Bookkeeper vs. CPA: What’s the difference and which do you need?

Many small business owners know they need “financial help,” but don’t always know if that means a bookkeeper, a CPA, or both. It’s a common point of confusion—and one that can get expensive. Hire a CPA for work that a bookkeeper could handle, and you’ll overpay. Skip a CPA when you need one, and you risk tax penalties or missing potential growth opportunities.

This article breaks down the difference between bookkeepers and accountants and when you might need one (or the pair). You’ll also see how QuickBooks bookkeeping software works alongside both professionals, making it easier for you to stay on top of your business finances without doubling your effort.

Jump to:

• What is a bookkeeper?
• Key bookkeeping responsibilities
• Qualifications for bookkeepers
• When to hire a bookkeeper
• What is a CPA?
• Key accounting responsibilities
• Qualifications for accountants
• Bookkeeper vs. CPA: Side-by-side comparison
• Do you need a bookkeeper, CPA, or both?
• How QuickBooks supports with bookkeepers and CPAs
• Understanding the costs of bookkeepers and CPAs in 2025
• Common misconceptions about bookkeepers and CPAs
• Bookkeeper vs CPA considerations for taxes
• How to choose the right professional for your business
• Find the financial professional that fits your business

What is a bookkeeper?

A bookkeeper is responsible for recording, organizing, and maintaining the financial records of your business. They’re the detail-oriented pros who make sure every dollar in and out of your business is tracked and categorized correctly. Without a bookkeeper, you won’t have reliable data to make decisions.

Key bookkeeping responsibilities

Bookkeepers handle a range of tasks, including:

• Recording daily sales, expenses, payments, and deposits
• Categorizing transactions properly
• Reconciling accounts against bank statements
• Preparing basic financial reports like profit & loss and balance sheets
• Managing payroll
• Preparing and sending invoices
• Closing books for tax preparation

Qualifications for bookkeepers

Bookkeepers possess a mix of knowledge, training, and skills. The following are some of the most common qualifications.

Education: Bookkeepers aren’t required to hold a formal degree, but many have an associate’s or bachelor’s in accounting, finance, or business. While not essential, this extra education can be a plus, especially if your business has more complex finances.

Experience: Hands-on experience is one of the most valuable assets a bookkeeper can bring. Many gain practical skills through entry-level positions, internships, or on-the-job training. Real-world experience shows they can handle the daily flow of invoices, expenses, and reconciliations with accuracy.

Certification: Certification isn’t mandatory, but it can set candidates apart. National programs such as those from the National Association of Certified Public Bookkeepers (NACPB) and the American Institute of Professional Bookkeepers (AIPB) validate expertise and are widely respected. Many bookkeepers also pursue software-specific certifications, like QuickBooks Certification, which demonstrate proficiency with the tools most small businesses rely on.

Skills: Beyond education and credentials, strong bookkeepers unite technical know-how with soft skills, such as:

Attention to detail and organizational ability

Proficiency with bookkeeping or accounting software, such as QuickBooks

Understanding of financial basics like recording transactions, reconciling accounts, and preparing reports

Integrity and professionalism when handling sensitive financial data

When to hire a bookkeeper

If you’re just starting out or if your transactions are fairly simple and limited, you may be fine managing basic bookkeeping tasks by yourself. But as your business grows, and the volume of invoices, expenses, and accounts to track increases, it often makes sense to bring in a bookkeeper.

You might consider a bookkeeper if:

You want up-to-date books without handling it yourself

Instead of spending evenings reconciling accounts, you’d rather focus on serving customers, developing products, or managing your team.

Your business has regular transactions that need to be recorded and categorized

For example, you may have subscription fees, inventory purchases, vendor payments, or weekly payroll that require consistent tracking.

You need reliable financials for taxes or funding but don’t require in-depth tax strategy or compliance work

If you need clean reports for your CPA at tax time or accurate profit & loss statements to share with a lender or potential investor, a bookkeeper can help.

What is a CPA?

While bookkeepers are your recordkeepers, CPAs (Certified Public Accountants) are licensed professionals who step in when things get more complex. They focus less on transaction-by-transaction detail and more on tax compliance, regulations, and strategy.

