Accountant vs bookkeeper: what's the difference?
Running a business is exhilarating, but also involves a lot of paperwork. 
 

This is why getting an expert accountant or bookkeeper on your side is absolutely vital. 

With us taking care of the numbers, you are free to focus on driving growth.

But these two important roles are not the same, and having a clear understanding of the differences is essential if you are going to make the best use of the resources you have at your disposal. 

As a business owner, you need to make sure you have the right support around you.

Accountants and bookkeepers are often at the top of the list of essential professional service providers. But many people actually consider these roles to be the same. 

Although there is a lot of crossover between the work that an accountant or bookkeeper will do for you, there are some important differences, too.  

You don’t want to get into a situation where you need an accountant, but only have a bookkeeper, or vice versa.

To make sure this doesn’t happen, here is a simple and quick explanation of how the two roles differ and which situations require which expertise.

Key takeaways

• Bookkeepers handle daily financial tasks like recording transactions, invoicing, and VAT returns, keeping business finances organised and up to date.
• Accountants focus on tax compliance, financial strategy, and business planning, providing expert guidance on tax efficiency and growth management.
• Both roles are valuable, but choosing the right one depends on whether you need record-keeping or advanced financial and tax advice.
• Seeking professional accounting or bookkeeping support can improve efficiency, ensure compliance, and help businesses make informed financial decisions.

What does a bookkeeper do?  

Bookkeeping is the regular activity of recording financial data and classifying and analysing business transactions.

As a bookkeeper, I make sure you can see exactly what is going on with your finances as you run your business.  

My main role will be to process financial transactions into the right software system of your choice, as well as making sure that bills are paid and chasing customers for late payments.  I am a partner on the major accounts packages, such as Xero, QuickBooks and Sage, and can provide training for you on these or assist with the operation support to use these systems effectively. 

I also offer services such as running payroll, preparing VAT returns and preparing and filing tax returns for sole traders.  

What does an accountant do?  

An accountant is less focused with recording the financial activity of your business. Rather, they are principally concerned with making sure that your business is fully compliant with its tax and reporting obligations. 

While a bookkeeper will work weekly, fortnightly or monthly to update your books, your accountant could work at less frequent intervals, maybe just at the end of the year.  

They are highly expert professionals who can add a whole range of extra value to your operations, especially for large companies.  Accountants often assist their business clients with the strategic management of the company, such as helping with tax planning to make sure all relevant tax advantages are being utilised. 

Due to their higher level of training, you may want to turn to your accountant with any complex questions you have, especially related to tax responsibilities and Companies House reporting. 

If you need someone to help with processing invoices and other financial documents 

This is where we, as your bookkeeper, will add a lot of value.

You want help preparing and filing VAT tax returns  

Both your accountant and your bookkeeper will likely be able to help you with this. Although your bookkeeper will check all invoices for the returns and ensure accuracy on the details.  

If you are self-employed or a subcontractor, a bookkeeper can assist with all the information for the end-of-year accounts. 

If you are a limited Company, an accountant can prepare limited company accounts   

A bookkeeper will not file corporation tax returns or calculate your capital gains tax. These should all be handled by an accountant.  

Whether you opt for just a bookkeeper, just an accountant or both, it is important that they are the right fit for you and your business.

After all, with the right resources in place, your business can push forward with confidence.