When it comes to managing your business finances, many business owners wonder: should I hire a bookkeeper, an accountant, or both? Understanding the key differences between these roles can help you choose the right level of support—especially as your business grows.
At East London Accountants, we offer both bookkeeping and accounting services tailored to small businesses, sole traders, landlords, and limited companies. In this guide, we break down what each professional does, how they overlap, and when you might need both.
What Does a Bookkeeper Do?
A bookkeeper is responsible for recording the day-to-day financial transactions of a business. Their tasks typically include:
- Recording income and expenses
- Reconciling bank statements
- Processing invoices and receipts
- Managing accounts payable and receivable
- Preparing basic financial reports (e.g. cash flow summaries)
- Maintaining accurate ledgers
Bookkeeping is all about ensuring your financial records are up to date, organised, and compliant.
What Does an Accountant Do?
An accountant takes the financial data compiled by the bookkeeper and uses it to:
- Prepare year-end accounts and tax returns
- Analyse financial data and offer insights
- Advise on tax efficiency and compliance
- Create forecasts and financial plans
- Support with HMRC correspondence and filings
- Provide strategic advice for growth and decision-making
Accountants help you interpret your financial data and make informed business decisions. They’re also responsible for ensuring your business meets its legal obligations.
Task | Bookkeeper | Accountant |
|---|---|---|
Day-to-day transaction recording | ✓ | ✓ (full statutory accounts) |
Preparing financial statements | ✓(basic | ✓ (full statutory accounts) |
Filing tax returns |
| ✓ |
Tax planning and advice |
| ✓ |
Budgeting and forecasting |
| ✓ |
Regulatory compliance | ✓ (record-keeping) | ✓ |
Business advice and strategy |
| ✓ |
When You Need a Bookkeeper
You may benefit from a bookkeeper if:
- You have frequent transactions (sales, expenses, payroll)
- You’re spending too much time on admin
- You want real-time financial visibility
- You need help staying organised for tax deadlines
A bookkeeper is ideal for day-to-day accuracy and staying on top of your numbers.
When You Need an Accountant
You need an accountant when:
- You’re preparing your self-assessment or corporation tax
- You want to minimise your tax liabilities
- You’re applying for a mortgage or business loan
- You’re scaling or planning investments
Accountants offer the insight and compliance expertise that goes beyond basic number-crunching.
Do You Need Both?
Many businesses benefit from both. Bookkeepers keep your finances in order throughout the year, while accountants step in for:
- Annual tax filings
- Compliance checks
- Strategic planning and growth
At East London Accountants, our services integrate both for a seamless experience. You get timely, accurate records and expert advice when you need it.
Software and Support
Whether you use Xero, QuickBooks, or Sage, we can manage your books, review your accounts, and file your returns—all from one place. Our cloud-based systems allow real-time collaboration, transparency, and access from anywhere.
Book a Free Finance Consultation
Still unsure what you need? Contact East London Accountants today for a free consultation. We’ll assess your business needs and recommend the right mix of bookkeeping and accounting services to keep you compliant and thriving.
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