Do I Need a Bookkeeper or an Accountant?
If you’re trying to manage your business finances, chances are you’ve wondered whether you need a bookkeeper, an accountant – or both. While they’re often used interchangeably, bookkeepers and accountants play very different roles in your financial ecosystem.
Download Our Free Brochure →This guide will help you understand the difference, when to hire each, and how to build the right financial support system for your business.
What’s the Difference Between a Bookkeeper and an Accountant?
Bookkeeper
Handles the daily tracking of your business transactions – income, expenses, bank reconciliation, and reporting.
Key duties include:
- Categorizing transactions
- Reconciling accounts
- Generating P&L, Balance Sheet, and Cash Flow reports
- Managing A/R and A/P
- Recording payroll and sales tax
- Preparing books for tax time
Learn more about RemoteBooksOnline’s monthly bookkeeping services.
Accountant
Provides financial analysis, compliance, and tax planning based on the records kept by your bookkeeper.
Key duties include:
Download Our Free Brochure →- Preparing and filing tax returns
- Offering tax strategy and planning
- Conducting audits or reviews
- Advising on legal structure and deductions
- Preparing financial forecasts or loan documents
When Do You Need a Bookkeeper?
- You’re behind on your books or reconciling accounts
- You want accurate monthly reports to make decisions
- You’re preparing for tax season and want CPA-ready records
- You don’t have time to manage invoices, bills, and receipts
- You need to catch up or clean up your books
Outsource to a professional service like RemoteBooksOnline with flat-rate pricing, starting at just $150/month.
When Do You Need an Accountant?
- You’re preparing your business or personal tax returns
- You want proactive tax planning or strategy
- You need help with financial statements for funding or grants
- Your business structure or compliance needs are changing
- You want long-term planning for growth or succession
Can One Replace the Other?
No. A bookkeeper and accountant complement each other. Bookkeepers handle the day-to-day, while accountants interpret the data to guide long-term decisions.
Many business owners outsource bookkeeping and work with a CPA only at year-end – a model that saves time and money while ensuring tax compliance.
Test Case: Coaching Business Uses Both for Maximum Efficiency
Business: Executive coaching firm with monthly recurring revenue
Challenge: Owner tried using only a CPA once per year, leading to missed deductions and tax prep delays.
Solution: Engaged RemoteBooksOnline for monthly bookkeeping and retained CPA only for tax filing.
Results:
- Clean monthly reports and reconciliations
- CPA received fully organized records at tax time
- Owner now focuses on scaling with full financial visibility
Frequently Asked Questions
Can I start with a bookkeeper and add an accountant later?
Yes – this is the most common approach for small businesses.
Does RemoteBooksOnline offer tax services?
We provide CPA-ready books but do not file taxes. Many of our clients work with their existing CPA or tax preparer.
How much does a bookkeeper cost?
Flat-rate bookkeeping starts at $150/month with RemoteBooksOnline – far less than most hourly accountants.
Do I need both year-round?
Most businesses benefit from monthly bookkeeping and only use an accountant at tax time or for strategic events.
Bookkeeper or Accountant? Start With the Right Foundation.
The truth is, you need both – but not at the same time. Let RemoteBooksOnline manage your books all year so your accountant can do their best work at tax time.
