Bookkeeper. Accountant. CPA. Controller. CFO. If you’ve ever felt confused about who does what when it comes to your business finances, you’re not alone. Many small business owners are not quite sure where bookkeeping ends and accounting begins. Honestly, that’s fair.
In this post, we’ll break down the difference between a bookkeeper and an accountant, explain a few of the other financial roles you may hear about, and help you figure out who you actually need (and when).
What Does a Bookkeeper Do?
A bookkeeper is focused on the day to day financial activity of your business. Think of them as the organizer of your financial world. They make sure everything is tracked, categorized, and reconciled so you always know where things stand.
Typical tasks include:
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Recording income and expenses
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Categorizing transactions
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Reconciling bank and credit card accounts
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Managing accounts receivable and accounts payable
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Preparing financial reports like Profit & Loss and Balance Sheet
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Assisting with payroll or bill pay systems
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Keeping your books clean and up to date
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A good bookkeeper keeps your books accurate and ready to go, whether for taxes, funding, or better business decisions.
What Does an Accountant Do?
An accountant steps in to interpret the financial data your bookkeeper helps prepare. They often focus on strategy, compliance, and big picture financial planning.
Typical tasks include:
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Reviewing and adjusting your books for accuracy
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Preparing and filing tax returns
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Offering tax planning advice
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Conducting audits or reviews (especially CPAs)
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Helping with high-level financial strategy
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Setting up systems for depreciation, accruals, and year-end adjustments
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Not all accountants do taxes but most are trained to analyze and interpret your financial records.
Do You Need Both?
In many cases, yes—but not always at the same time.
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If you’re just starting out and want to keep things organized, a bookkeeper may be your first stop.
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If you’re making much larger profits, have some tax specific questions or applying for long term financing, it’s smart to involve an accountant or CPA.
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When you have both, they can work together. Your bookkeeper keeps things running smoothly month to month, and your accountant steps in for big strategy and compliance.
What About CPAs, Controllers, and CFOs?
As your business grows, you might come across other financial roles. Here’s a quick breakdown:
CPA (Certified Public Accountant):
A CPA is a licensed accountant who can prepare and file taxes, conduct audits, and represent you before the IRS. Not all accountants are CPAs, but all CPAs are accountants.
Controller:
A controller typically oversees the bookkeeping and accounting function in a large businesses. They ensure accurate reporting, internal controls, and help manage budgets and financial procedures. Kind of like a financial operations manager.
CFO (Chief Financial Officer):
A CFO is a high level strategic advisor. They help plan for growth, improve profitability, secure funding, and forecast long term financial health. Most small businesses don’t need a full time CFO, but many benefit from fractional or part time CFO services.
Final Thoughts
You don’t have to become a financial expert to run a successful business but knowing who to call (and when) makes a big difference.
If your day to day transactions are a mess, start with a bookkeeper. If you’re unsure how your income affects your taxes or you need strategic guidance, bring in an accountant or CPA.
❓ Questions? Reach out anytime.
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