Understanding the difference and choosing the right financial expert for your business.

If you're a small business owner in the UK, managing your finances can feel overwhelming — especially when you're unsure whether to hire a bookkeeper or an accountant. While both roles are vital for your business's success, they serve different purposes.

In this guide, we’ll break down the key differences, help you assess your needs, and make the right decision for your business stage and goals.

✅ What’s the Difference Between a Bookkeeper and an Accountant?

Bookkeeper:

A bookkeeper handles the day-to-day recording of your financial transactions. Think of them as the organisers of your financial data — they keep everything accurate and up-to-date.

Typical duties include:

• Recording sales, expenses, and receipts
• Managing payroll and invoicing
• Reconciling bank statements
• Maintaining accurate ledgers

Accountant:

An accountant takes the information prepared by your bookkeeper and uses it to provide financial insights, reporting, and compliance services.

Typical duties include:

• Preparing and filing tax returns (e.g., Self Assessment, Corporation Tax)
• Creating financial statements
• Offering tax planning and business advice
• Ensuring compliance with HMRC regulations
• Helping you understand your financial position

✅ When Do You Need a Bookkeeper?

If your business is growing and you're spending too much time tracking receipts, reconciling accounts, or chasing invoices, it might be time to hire a bookkeeper.

Bookkeepers are ideal if you:

• Run a small or medium business with regular transactions
• Need accurate records for VAT, payroll, or expenses
• Want to stay organised for tax season
• Are not ready for full accounting services but need support

A good bookkeeper keeps your financial records clean, which makes life easier for both you and your accountant later.

✅ When Do You Need an Accountant?

If you need strategic financial guidance, want to legally reduce your tax bill, or are dealing with complex tax issues, you’ll want an accountant on your side.

Accountants are essential if you:

• Are setting up or restructuring your business
• Need help filing Corporation Tax or Self Assessment
• Want to maximise tax efficiency
• Require financial forecasts or investment reports
• Need support dealing with HMRC

An accountant is more than just a tax expert — they’re a long-term partner in your financial success.

✅ Do You Need Both?

In many cases, the answer is yes.

Bookkeepers and accountants work together to give you a full view of your finances. A bookkeeper ensures the day-to-day numbers are accurate, while the accountant uses that data to make high-level decisions, provide insights, and keep you compliant.

Think of it this way:

• Bookkeeper = Financial accuracy
• Accountant = Financial strategy

By hiring both (or choosing a firm that offers both services), you gain clarity, confidence, and peace of mind.

Final Thoughts

Whether you’re running a startup, a sole trader business, or a growing limited company, having the right financial support is key. You don’t have to choose one or the other — many businesses benefit from both bookkeeping and accounting services at different stages.

At East London Accountants, we offer flexible packages tailored to your needs — whether you just need help with monthly books or a full-service partner who can handle everything from payroll to tax strategy.

👉 Need help deciding what's best for your business?

Contact us today for a free consultation and let’s build the right financial support system for your success.