Bookkeeper vs. Accountant: What’s the Difference?
Small business owners often ask: “Do I need a bookkeeper or an accountant?” While the terms are sometimes used interchangeably, the two roles are distinct. Choosing correctly can save you time, money, and stress.
What Does a Bookkeeper Do?
- Categorize and record daily transactions
- Reconcile bank and credit card accounts
- Manage QuickBooks or Xero setup
- Provide monthly financial reports
What Does an Accountant Do?
- Create adjusting entries and complex reports
- Handle audits and compliance
- Prepare tax returns and tax strategy
- Advise on financial forecasting
Cost Comparison: Bookkeeping vs. Accounting
- Bookkeeping Services: Flat-rate pricing from $150–$375/month, software included.
- Accounting Services: Often hourly ($150–$400/hr) or project-based for tax and audits.
When Should You Use Both?
- Daily/Monthly: Bookkeeper
- Quarterly/Annually: CPA/Accountant
- Together, you get accurate books plus compliance coverage.
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FAQs
Can a bookkeeper replace a CPA?
No. Bookkeepers ensure accuracy of day-to-day books; CPAs handle complex tax and compliance.
Is bookkeeping cheaper than accounting?
Yes. Bookkeeping is flat-rate, while accounting often charges hourly. Most businesses use both strategically.
