What’s the Difference Between an Accountant and a Bookkeeper?

Many business owners use the terms accountant and bookkeeper interchangeably—but their roles are quite different. Both help manage your finances, but they do so at different levels.

What a Bookkeeper Does

Bookkeepers handle the daily financial record-keeping of a business. Their job is to ensure that all transactions—sales, purchases, expenses, payroll—are recorded accurately.

Typical tasks include:

• Logging payments and expenses

• Reconciling bank statements

• Managing invoices and receipts

• Tracking cash flow

• Using accounting software like Xero or QuickBooks

They keep your books up to date so you always know where your money’s going.

What an Accountant Does

Accountants take the data from bookkeeping and use it for analysis, reporting, and compliance. Their job is more strategic.

They typically:

• Prepare financial statements

• File tax returns

• Offer tax planning advice

• Analyse business performance

• Support with budgeting and forecasting

Accountants are often professionally qualified and may be members of bodies like ACCA or ICAEW.

Key Differences

• Bookkeepers focus on recording financial data accurately.

• Accountants use that data to advise, report, and ensure compliance.

• Bookkeepers handle the day-to-day, while accountants take a bigger-picture view.

Working Together

Both roles are important. Bookkeepers ensure your financial records are clean and organised. Accountants build on that foundation to offer insights and ensure your business meets its financial obligations.

Some businesses use both. Others may start with a bookkeeper and bring in an accountant as they grow.

Understanding the difference helps you choose the right support for your business—and ensures your finances stay in good shape at every stage.