Quick answer: A bookkeeper records and reconciles your day to day transactions so your books are accurate. An accountant uses those books to prepare tax returns, review the numbers and advise you on decisions. Most small businesses need both kinds of work, and outsourcing them together usually costs far less than hiring staff.
The two titles get used as if they mean the same thing. They overlap, but knowing where one job ends and the other begins helps you hire the right help and avoid paying for more than you need.
The difference at a glance
| Bookkeeper | Accountant | |
|---|---|---|
| Main job | Record and organize transactions | Interpret the numbers, file taxes and advise |
| How often | Weekly or monthly | Quarterly, yearly and when big decisions come up |
| Typical output | Reconciled accounts, profit and loss, balance sheet | Tax returns, adjusted financial statements, tax plans |
| Looks | Backward: what already happened | Forward: what to do next |
| Education | No degree required; certificates are optional | Usually a bachelor's degree in accounting |
| BLS median pay (May 2025) | $50,670 a year ($24.36 an hour) | $83,680 a year ($40.23 an hour) |
Pay figures come from the U.S. Bureau of Labor Statistics Occupational Outlook Handbook. They show what employees earn, not what a firm charges.
What a bookkeeper does (and does not do)
- Records income and expenses and puts each one in the right category
- Reconciles bank, credit card and loan accounts every month
- Tracks what customers owe you (receivables) and what you owe vendors (payables)
- Records payroll and keeps documents organized for tax time
- Sends monthly reports such as a profit and loss statement and a balance sheet
A bookkeeper generally does not choose your tax strategy, sign your tax return or tell you whether to become an S corp. Those decisions sit on the accounting side.
Why it matters: Accurate books are the foundation. Without them, every tax return and business decision is built on guesses.
What an accountant does
- Reviews the books and makes year end adjusting entries, such as depreciation
- Prepares business and personal tax returns
- Plans ahead to lower taxes, including estimated payments and owner pay
- Advises on business structure, loans, budgets and big purchases
- Explains what the numbers mean, such as why profit is up but cash is down
Not sure whether your reports should use cash or accrual? That is a classic accounting question. See cash vs accrual accounting.
How bookkeepers and accountants work together
Think of it as a relay. The bookkeeper keeps the numbers current all year, then hands clean books to the accountant at tax time. When both sit at the same firm, nothing gets lost in the handoff.
Training, certifications and licenses
In most states, anyone can call themselves a bookkeeper or an accountant. Credentials tell you more:
- Bookkeeper certificates such as the Certified Bookkeeper (CB) or Certified Professional Bookkeeper (CPB) are optional and show tested knowledge.
- QuickBooks ProAdvisor certification shows training in QuickBooks Online.
- Certified public accountants are licensed by a state board of accountancy after passing a national exam and meeting education and experience rules. Only licensed firms can issue audited or reviewed financial statements.
- Paid tax preparers of any title must have a PTIN from the IRS.
Good to know: Most small businesses do not need audited statements. You usually need one only when a lender, investor, government agency or grant requires it.
Which one do you need?
| Your situation | What you need |
|---|---|
| Books are behind or messy | A bookkeeper, starting with a cleanup |
| Books are current and taxes are due | An accountant or tax preparer |
| Growing fast and unsure about taxes | Both, working from the same books |
| Thinking about an S corp or hiring employees | Accounting advice, then payroll and bookkeeping |
| A lender requires audited or reviewed statements | A licensed certified public accountant firm |
For most small businesses, the simplest answer is one team that does both, so the books and the return always match.
How much does a bookkeeper cost per month?
You can pay for bookkeeping three ways:
- A staff bookkeeper: salary plus benefits and payroll taxes. BLS data show benefits make up roughly 30% of total pay costs for private employers.
- Hourly freelance help: simple to start, but the monthly bill changes with the work.
- An outsourced monthly plan: a flat fee based on your transactions, accounts and payroll.
Our monthly plans start at $350, $750 and $995, depending on the size and activity of your business, and quarterly bookkeeping is available at 75% of the monthly rate. See our pricing page for what each plan includes.
Behind on your books?: If your books are behind, expect a one time cleanup before monthly work begins. It is quoted separately based on how many months need work. Learn about bookkeeping cleanup.
How much does an accountant cost?
Most small businesses pay an accountant mainly for tax returns and some planning. The 2025 NATP fee study from the National Association of Tax Professionals found an average of $236 for a basic individual return and an average minimum fee of $634 for business returns. Preparers who bill by the hour averaged $182 an hour.
→Related guideHow Much Does Tax Preparation Cost in 2026?Average fees by return type, what drives the price and how to lower your bill.Can you do your own bookkeeping?
Yes, especially in your first year with few transactions. Do it yourself works best when:
- You have one business bank account and one card
- You can set aside time every week, not just at tax time
- You reconcile every account monthly
- You have no employees, inventory or sales tax to track
Once you are spending evenings on it or falling behind, the math usually favors handing it off. Our QuickBooks month end close checklist shows what doing it right involves.
Signs it is time to get help
- You are more than a month or two behind
- You do not know your profit until tax time
- A tax bill surprised you
- You hired your first employee or crossed a sales tax threshold
- A lender asked for financial statements and you did not have them
Questions to ask before you hire
- What exactly is included each month, and what costs extra?
- Do you also prepare tax returns, or will I need someone else?
- What software do you use, and who owns the file?
- How quickly are the books closed each month?
- Who is my point of contact, and how fast do you reply?
- Is there a contract, or can I cancel any time?
Bookkeeper vs accountant FAQs
Is a bookkeeper the same as an accountant?
No. A bookkeeper records and reconciles your transactions so the books are accurate. An accountant uses those books to prepare tax returns, review the numbers and advise you. Some firms offer both under one roof.
Can a bookkeeper do my taxes?
Sometimes. Anyone paid to prepare federal returns needs a preparer tax identification number (PTIN) from the IRS, and many bookkeepers stick to the books. Ask whether the person or firm prepares returns and which returns they handle.
Do I need a bookkeeper if I use QuickBooks?
QuickBooks automates a lot, but it does not decide how transactions should be categorized, catch duplicates or reconcile accounts for you. Many owners use the software and pay a bookkeeper to review and close each month.
Do I need both a bookkeeper and an accountant?
Most growing businesses benefit from both kinds of work: monthly bookkeeping and a yearly tax return with some planning. That can be two people or one firm that handles both, so the books and the return always match.
Should I hire a bookkeeper or an accountant first?
If your books are behind or messy, start with a bookkeeper, because every tax return is only as good as the records behind it. If your books are current and a tax deadline is close, start with the tax side.
How many hours a month does a small business need a bookkeeper?
It depends on volume. A small service business with a few accounts may need only a few hours a month, while a business with payroll, inventory or many sales channels may need far more. That is why most outsourced plans are priced by activity, not by the hour.
Is it cheaper to hire a bookkeeper or an accountant?
Bookkeeping usually costs less per hour, according to BLS pay data. But you rarely choose one or the other. The cheapest setup is usually clean monthly books, which cut the time and cost of your tax return.
What is the difference between a bookkeeper and a certified public accountant?
A certified public accountant is an accountant licensed by a state board after passing a national exam and meeting education and experience rules. Only licensed firms can issue audited or reviewed financial statements. Bookkeepers do not need a license.
One team for books and taxes
We handle monthly bookkeeping, payroll and tax services together for small businesses across Northern Virginia, DC and Maryland, all remotely from our Ashburn office. As a certified QuickBooks Online ProAdvisor team, we can also take over or set up your QuickBooks file.
This article is general information and not tax advice for your situation. Tax rules change, so talk with a qualified professional before making decisions.
