A bookkeeper records your business's financial transactions as they happen, while an accountant prepares and examines your financial records, and a CPA is an accountant licensed by a state board. The US Bureau of Labor Statistics says bookkeepers typically start with some college and on-the-job training, while accountants typically need a bachelor's degree. Most small businesses need a bookkeeper every month and an accountant a few times a year.
The two job titles get used as if they mean the same thing, and that's how small businesses end up paying for the wrong help. I read the US Bureau of Labor Statistics profiles for both jobs to lay out what each one does, how they train and where a CPA fits in.
Bookkeeper and accountant side by side
| Bookkeeper | Accountant | |
|---|---|---|
| What they do | Compute, classify and record financial data to keep complete, accurate records | Prepare and examine financial records |
| Typical entry education | Some college, no degree | Bachelor's degree |
| Training | Moderate-term on-the-job training | None listed beyond the degree |
| Licence | None required | Optional CPA licence, required to file reports with the SEC |
| 2025 median pay (BLS) | 50,670 dollars a year | 83,680 dollars a year |
| Job outlook 2025 to 2035 | 6% decline | 5% growth, faster than average |
| Busy periods | Steady, mostly full time in an office | Overtime around quarterly audits and tax season |
What a bookkeeper does for a small business
The BLS describes bookkeeping, accounting and auditing clerks as the people who compute, classify and record data so an organisation keeps complete and accurate financial records. In a small business that means the daily and weekly work: recording sales and spending, matching bank transactions, chasing what's missing and keeping the books ready for anyone who needs them.
The BLS also lists 1,532,400 of these jobs in 2025 and a projected 6% decline over the following ten years, which is worth knowing when you hire: look for a bookkeeper who's at home in bookkeeping software and spots problems, not one who only types in numbers.
What an accountant adds
Accountants prepare and examine financial records, and the BLS says they typically need at least a bachelor's degree in accounting or a related field. In practice that's the work that sits on top of clean books: year-end accounts, tax returns, planning and the questions your bank or an investor will ask. The BLS notes that overtime is typical around quarterly audits and tax season, which is why you'll want to book your accountant early.
Where a CPA fits
A CPA is a Certified Public Accountant, licensed by their state's Board of Accountancy. The BLS says any accountant who files a report with the Securities and Exchange Commission must be a licensed CPA, and that becoming one means passing a national exam and meeting state requirements, including 150 semester hours of college coursework, 30 more than the usual 4-year bachelor's degree.
Who to hire first
- You're just starting and your records live in a spreadsheet: a bookkeeper, monthly, plus bookkeeping software.
- You're growing, hiring or registering for sales tax: keep the bookkeeper and bring in an accountant for the year-end and tax side.
- You're raising money, selling the business or reporting to the SEC: a CPA.
- You're in the UK: look for a bookkeeper or accounting technician with a recognised qualification, such as AAT, and a chartered accountant for the year-end work.
- Whoever you hire, keep your own login to the books, so the records stay yours.
If you're choosing the tools first, start with the best bookkeeping software for small businesses, and when you're ready to bring in help, here's how to find and hire a remote accountant.
Do you make bookkeeping or accounting software? Tool makers can ask to be considered for a featured place in comparisons like this one.
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My advice on a bookkeeper or an accountant
Don't pay an accountant to do bookkeeping, and don't ask a bookkeeper to do your tax planning. Get the books kept well every month, then pay an accountant for the thinking: year-end, tax and big decisions. It's the cleanest way to keep both sets of hours down and your numbers trustworthy. For keeping the monthly books yourself, accounting software for freelancers does most of the heavy lifting.
If the bookkeeper route interests you as a career, our guide to becoming a bookkeeper covers the training and optional certification.
Frequently asked questions
Is a bookkeeper the same as an accountant?
No. A bookkeeper records financial transactions to keep accurate books, while an accountant prepares and examines financial records and typically has a bachelor's degree, according to the US Bureau of Labor Statistics.
Does a bookkeeper need a qualification?
In the US, the BLS lists the typical entry as some college with no degree, plus moderate-term on-the-job training. In the UK, many bookkeepers hold qualifications from bodies such as AAT.
What is the difference between an accountant and a CPA?
A CPA is an accountant licensed by a state Board of Accountancy after passing a national exam and completing 150 semester hours of coursework. Only licensed CPAs can file reports with the SEC.
How much do bookkeepers and accountants earn?
The BLS lists 2025 median pay of 50,670 dollars a year for bookkeeping, accounting and auditing clerks and 83,680 dollars a year for accountants and auditors, as of October 2026.
