Accounting vs Bookkeeping – What’s the Difference and Do You Need Both?
Bookkeeping and accounting may seem interchangeable, but they play very different roles in your business’s financial health. Knowing the difference helps you make smarter decisions and stay tax-ready.
Download Our Free Brochure →Accounting vs Bookkeeping: The Breakdown
What Is Bookkeeping?
Bookkeeping involves the consistent recording of financial transactions, such as:
- Income and expense logging
- Transaction categorization
- Bank reconciliation
- General ledger maintenance
It’s the foundation for clean, usable financial data.
What Is Accounting?
Accounting turns that data into insight:
- Financial reporting and analysis
- Budget creation and forecasting
- Tax planning and audit preparation
- Strategic business decisions
Accountants analyze what your bookkeeper records.
Real Test Case
A small consulting firm was manually recording revenue and expenses in spreadsheets. They switched to RemoteBooksOnline, gaining:
- Monthly reconciliations
- Budget vs actual tracking
- CPA-ready financials that helped them secure a line of credit
Federal & Tax Context
IRS Form 1120S and Schedule C both require accurate profit and loss reporting. While bookkeeping supports daily compliance, accounting ensures tax planning, depreciation schedules, and entity-level summaries are correct year-round.
Need both bookkeeping and accounting? See what’s included in our monthly accounting services.
Accounting Services Across States
Accounting Services Across Key ZIPs
Download Our Free Brochure →FAQs
Do I need both a bookkeeper and an accountant?
Yes—bookkeeping maintains your data, and accounting helps you interpret and act on it.
Can I just use QuickBooks for everything?
QuickBooks is a great tool, but it doesn’t replace the role of a professional bookkeeper or accountant.
What’s included in your accounting service?
We deliver monthly reconciliations, categorized transactions, and CPA-ready reports.
Let RemoteBooksOnline handle both your bookkeeping and accounting-so you can focus on running your business.