Key accounting responsibilities

CPAs are primarily responsible for:

• Preparing and filing tax returns
• Advising on tax strategy and identifying savings opportunities
• Representing businesses in the event of an IRS audit
• Providing compliance oversight to meet regulatory standards
• Reviewing and adjusting a bookkeeper’s work to ensure accuracy
• Generating financial statements and reports needed for taxes or investors
• Using financial data to analyze overall business health and guide long-term planning

Qualifications for accountants

Becoming a CPA involves significantly more training and preparation than bookkeeping. CPAs must meet specific educational, testing, and ethical requirements, including:

Education: A bachelor’s degree in accounting or a related field. Most states also require 150 semester hours of coursework (beyond a typical undergraduate degree).

Experience: Most states require 1–2 years of supervised work experience before licensure.

Examination: Passing the Uniform CPA Examination is mandatory.

Continuing Education: CPAs must complete ongoing Continuing Professional Education (CPE) to stay current on laws, standards, and regulations.

Professional Privileges: Only CPAs are legally allowed to sign audit reports and represent clients before the IRS in certain matters, which distinguishes them from non-licensed accountants and bookkeepers.

Ethics: CPAs are subject to rigorous ethical standards enforced by state boards of accountancy and organizations such as the American Institute of Certified Public Accountants (AICPA).

When to hire an accountant

Business owners often rely on bookkeepers for the day-to-day, but there are times when a CPA becomes essential. CPAs provide deeper financial oversight, tax expertise, and business guidance that goes beyond routine recordkeeping.

You might consider hiring a CPA if:

• You need help preparing and filing business tax returns.
• You want advice on tax-saving strategies or long-term financial planning.
• Your business is being audited or you need representation with the IRS.
• You’re looking for compliance oversight to meet regulatory requirements.
• You’re seeking guidance on business structure to optimize taxes and liability.
• You’re planning major growth moves like mergers, acquisitions, or succession planning.

Bookkeeper vs. CPA: Side-by-side comparison

While bookkeepers and CPAs both support your finances, they do it in different ways. Here’s a side-by-side look at how they compare.

Do you need a bookkeeper, CPA, or both?

Sometimes you just need one. Sometimes both. It all depends on your business stage and needs.

When a bookkeeper may be enough:

• Small startup with limited transactions: A bookkeeper can track expenses and revenue and keep your records straight.
• Example: A freelance graphic designer with a few steady monthly clients needs someone to categorize client payments and software subscriptions so invoices and expenses stay organized.
• Preparing for financing or investment (early stage): Clean, up-to-date books prepared by a bookkeeper give lenders or investors financial clarity.
• Example: A new coffee cart owner is getting ready to approach a bank for a small business loan and needs to get their financial records in order.
• Solo business owner wearing many hats: If you’re running a consulting practice, online shop, or local service business, a bookkeeper can free up your time by taking recurring financial tasks off your plate.
• Example: An online boutique owner needs help keeping up with inventory purchases and sales records while they focus on product design and customer service.

When a CPA is the better fit:

• Facing an audit or regulatory review: A CPA is licensed to represent you and ensure compliance.
• Example: A contractor flagged for a state sales tax review needs formal representation and accurate filings.
• Seasonal or gig business: If transactions are light, you may only need a CPA at tax time.
• Example: A wedding photographer who books most of their income during the summer may just require tax filing support once a year.
• Expanding or restructuring your business: A CPA can guide you on entity type, tax structure, and compliance during transitions.
• Example: A catering company is moving from sole proprietorship to an LLC and needs advice on payroll and liability protection.
• Finalizing financing or investment (later stage): Many lenders or investors may require CPA-prepared financial statements or tax records before approving funding.
• Example: A growing tech startup is applying for venture capital and the investors want CPA-reviewed financial statements before moving forward.

When you’ll benefit from both:

• Growing business with more tax needs: A bookkeeper keeps your records accurate year-round, while a CPA helps you navigate tax season.
• Example: A family-owned retail shop uses a bookkeeper to manage daily sales and expenses, and a CPA to ensure compliance and maximize deductions at tax time.
• Managing rapid growth: A bookkeeper organizes daily financial activity, while a CPA supports forecasting and strategic planning.
• Example: A subscription box business that doubles orders each quarter uses a bookkeeper to track payments and returns, while their CPA projects cash flow and future tax obligations.
• Planning for the long term: With both working together, you get accuracy on the details from your bookkeeper and strategic insights on the big picture from your CPA.
• Example: A marketing agency is expanding into new states. A bookkeeper tracks project costs and the CPA advises on multi-state tax compliance and growth strategy.

