Bookkeeper vs Accountant vs CPA: Who Do You Actually Need?
Not Every Financial Role Is the Same
If you’ve ever wondered whether to hire a bookkeeper, an accountant, or a CPA, you’re not alone.
They all touch your numbers-but at different depths, and at different prices.
Knowing the difference saves you money and keeps your business compliant.
Quick Snapshot
| Role | Focus | Typical Tasks | Monthly Cost |
|---|---|---|---|
| Bookkeeper | Daily/Monthly records | Reconciliations, categorization, reports | $250-$900 |
| Accountant | Analysis & adjustments | Journal entries, accruals, statements | $1,000-$2,500 |
| CPA | Tax & assurance | Filing, audits, advisory | $2,000-$5,000+ |
Rule of thumb: Bookkeepers handle the data, accountants refine the data, CPAs certify the results.
Want to Hire a Bookkeeper instead? →
1. What a Bookkeeper Does
Bookkeepers are the frontline operators-they make sure every dollar flowing in or out of your business is properly recorded, categorized, and reconciled.
- Record transactions in QuickBooks or Xero
- Reconcile bank/credit card accounts monthly
- Maintain AR/AP aging
- Produce P&L, Balance Sheet, Cash Flow
- Prepare month-end close packs
- Support your CPA during tax season
Perfect for: small-to-midsize businesses that need clean monthly financials and audit-ready books.
See how Monthly Bookkeeping Services handle this start-to-finish.
2. What an Accountant Does
Accountants are the bridge between bookkeepers and CPAs.
They interpret your data, make adjusting entries, and prepare higher-level financial statements for management and tax prep.
Core responsibilities:
- Prepare adjusting & closing journal entries
- Review financials for accuracy & consistency
- Analyze variances and profitability
- Create custom reporting (budgets, forecasts)
- Work directly with bookkeepers to prep for taxes
When to add one:
- If you need management reporting
- If your CPA complains about recurring issues
- If you’re scaling past $1M+ annual revenue
Learn how Outsourced Bookkeeping can include accountant-level review at a lower cost.
3. What a CPA Does
CPAs (Certified Public Accountants) are licensed professionals focused on compliance, tax strategy, and assurance.
You don’t need one full-time-but you do need one on your team for year-end filings and audits.
Core responsibilities:
- Prepare and file tax returns
- Certify audited or reviewed financial statements
- Represent clients before the IRS
- Advise on entity setup, mergers, and valuation
- Design tax strategies and compliance policies
Use a CPA when:
- You’re filing multi-state or corporate taxes
- You need audited or reviewed statements
- You’re selling, acquiring, or fundraising
How They Work Together (Ideal Flow)
| Step | Role | Outcome |
|---|---|---|
| 1. Transaction Recording | Bookkeeper | Clean data entry & reconciliation |
| 2. Adjustments & Analysis | Accountant | Accurate financial statements |
| 3. Filing & Strategy | CPA | Tax compliance & optimization |
That’s the RBO model: Bookkeeper + CPA oversight, automated monthly.
See: Flat-Rate Monthly Bookkeeping
Cost Comparison (2025)
| Service Type | In-House | Outsourced (RBO Flat-Rate) |
|---|---|---|
| Bookkeeping | $45–$70k/yr | $250–$900/mo |
| Accounting | $65–$90k/yr | $1,000–$2,000/mo |
| CPA Tax Prep | $2,000–$6,000/yr | $600–$1,200 per return |
With automation + CPA-reviewed systems, you get bookkeeper + accountant coverage at bookkeeper-level pricing.
Compare costs in Monthly vs Quarterly Bookkeeping.
Which One Do You Need Right Now?
| Situation | Best Fit |
|---|---|
| You’re behind on reconciliations | Bookkeeper |
| You want to analyze margins or budgets | Accountant |
| You need tax filing or audit support | CPA |
| You want all three for less | Flat-rate monthly plan |
Start with a bookkeeper, grow into an accountant, and retain a CPA for strategy.
FAQs
Do I need all three at once?
Not always. Most SMBs start with bookkeeping + CPA review. Add an accountant once you’re scaling or managing inventory.
Can one person do all three jobs?
Rarely. Bookkeepers focus on detail; CPAs focus on compliance. Combining them often leads to burnout or errors.
Is outsourcing better than hiring internally?
For 80 % of SMBs, yes-outsourced bookkeeping + CPA review is cheaper, faster, and more secure.
How often should my CPA review my books?
At least quarterly, ideally after every monthly close cycle.
Can AI replace bookkeepers or accountants?
Not fully-AI automates the repetitive parts. See AI-Powered Monthly Bookkeeping → for details.
You don’t need a full finance department-just the right layers.
Start with monthly bookkeeping; add CPA oversight only when it pays back.
See Monthly Plans → Affordable Bookkeeping → Talk to a Specialist →
