Bookkeeping vs. Accounting: What’s the Difference?
Understand the roles, responsibilities, and when your business needs a bookkeeper, an accountant-or both.
What Is Bookkeeping?
Bookkeeping is the process of recording day-to-day financial transactions. A bookkeeper tracks income and expenses, categorizes transactions, and prepares financial reports like balance sheets and profit & loss statements.
Typical bookkeeping tasks include:
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Categorizing income and expenses - Reconciling bank and credit card statements
- Recording invoices and payments
- Generating monthly financial reports
- Assisting with software like QuickBooks or Xero
What Is Accounting?
Accounting is the process of analyzing, interpreting, and reporting financial data—usually for tax, compliance, and strategy.
Typical accounting tasks include:
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Preparing and filing tax returns
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Performing audits and financial analysis
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Advising on financial decisions
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Ensuring GAAP or regulatory compliance
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Reviewing and interpreting the reports prepared by bookkeepers
Get Your First Month of Bookkeeping Free
We’ll reconcile one full month of your books at no cost. No contracts. No setup fees. CPA-reviewed.
Key Differences Between Bookkeeping and Accounting
| Feature | Bookkeeping | Accounting |
|---|---|---|
| Focus | Record-keeping & data entry | Analysis, strategy, compliance |
| Credentials Needed | None required | CPA or EA preferred |
| Tools Used | QuickBooks, Xero, spreadsheets | Tax software, analytics tools |
| Reports Produced | P&L, balance sheet, ledgers | Financial statements, audit docs |
| Direct Tax Filing | No | Yes |
Do You Need a Bookkeeper or an Accountant?
- Startups and small businesses usually start with a bookkeeper
- Businesses with complex tax needs or audits need an accountant
- Many companies use both: a bookkeeper for daily tasks, an accountant for taxes and advice
Get Your First Month of Bookkeeping Free
We’ll reconcile one full month of your books at no cost. No contracts. No setup fees. CPA-reviewed.
Bookkeeping + Accounting = Better Together
At RemoteBooksOnline, we provide flat-rate, CPA-reviewed bookkeeping, and we work closely with your accountant or CPA firm. Whether you’re just getting started or need to clean up your books, we can help.
Frequently Asked Questions
Is a bookkeeper the same as an accountant?
No. Bookkeepers record and organize financial data. Accountants interpret that data, provide tax guidance, and file returns.
Can a bookkeeper do taxes?
Most cannot. Taxes are typically handled by CPAs or accountants. Bookkeepers support them with clean financial records.
Do I need both a bookkeeper and an accountant?
Many businesses use both. A bookkeeper manages day-to-day records; an accountant handles taxes and financial strategy.
Why Small Businesses Trust Remote Books Online
BBB Accredited 
Serving 5,000+ Businesses 
Trained in U.S. Accounting