Do I need a bookkeeper or an accountant?
Bookkeepers and accountants handle different parts of your financial picture. Understanding what each does helps you figure out what your business actually needs.
Bookkeepers handle the day-to-day recording of transactions. They categorize expenses, reconcile bank accounts, track accounts receivable and payable, and make sure your financial records are accurate and current. Good bookkeeping gives you clean data to work with. Without it, you’re guessing at your cash flow and profitability.
Accountants take that clean data and do something with it. They prepare tax returns, analyze financial statements, advise on tax strategy, and help with bigger-picture financial decisions. Some accountants are also Enrolled Agents who can represent you before the IRS when issues arise.
Most small businesses need both, just at different frequencies. You might need bookkeeping weekly or monthly to keep your records organized. You might need accounting work quarterly for reviews and annually for tax preparation.
The question isn’t really “which one do I need” but “what am I trying to solve right now?”
If your books are a mess and you can’t tell where your money is going, start with bookkeeping. You can’t do useful accounting work on top of unreliable data. Getting your records organized and maintained is the foundation everything else builds on.
If your books are clean but you’re paying more in taxes than you should, or you need help understanding your financial position and making strategic decisions, that’s accounting work. Same if you’ve received an IRS notice and need someone who can handle the communication and represent you.
Some firms separate these roles completely. Others offer both under one roof. Working with a Phoenix area business accountant that handles both means your bookkeeper and accountant are looking at the same numbers and talking to each other. That usually results in fewer mistakes and better advice because nothing falls through the cracks between two different providers.
If you’re still not sure what you need, start by describing the problem you’re trying to solve. Messy books, tax questions, cash flow confusion, IRS letters. The specific problem usually makes the answer clear. And if you need both, at least you’ll know which one to prioritize first.
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More Questions
What is job costing for construction?
Job cost tracking records all expenses and revenue by individual project so you can see which jobs are profitable and compare actual costs to estimates.
Read answerHow much does accounting cost for contractors?
Monthly bookkeeping for contractors typically runs $300 to $800 depending on transaction volume and complexity. Tax preparation adds $800 to $2,500 annually depending on entity type and number of projects.
Read answerCan I do my own bookkeeping?
Yes, you can handle your own bookkeeping. But it requires time, consistency, and accounting knowledge that most business owners underestimate. The real question is whether it's the best use of your hours.
Read answerWhy would anyone use a bookkeeper for their small business vs QuickBooks?
QuickBooks is software. A bookkeeper is someone who uses that software and knows what to do with the information. Most bookkeepers use QuickBooks, so the real question is whether you manage your books yourself or have a professional handle them.
Read answerWhat triggers an IRS audit for a small business?
The IRS looks for returns that don't match third-party reporting, claim unusually high deductions relative to income, or show patterns inconsistent with similar businesses. Good records and accurate reporting are your best protection.
Read answerHow to clean up inaccurate bookkeeping?
Start with bank reconciliation to find duplicates, missing transactions, and amounts that don't match. Then work through credit cards, fix categorization errors, and clear out uncategorized transactions. If the mess is significant, professional cleanup is usually faster and more reliable than DIY.
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