How QuickBooks supports with bookkeepers and CPAs

Whether your business relies on a bookkeeper, a CPA, or both, QuickBooks brings everyone into the same secure system. You’ll cut down on duplicate work, avoid errors and inconsistencies, and help each professional work efficiently.

• Shared access: Invite your bookkeeper or CPA into your QuickBooks account with role-based permissions, so each person only sees task-relevant information.
• Bookkeeper support: Bookkeepers can reconcile accounts, record daily transactions, and categorize expenses directly in QuickBooks. Your records stay up-to-date and ready for reporting and making informed decisions.
• CPA support: CPAs can review real-time reports, handle tax filings, and use the data to advise on compliance, savings opportunities, and long-term planning.
• Everything is connected: With transactions, receipts, and reports stored in one hub, both professionals work from the same current data without chasing files or versions.

Understanding the costs of bookkeepers and CPAs in 2025

Before you bring in extra help, it’s good to know what bookkeepers and CPAs usually charge in 2025 and what can affect the costs.

Bookkeeper costs

The U.S. Bureau of Labor Statistics reports that bookkeeping, accounting, and auditing clerks earn about $23.66 per hour, with an annual median of roughly $49,210. This reflects a broad range, and roles vary by industry and location.

Bookkeeping cost trends

Bookkeeping cost trends show steady or modestly rising fees in 2025, with government and industry data indicating most increases align with inflation or regional variance.

CPAs and accountants

As of 2025, median accountant salaries range from $64,180 to $123,410. Per-hour rates can range between $100 and $400 per hour, with rates influenced by location, experience, credentials, and the complexity of your business. In large cities or when working with seasoned CPAs, fees can be higher.

Costs reflect the type of support and industry

Costs also depend on the type of support you need. Basic tax preparation may come with a flat fee or a lower hourly rate, while accountants who provide broader advisory services—like managing cash flow, analyzing staffing costs, or guiding long-term planning—typically charge more because of the added expertise and strategic value they bring.

Industry also plays a role in cost. The U.S. Bureau of Labor Statistics reports that accountants in the finance and insurance industries had the highest median annual wage at $87,980.

Frequency matters

A bookkeeper is generally a monthly or ongoing expense, helping with daily operations. A CPA is often brought in during tax season or for specific needs like audits, so their services might be quarterly or annual.

2025 CPA cost trends and influencing factors

According to a recent pricing benchmark report, CPA costs are trending upward, with most firms planning 5–10% increases in 2026. The report highlights a shift not only in pricing levels but also in how services are billed.

Hourly billing is fading: Fewer firms charge by the hour, moving instead to fixed or value-based pricing models.

Upfront payments are growing: More firms collect deposits or fees upfront to steady cash flow.

Costs are driving hikes: Rising business expenses remain the top reason for fee increases.

Strategy is a bigger factor: More firms now raise prices to improve margins and grow revenue, not just cover costs.

Client loss fears easing: Most firms that raised rates reported keeping clients or maintaining profitability.

Common misconceptions about bookkeepers and CPAs

Business finances can feel complicated, and it’s no surprise there are plenty of myths about who does what—or if you even need professional help. Let’s clear up some of the most common misconceptions.

Your bookkeeper can file your taxes.

The truth: Unless they have additional licensing, bookkeepers don’t file taxes. Their strength is in keeping your books accurate, organized, and up to date. CPAs (or enrolled agents and licensed tax preparers) are the ones who prepare and file tax returns. Think of it this way: Your bookkeeper provides the clean records, and your CPA uses those records to prepare your filings and advise on tax strategy.

You don’t need a bookkeeper if you have a CPA.

The truth: CPAs typically don’t track daily transactions or handle monthly reconciliations. They rely on accurate, well-kept books to provide advice, file taxes, and assist with an audit. If your books are a mess, your CPA will spend extra time—and you’ll likely pay extra fees—cleaning them up. A bookkeeper saves you that headache by maintaining order all year long.

Bookkeepers and CPAs do the same thing.

The truth: Their roles complement each other. Bookkeepers handle the daily financial recordkeeping—recording transactions, categorizing expenses, reconciling accounts—so you always have a clear snapshot of your cash flow. CPAs oversee compliance, tax filings, financial planning, and big-picture strategy. You get the most value when they work together.

