Accounting Guide
Bookkeeper vs. Accountant
What a Bookkeeper Does
A bookkeeper is responsible for maintaining accurate, up-to-date financial records. Their work is ongoing — typically monthly — and forms the foundation that your accountant builds on at tax time.
- ✓ Record all income and expense transactions
- ✓ Reconcile bank and credit card accounts
- ✓ Manage accounts payable and receivable
- ✓ Run payroll (in full-service arrangements)
- ✓ File sales tax returns
- ✓ Produce monthly P&L and Balance Sheet
- ✓ Maintain QuickBooks or other accounting software
What an Accountant Does
An accountant analyzes financial data, ensures compliance with tax laws, and provides strategic advice. Their work is often periodic — tax season, financial reviews, audit response — rather than daily.
- ✓ Prepare and file business tax returns
- ✓ Prepare personal tax returns for owners
- ✓ Handle IRS audits and notices
- ✓ Advise on entity structure and tax strategy
- ✓ Perform historical and forensic accounting
- ✓ Provide financial analysis and planning
- ✓ Represent clients before tax authorities
Why You Need Both — and Why One Firm Is Better
Having separate bookkeepers and accountants creates friction. Your bookkeeper maintains your records; your accountant prepares your taxes — but if they use different software, different coding conventions, or different charts of accounts, your accountant spends tax season fixing bookkeeping problems instead of minimizing your tax bill.
When one firm handles both, your books are always in the exact format your tax preparer needs. Errors get caught in real time. Questions get answered faster. And your tax preparer already knows your business when April rolls around.
At ASU, bookkeeping, payroll, sales tax, and income tax preparation are all handled by the same team using the same QuickBooks file. See all ASU services →
Bookkeeper vs. Accountant — Frequently Asked Questions
What is the main difference between a bookkeeper and an accountant?
A bookkeeper records and organizes financial transactions on a daily or monthly basis — coding income and expenses, reconciling bank accounts, and producing financial statements. An accountant analyzes that data to prepare tax returns, handle IRS compliance, perform audits, and provide financial strategy advice. Bookkeeping is the foundation; accounting is built on top of it.
Can a bookkeeper prepare my tax return?
In most states, unlicensed bookkeepers cannot legally prepare and sign tax returns for others. Tax preparation requires either a CPA, Enrolled Agent, or other licensed tax preparer. At ASU, our bookkeeping team maintains your records, and our licensed accounting staff prepares and files your tax returns — you get both services from one firm, with no handoff in between.
Do I need both a bookkeeper and an accountant?
Most small businesses need both. You need a bookkeeper to keep your records current throughout the year (monthly bookkeeping) and an accountant to file accurate tax returns and handle complex compliance issues (tax season and ongoing strategy). Hiring only a bookkeeper means your taxes may not be handled correctly. Hiring only an accountant without ongoing bookkeeping means they spend tax season reconstructing records instead of optimizing your return.
How much more does an accountant cost than a bookkeeper?
Bookkeeping is typically priced by transaction volume — most small businesses pay $200–$600/month for full-service monthly bookkeeping. Accounting and tax preparation is typically priced per return: a business tax return (S-Corp, LLC) might cost $800–$2,500 depending on complexity; a personal return for a business owner might cost $300–$800. ASU provides custom quotes for both — call (504) 838-7140 for a free consultation.
What does ASU provide — bookkeeping, accounting, or both?
ASU provides both under one roof. We handle monthly bookkeeping (transaction coding, bank reconciliation, financial reports), sales tax filing, payroll, and business and personal tax preparation. Having one firm handle everything means your books are in the right format for your tax preparer, errors get caught earlier, and you have one point of contact for all your financial questions.