When Do You Need a Bookkeeper vs. an Accountant?

Bookkeeper vs. Accountant: What's the Difference?

What a Bookkeeper Does

• Records day-to-day financial transactions
• Categorizes income and expenses
• Reconciles bank and credit card accounts
• Manages accounts receivable and payable
• Processes payroll
• Produces regular financial reports

When you need a bookkeeper:

• You have ongoing transactions to record
• You need organized financial records
• You want monthly financial statements
• Your books are a mess and need to be caught up

What an Accountant Does

• Reviews and analyzes financial statements
• Prepares tax returns
• Provides tax planning and strategy
• Offers business advisory services
• Handles complex financial decisions
• Audits (CPAs only)

When you need an accountant:

• Tax time (individual or business)
• When starting or restructuring a business
• For tax planning and strategy
• When facing an audit
• For major financial decisions

For Small Businesses: A Common Model

• Bookkeeper: Handles monthly recording and reconciliation
• CPA/Tax Professional: Reviews books quarterly, prepares annual return, provides tax strategy

Cost Comparison

• Bookkeeper: $20–$50/hour or $200–$800/month for basic services
• CPA: $150–$400/hour; tax prep typically $500–$2,500+

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Need both? K2 Tax Solutions offers bookkeeping AND tax preparation services under one roof.