Bookkeeper vs. Accountant vs. CPA: Who Does What for Your Small Business?

As a small business owner, you wear a lot of hats—but managing your finances doesn’t have to be one of them. Still, knowing who to turn to for help can get confusing. Should you hire a bookkeeper, an accountant, or a CPA?

Each plays an important role in your business’s financial health, but they serve different purposes. Here's a simple breakdown to help you understand who does what—and when you might need them.

Bookkeeper: Your Day-to-Day Money Tracker

Think of a bookkeeper as your financial organizer. They handle the nuts and bolts of your daily finances, keeping everything neat and accurate.

What They Do:

• Record every sale, purchase, and payment
• Send invoices and manage receivables
• Reconcile bank and credit card statements
• Run payroll
• Keep your financial software (like QuickBooks or Xero) up to date
• Work with your tax professional to ensure your books are ready at tax time

How They Bill:

Bookkeepers typically charge by the hour or offer monthly flat-rate packages. Rates can range from $50–$100 per hour, depending on their experience and your business needs. A flat monthly fee may make sense if you have regular, predictable work each month.

When You Need One:

If you’re spending too much time tracking receipts or if your books are a mess at tax time, it’s probably time to bring in a bookkeeper. They keep your financial engine running smoothly so you can focus on your business.

 

Accountant: Your Financial Translator

An accountant takes the financial data your bookkeeper maintains and turns it into useful insights. They help you see the big picture and make better business decisions.

What They Do:

• Prepare financial statements (profit and loss, balance sheets)
• Help you understand cash flow and profitability
• Assist with budgets and forecasts
• Prepare and file your business tax returns
• Offer guidance on tax deductions and savings

How They Bill:

Accountants usually charge hourly (often $100–$250 per hour), especially for tax filing, consulting, or financial analysis. Some may offer project-based pricing, like a flat fee for preparing your tax return or creating a budget plan.

When You Need One:

An accountant is your go-to when it’s time to file taxes, apply for a loan, or plan for growth. They help you understand what your numbers mean and how to use them to improve your business.

 

CPA (Certified Public Accountant): Your Expert Advisor

A CPA is an accountant with advanced certification and legal authority. All CPAs are accountants, but not all accountants are CPAs. They’re licensed, highly trained, and often deal with more complex financial situations.

What They Do:

• File audited financial statements (required for some loans or investors)
• Represent you in front of the IRS
• Handle high-level tax strategy and planning
• Perform business audits and advise on compliance
• Provide guidance during major financial decisions (buying/selling a business, expansion, etc.)

How They Bill:

CPAs tend to charge the highest rates due to their expertise and licensing. Expect $150–$500+ per hour, depending on their specialty and your location. Some CPAs may offer retainer agreements or value-based pricing for long-term advisory relationships.

When You Need One:

If your business is growing, facing an audit, needs complex tax planning, or is applying for major funding, a CPA is your best bet. They're also ideal for long-term, strategic advice.

 

Bottom Line for Small Business Owners

You don’t need to hire all three at once. Start with a bookkeeper to keep your financial records clean. Add an accountant when you need help with planning, taxes, or financial strategy. Bring in a CPA when things get more complex—like audits, large loans, or selling your business.

The right financial pro can save you time, money, and a lot of stress. And remember: good financial help isn’t just a cost—it’s an investment in your business’s success.