What’s the Difference Between a Bookkeeper and an Accountant?

Essential Financial Roles Every Small Business Owner Should Understand

Running a small business often means wearing many hats—owner, marketer, customer service rep, and sometimes, your own finance team. But as your business grows, managing finances can quickly become more complex. That’s where understanding the difference between a bookkeeper and an accountant comes in handy.

While both are essential to your financial health, they serve distinct purposes. Knowing who does what can help you make smarter hiring decisions—and avoid costly mistakes.

What Does a Bookkeeper Do?

A bookkeeper handles the daily financial tasks that keep your business running smoothly. This includes:

• Recording all sales, expenses, and payments

• Reconciling bank and credit card statements

• Sending invoices and tracking receivables

• Managing payroll and vendor payments

• Organizing receipts and categorizing expenses

Think of a bookkeeper as the person who keeps your financial house in order day to day. They're detail-oriented and help ensure your records are accurate and up to date.

What Does an Accountant Do?

An accountant steps in to analyze and interpret the financial data that bookkeepers record. Their responsibilities typically include:

• Preparing financial statements (like balance sheets and profit & loss reports)

• Creating tax-ready reports and filing tax returns

• Helping with budgeting, forecasting, and financial planning

• Advising on tax strategy, deductions, and compliance

• Offering big-picture insights into business performance

Accountants are your strategic financial partners. They help you understand what the numbers mean and how to use that information to make informed decisions.

Which One Does Your Small Business Need?

If you're just starting out, you might handle bookkeeping yourself or hire a part-time bookkeeper. But as your business grows, hiring both a bookkeeper and an accountant becomes increasingly valuable. Bookkeepers save you time and reduce errors; accountants help you plan ahead and avoid tax surprises.

In short:

• Bookkeepers keep you organized.

• Accountants help you grow.

Final Thoughts

For small business owners, every dollar—and every decision—counts. Having the right financial professionals on your side can make a huge difference. Whether you hire in-house, outsource, or use a combination of both, understanding the roles of bookkeepers and accountants is the first step toward building a financially healthy business.

Need help getting started with bookkeeping? Let’s chat—we can help you find the right solution for your business.

At MakeCentsBookkeepingllc we can categorize your transactions, reconcile your business accounts, and provide your business financial statements.