Bookkeeping vs. Accounting: What’s the Difference?
Understand the difference between bookkeeping services and accounting, what each service includes, and when small businesses need bookkeeping, accounting, or CPA support.
CPA-reviewed bookkeeping. Monthly reconciliations. QuickBooks & Xero support. Plans from $150/month.
What Is Bookkeeping?
Monthly 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:
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:
- Preparing and filing tax returns
- Performing audits and financial analysis
- Advising on financial decisions
- Ensuring GAAP or regulatory compliance
- Reviewing and interpreting the reports prepared by bookkeepers
Need Monthly Bookkeeping Support?
Monthly bookkeeping support starting at $150/month.
Do Small Businesses Need Bookkeeping or Accounting?
- 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 CPA-Reviewed Monthly Bookkeeping
Flat-rate monthly bookkeeping with CPA-reviewed financials and reconciliations.
Bookkeeping + Accounting = Better Together
At RemoteBooksOnline, we provide flat-rate, CPA-reviewed online bookkeeping services, and we work closely with your accountant or CPA firm. Whether you need catch-up bookkeeping, QuickBooks cleanup, or ongoing QuickBooks bookkeeping, Pricing we can help.
Frequently Asked Questions
Is a bookkeeper the same as an accountant?
No. Bookkeepers manage financial records and reconciliations, while accountants handle taxes, compliance, financial analysis, and strategy.
Can a bookkeeper do taxes?
Most bookkeeping services do not file taxes. Bookkeepers usually prepare organized financial records that accountants or CPAs use for tax filing.
Do I need both a bookkeeper and an accountant?
Yes. Many businesses use CPA bookkeeping for monthly reconciliations and reporting while relying on accountants for taxes and financial guidance.
What is more important for small businesses: bookkeeping or accounting?
Most small businesses need bookkeeping first because accurate bookkeeping creates the financial records accountants use for taxes and compliance.
How much does bookkeeping cost compared to accounting?
Bookkeeping usually costs less than accounting because bookkeeping focuses on monthly financial organization while accounting involves tax filing, compliance, and financial analysis.
Can bookkeeping help my accountant during tax season?
Yes. Accurate monthly bookkeeping helps accountants file taxes faster and reduces cleanup work during tax season.
Why Small Businesses Trust RemoteBooksOnline
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Trained in U.S. Accounting