What’s the Difference Between a Bookkeeper and an Accountant? (And Why It Matters to You)

If you're self-employed or running a small business, chances are you've heard the terms bookkeeper and accountant used a lot, but maybe you're not entirely sure what the difference is, or who you really need on your side.

You're not alone in that.

Many people come to us feeling a bit lost, thinking they should know the ins and outs of finance, but the truth is it’s completely normal to need some clarity. So, let’s break it down.

What Does a Bookkeeper Do?

A bookkeeper helps you keep your financial records organised and up to date. This includes:

  • Recording your day-to-day income and expenses

  • Reconciling bank accounts

  • Managing invoices and receipts

  • Preparing basic reports

  • Keeping everything in good order for tax and compliance

Essentially, bookkeeping is about making sure your financial foundation is solid and tidy. When your books are well kept, you know where you stand financially in real time, and you're better able to make decisions with confidence.

What Does an Accountant Do?

An accountant often works with the bigger picture. They usually step in to:

  • Prepare and submit year-end accounts and tax returns

  • Offer tax planning and strategic advice

  • Help with funding applications, business growth, or complex queries

  • Interpret financial data to support decision-making

Some accountants will also include do day-to-day bookkeeping in their services but not all do, and not all bookkeepers offer tax advice or accounts preparation. They’re different roles which complement each other.

Where We Come In

We are a bookkeeping practice bookkeeper, but our founder also has a background as a qualified management accountant. That means they understand what your accountant will need when the time comes to hand things over.

We’re here to:

  • Keep your records clean and complete

  • Ensure everything is ready for your accountant (if you have one, not everyone needs one)

  • Spot things early that could become issues later

  • Speak the language of both day-to-day finances and the bigger picture

Do You Need a Bookkeeper and an Accountant?

If you're a sole trader with relatively straightforward finances, good bookkeeping support might be all you need to stay compliant and in control. Many people find that with a bookkeeper keeping things organised throughout the year, they only need to work with an accountant briefly, for example, to file statutory accounts or submit a Corporation Tax return at the end of the year.

Other times you might need or just benefit from having an accountant as well as a bookkeeper include:

  • You run a limited company

  • You require formal accounts to support a mortgage application

  • You’d like help with tax planning

  • Your business is growing and becoming more complex and you’d like strategic financial advice

Still unsure? That’s okay. I’m happy to chat about your situation and help you figure out what level of support makes sense for you.

Next
Next

Spring Statement 2025: What It Means for You