Accountant vs Bookkeeper: Which Service Does Your Business Actually Need?

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The Short Answer

The main difference is timeframe and focus.

• A Bookkeeper looks at the daily details. They record what is happening right now—receipts, invoices, and payments. They make sure your financial records are organised and accurate day-to-day.
• An Accountant looks at the big picture. They analyse the data the bookkeeper collected to handle tax returns, file annual accounts, and give you strategic advice for the future.

Which do you need first? Most small businesses need a bookkeeper first. You need someone to track money coming in and out accurately from day one. You generally bring in an accountant closer to year-end to file your taxes, or quarterly if you need high-level business advice.

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What Does a Bookkeeper Do?

Think of a bookkeeper as the foundation builder. Their job is to ensure every single penny is accounted for correctly.

Typical tasks for a UK bookkeeper include:

• Recording transactions: Logging every sale and purchase.
• Reconciling the bank: Checking that your bank statement matches your records perfectly.
• Invoicing: Sending bills to clients and chasing up late payments (credit control).

The Goal: To keep accurate, up-to-date records so you know exactly how much cash you have right now.

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What Does an Accountant Do?

If the bookkeeper writes the story, the accountant reads it and tells you what it means. They take the accurate data provided by the bookkeeper and use it to keep you legal and profitable.

Typical tasks for a UK accountant include:

• Filing Annual Accounts: Submitting the required yearly reports to Companies House.
• Corporation Tax: Calculating and filing your Company Tax Return with HMRC.
• Tax Planning: Advising you on how to legally pay less tax (e.g., dividends vs. salary).
• Business Growth: Helping you understand if you can afford to hire staff or expand.

The Goal: To ensure you are compliant with UK tax law and to help your business grow financially.

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At a Glance: The Key Differences

Feature	Bookkeeper	Accountant
Focus	Daily records and admin	Big picture and strategy
Timing	Ongoing (Weekly/Monthly)	Periodic (Quarterly/Annually)
Main Job	Data entry and accuracy	Analysis and tax filing
Regulation	Not protected. Anyone can use the title. Look for AATQB or ICB qualifications.	Not protected. Anyone can use the title. Look for ACCA, MAAT, ICAEW, CIMA.
Cost	Generally lower hourly rate	Higher hourly rate

Important Note on “Qualified”: In the UK, the job titles “Accountant” and “Bookkeeper” are not protected terms. This means anyone can legally use them without qualifications. Always check that the person you hire belongs to a professional body like the ACCA or AAT to ensure they are insured and trained.

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The Smart Move: Do It Right, or Pay Twice

It is tempting to DIY your bookkeeping with software like Xero, but be very careful.

If you lack knowledge of double-entry or tax codes, you will create “messy books.” When you hand these to an accountant (MAAT or Chartered) at year-end, they cannot file your taxes immediately. They must first charge you to fix your errors.

The Best Approach: Hire a qualified bookkeeper for a few hours a month to keep data clean. Then, engage a qualified accountant (MAAT or ACCA) to handle the year-end filings. This ensures accuracy and keeps your professional fees optimized.

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Summary Checklist

1. Hire a Bookkeeper if:

• You are drowning in receipts and admin.
• You don’t know who owes you money.
• You want clean records so your accountant bills stay low.

2. Hire an Accountant if:

• It is time to file your Self Assessment or Company Tax Return.
• You want to turn your sole trader business into a Limited Company.
• You need advice on tax efficiency or business loans.

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