another client needed financial statements for a bank funding request; only statements prepared by a CPA were accepted by the financial institution.

Frequently Asked Questions

Is an accountant sufficient for a small business?

Yes, as long as they are competent — but a CPA offers greater security and compliance.

When do I absolutely need a CPA?

For audits, reviews, compilations, financing, tax audits, advanced planning.

Are CPA fees really higher?

Not necessarily. The cost of a tax error is often much more significant.

Can a CPA also do bookkeeping?

Yes, a CPA can supervise or perform bookkeeping while ensuring compliance and quality.

Why Mackisen

With over 35 years of combined experience, Mackisen CPA Montreal assists Quebec SMEs in all their accounting and tax obligations. We offer expertise, compliance, security, and a high level of professionalism.