Software can replace professionals.

The truth: While tools like QuickBooks facilitate bookkeeping by automating tasks like bank feeds, categorization, and financial reports, they can’t replace human judgment. A bookkeeper can catch errors, set up your system the right way, and keep you on track. A CPA can look at that same data and help you minimize taxes, plan for growth, or navigate an audit. QuickBooks streamlines collaboration, but human expertise is still essential.

Bookkeeper vs CPA considerations for taxes

When it comes to taxes, bookkeepers and CPAs play different roles. Here’s a breakdown of the tax-related services each typically provides:

Bookkeeping tax services

• Month-to-month accuracy: Record income and expenses, reconcile accounts, and keep the general ledger clean so tax reporting is easier.
• Example: A freelance designer with steady clients relies on a bookkeeper to reconcile accounts and categorize expenses, ensuring everything is organized for tax prep.
• Receipt and document management: Track, attach, and store receipts, invoices, and statements to support deductions.
• Example: A landscaping business works with a bookkeeper who records fuel, equipment, and supply invoices each month, keeping everything audit-ready.
• Year-end reports: Provide organized summaries like profit and loss statements or mileage logs to hand off to whoever files taxes.
• Example: A tutoring service receives year-end financial reports from its bookkeeper that make filing straightforward.

Note: Bookkeepers do not file tax returns or offer formal tax advice.

CPA tax services

• Tax preparation and filing: Prepare and submit federal and state returns, and calculate quarterly estimated payments.
• Example: An e-commerce business selling across states relies on a CPA to file returns accurately and set quarterly estimates.
• Tax strategy and complex situations: Advise on deductions, credits, payroll, entity type, and multi-state tax issues.
• Example: A contractor with employees turns to a CPA for help with payroll taxes, depreciation, and business structure decisions.
• Representation and compliance: Represent clients before the IRS and handle tax notices or audits.
• Example: A consultant contacted by the IRS during an audit depends on a CPA to manage communications and resolve compliance questions.

How bookkeepers and CPAs work together for year-round tax support

• Ongoing accuracy plus strategy: A bookkeeper maintains the daily records, while a CPA uses that information for filings, tax planning, and long-term guidance.
• Example: A small consulting firm has a bookkeeper track income, contractor payments, and software expenses, while the CPA files returns and advises on deductible expenses and retirement contributions.

How to choose the right professional for your business

Financial support is not a one-size-fits-all. Every business is different and has unique needs. Here’s how to figure out the best fit for you:

Assess your needs

Ask yourself what you need most right now. Do you want someone to keep your daily records accurate? That’s a bookkeeper. Do you need compliance oversight, tax filings, or higher-level strategy? That’s a CPA. Many businesses benefit from both. They’ll use a bookkeeper for routine financial activity, and a CPA to help with taxes, compliance, and future growth planning.

Check credentials

Bookkeepers don’t have to be licensed, but many hold certifications that show their training and expertise. CPAs, on the other hand, must be licensed by their state and meet ongoing education requirements.

Ask about software experience

If you’re already using a certain bookkeeping or accounting software, look for a professional who’s comfortable working with it. Familiarity with your system means they can jump right in without a learning curve and make the most of its features.

Start small if needed

Many businesses begin with a bookkeeper to manage daily records and reporting, then add a CPA as finances get more involved. Some only bring in a CPA at tax season. Starting with the level of support you need now—and scaling as you grow—keeps costs manageable while ensuring you always have the right expertise.

Find the financial professional that fits your business

As a business owner, you wear lots of hats. With the right financial support, you don’t have to handle every task yourself—you can stay informed while putting more of your energy toward growth. QuickBooks makes it easy to connect with certified professionals who match your needs and gives them the tools to work smarter with you:

Search locally: Use the QuickBooks ProAdvisor directory to find certified bookkeepers and CPAs by location, industry, or specialty.

Go virtual: QuickBooks Live Bookkeeping pairs you with a certified online bookkeeper for hands-on help or full-service support. QuickBooks Live Bookkeepers have held thousands of meetings with small business owners so far and counting!

Work from the same system: QuickBooks accounting software keeps your data organized in one secure place, so your bookkeeper can manage the day-to-day and your CPA can step in with accurate reports when it’s time for taxes or planning.

Confidence in your numbers can give you the freedom to push your business further. Let QuickBooks help you focus on where you want to go next.