Accountant vs bookkeeper: what's the difference?

Accountant or bookkeeper? Plenty of business owners aren't sure of the difference, or whether they need one, the other, or both. They do different jobs, and the right answer depends on where your business is. Here's how they compare and how to tell what you need now.

What a bookkeeper does

A bookkeeper looks after the day-to-day. They keep your financial records accurate and up to date so you always know where you stand. Typically that means:

• Recording sales, purchases and expenses
• Reconciling your bank and chasing what's owed
• Keeping your accounting software tidy
• Preparing and filing VAT returns
• Running payroll, in some cases

Good bookkeeping is the foundation. Without it, everything downstream, including your tax bill, is a guess. Here's why getting your numbers right matters.

What an accountant does

An accountant works at a higher level. They take those records and turn them into compliance, tax and advice:

• Year-end accounts and filing
• Corporation tax, self-assessment and VAT
• Tax planning and efficiency
• Advice on cash flow, growth and structure

In short, a bookkeeper keeps score; an accountant helps you win the game.

How they work together

The two roles complement each other. Clean bookkeeping makes the accountant's job faster, cheaper and more accurate, and lets them focus on advice rather than tidying up. Many accountancy firms offer both under one roof, which keeps everything joined up.

Which do you need?

• Just starting or very small: tidy bookkeeping, even done well yourself, may be enough for now
• Growing, VAT registered or taking on staff: you'll benefit from both
• A limited company: you'll almost certainly want an accountant, with bookkeeping either in-house or handled by the same firm

For many small businesses the simplest answer is one firm that does both, so nothing falls between the cracks.

Switch Books is a free service that matches you with a local firm that covers what you need, whether that's bookkeeping, full accountancy, or both. Tell us where you're at and we'll find the right fit.