Bookkeeper vs. accountant: The Main Differences Side by Side

If you're considering a career in finance, bookkeeping and accounting are two common paths many people take. Bookkeepers and accountants may work closely together, but their roles, responsibilities, and career trajectories are quite different.

In this guide, we’ll walk you through what each role entails, the differences between them, and how to figure out which one might be a better fit for your strengths, interests, and goals.

Jump to:

• What does a bookkeeper do?
• What does an accountant do?
• Main differences between bookkeepers and accountants
• Education and certifications
• Full-time, part-time, and freelance roles
• Bookkeeper vs. accountant: Average salary and job growth [2025]
• Payroll responsibilities for accountants and bookkeepers 
• So, do I need to hire an accountant or bookkeeper?
• Steps to finding a bookkeeper or accountant for my small business
• Building a career and beyond

What does a bookkeeper do?

Bookkeepers handle the day-to-day financial tasks that keep a business running smoothly. They aren’t there to give high-level financial advice or build tax strategies (that’s more an accountant’s territory), but they do lay the groundwork by keeping accurate, up-to-date records. Their work makes it possible for accountants to step in later with analysis, insights, and bigger-picture recommendations.

Let’s break down what a bookkeeper does every day and the skills that help them do it well.

Tasks of a bookkeeper

On a daily basis, bookkeepers are busy making sure a business’s financial story is being told the right way. Here are some of the key tasks they handle:

• Record financial transactions: This includes everything from customer payments to supplier invoices. Every time money moves, the bookkeeper makes a note of it.
• Manage accounts payable and accounts receivable: They make sure bills get paid on time and that the business collects money it’s owed.
• Reconcile bank statements: Bookkeepers double-check that what’s recorded in the business’s books matches what’s happening in the bank accounts.
• Keep the general ledger organized: This is the master record of all a company’s financial activity, and it’s up to the bookkeeper to keep it tidy.
• Process payroll: In many small businesses, bookkeepers help make sure employees get paid accurately and on schedule.
• Generate simple financial reports: Bookkeepers usually pull together basic reports like balance sheets or profit and loss statements, which give business owners a snapshot of how their finances are performing.

Valuable skill sets for bookkeepers

Bookkeepers need a mix of technical abilities and soft skills to perform their roles effectively. Some valuable skills include:

• Attention to detail: Bookkeeping demands accuracy. Even minor data entry errors can cause big financial issues down the line.
• Basic accounting knowledge: While bookkeepers aren’t required to have a CPA or advanced financial training, understanding accounting principles and double-entry bookkeeping is key.
• Organizational skills: Keeping financial documents (e.g., receipts, invoices, reports, etc.) well-organized and easy to access is important for audits, tax filing, and overall business transparency.
• Time management: Deadlines matter when it comes to responsibilities like payroll and paying bills. A great bookkeeper knows how to prioritize and stay on top of recurring tasks.
• Communication skills: Bookkeepers usually collaborate with accountants, clients, vendors, and business owners, so clear communication helps avoid confusion or costly mistakes.
• Software proficiency: Knowledge of bookkeeping software, like QuickBooks, is often expected. Many bookkeepers earn QuickBooks certifications to boost their skills and stand out to employers or clients.

What does an accountant do?

Accountants take the records bookkeepers maintain and use them to get a full view of a business’s financial health so they can offer insights, advice, and strategies to help business owners make smarter business decisions. In other words, they help businesses understand what happened financially, what it means, and what should happen next.

For example, let’s say an accountant notices that a business’s expenses have been climbing faster than usual. Instead of just recording the numbers and moving on, they’ll dig deeper. Maybe vendor prices have gone up, or maybe there’s some extra spending that’s slipped through the cracks. Either way, the accountant can flag the issue and offer advice— e.g., cutting unnecessary costs, renegotiating contracts, or adjusting prices—to keep the business on track.

Let’s take a look at what common tasks accountants do and the skills they need to succeed.

Tasks of an accountant

The daily life of an accountant can vary depending on where they work and what type of clients they serve. But generally, some of the main tasks accountants handle include:

• Analyzing financial records: Accountants review the data bookkeepers record, spot patterns, catch mistakes, and look for opportunities to improve the company’s finances.
• Preparing financial reports: They put together reports like income statements, balance sheets, and cash flow statements that show how a business is really doing.
• Handling taxes: Accountants file business tax returns and help companies plan ahead to lower their tax bill legally and smartly.
• Auditing: Some accountants specialize in business audits, where they review financial records in detail to ensure everything’s accurate and compliant.
• Budgeting and financial forecasting: Accountants help businesses build budgets and plan for future spending based on trends they see in the numbers.
• Ensuring compliance: They make sure businesses are following financial rules and regulations (like GAAP standards) so they can avoid potential fines or penalties.

Valuable skill sets for accountants

Accountants need a broad mix of technical know-how, analytical skills, and strong business instincts. Here are some of the top skills successful accountants bring to the table:

• Financial analysis and critical thinking: Accountants need to spot trends, solve complex financial problems, and make recommendations based on what the data shows.
• Expert knowledge of accounting standards: Understanding and applying generally accepted accounting principles (GAAP)—or International Financial Reporting Standards (IFRS) if working globally—ensures that financial reports are accurate and compliant.
• Attention to detail: Like bookkeepers, accountants must be meticulous because small mistakes in tax filings or financial reports can lead to big consequences.
• Strong math and technical skills: While modern accounting software handles a lot of the math, accountants still need a solid understanding of accounting formulas, tax codes, and financial software platforms like QuickBooks, Excel, and specialized tax programs.
• Problem-solving abilities: Businesses typically turn to accountants for help tackling challenges like cash flow issues, budgeting problems, or complex tax situations.
• Communication and advisory skills: Accountants need to break down complex information in a way business owners can understand and act on.

Main differences between bookkeepers and accountants

Bookkeepers handle more clerical work. They’re focused on recording financial transactions, organizing receipts and invoices, reconciling bank statements, and keeping the books up to date.

On the other hand, accountants look at the bigger picture. They take the information bookkeepers compile and use it to analyze financial trends, create reports, handle tax preparation, and help business owners make strategic decisions. Accountants step in to answer questions like: Are we profitable? Can we afford to hire? Are we overspending in certain areas?

Here’s a quick side-by-side to show how they differ: