If you’re running a small business — whether you’re selling on Etsy or Whatnot, creating content online, or building your dream business from home — you’ve probably wondered, “Do I need a bookkeeper, an accountant, or both?”

Let’s clear that up together so you know exactly what kind of support will make your life easier.

What is the difference between a bookkeeper and an accountant?

Think of a bookkeeper as your day-to-day money organizer. They keep track of every sale, expense, and payout, reconcile your accounts each month, and turn all that data into easy-to-read reports like a Profit & Loss and Balance Sheet. 

Their job is to keep your numbers clear and organized all year long,  so you know where your money is going and everything is ready for tax season. Many bookkeepers also handle payroll, which takes one more thing off your plate.

An accountant, on the other hand, steps in less frequently but plays a big role when it matters most. They use the organized books your bookkeeper creates to prepare your tax return, give tax planning advice, and guide you through bigger financial decisions like choosing a business structure.

When You Need a Bookkeeper

You can DIY your bookkeeping for a while, especially in the very early days, but as your business grows, it can get overwhelming fast. Bringing in a bookkeeper saves time, stress, and often money in the long run.

You might be ready for a bookkeeper if:

• Your sales are picking up, and you’re falling behind on tracking income and expenses.
  
• You sell on multiple platforms (Etsy, Whatnot, Shopify, eBay) and want a clear picture of your true profit after fees, shipping, and refunds.
  
• You want regular reports like monthly profit and loss statements and cash flow tracking, so you always know where your business stands.
  
• You’re missing bank reconciliations or aren’t sure if your books are accurate.
  
• Tax season stresses you out because you don’t feel confident that your books are ready.
  

You might also need a bookkeeper if your reports don’t match your gut feeling;  you think you’re profitable, but your bank account says otherwise.

If you’re paying contractors, running payroll, managing inventory, or just feeling buried under receipts, this is the perfect time to bring in a bookkeeper so you can get back to focusing on what you love about your business.

When You Need an Accountant 

While a bookkeeper keeps your books accurate month after month, an accountant steps in to handle higher-level financial work. Most small business owners bring in an accountant when it’s time to file taxes or when they need strategic advice about their business finances. If you want to make sure your business structure is set up correctly — for example, deciding between staying a sole proprietor or forming an LLC or S-Corp — that’s a great time to consult with an accountant.

You might need an accountant if:

• You’re ready to file your taxes
  
• Your income has grown significantly, and you need help planning for higher tax payments.
  
• You’re hiring employees or contractors for the first time
  
• You need help with quarterly estimated taxes to avoid penalties.
  
• You’re considering changing your business structure (LLC, S-Corp, etc.) and want professional guidance.
  
• You need financial statements for a loan, line of credit, or investor.

An accountant can help you take your business to the next level — planning for growth, preparing for bigger opportunities, and helping you make informed decisions.

Bookkeeper + Accountant: The Perfect Team for Your Business

For most small business owners, it’s not really about choosing one or the other; it’s about having both on your team. 

Your bookkeeper is there with you month after month, keeping your books organized, reconciling your accounts, and giving you clarity with accurate reports. Then, when it’s time to file taxes or make big financial decisions, your accountant uses that organized information to prepare your return, give strategic advice, and help you plan for growth.

When your bookkeeper and accountant work together, you get the best of both worlds: clean, accurate records and expert guidance that’s based on reliable numbers. This partnership saves you time, reduces stress, and helps you make confident decisions about the future of your business.

If your books are behind, starting with a bookkeeper is the first step. Once your numbers are up to date, your accountant can step in to provide higher-level insight, and you’ll feel confident knowing their recommendations are backed by accurate data.

Ready to get your books organized? Schedule a free call with me and let’s chat about what kind of support your business needs.

Disclaimer:

Ever Leslie Bookkeeping provides bookkeeping and financial organization services. We are not CPAs and do not provide tax advice or file taxes. The information shared in this post is for educational purposes only and should not be taken as tax, legal, or financial advice. Please consult with a licensed CPA or tax professional for guidance specific to your situation.