Choosing Accounting Support: Bookkeeper or Accountant
Bookkeeping and accountancy are distinct functions, and paying an accountant's rate for bookkeeping work is a common and avoidable expense.
What a bookkeeper does
Records transactions, reconciles bank accounts, processes invoices and receipts, chases outstanding payments, and frequently runs payroll.
Works continuously — weekly or monthly — keeping the records current.
Charges considerably less per hour than an accountant.
Good bookkeeping makes the accountant's work faster and therefore cheaper, which is why the two are complementary rather than alternatives.
What an accountant does
Prepares statutory accounts and tax returns, advises on structure and tax planning, handles correspondence with the tax authority, and provides the professional judgement that compliance requires.
Works periodically — typically annually with quarterly involvement where relevant.
Qualified accountants belong to professional bodies with regulation, insurance and complaints procedures. The term itself is unregulated in some jurisdictions, so checking membership matters.
What most small businesses need
A bookkeeper, or well-configured software with the owner doing the entry, keeping records current through the year.
An accountant at year end, plus advice at decision points — incorporating, taking on staff, buying premises, changing how profits are drawn.
Doing your own bookkeeping is entirely feasible for a small operation with modern software and is where most owners can save money.
Doing your own statutory accounts and tax returns is feasible for the simplest cases and increasingly false economy as complexity rises.
Choosing an accountant
Check professional body membership and confirm it directly rather than trusting a logo.
Ask what is included in the fee: annual accounts, tax return, payroll, quarterly filings, ad-hoc questions. Practices differ enormously in whether questions during the year are chargeable.
Ask about their experience in your sector, which affects both the advice and the efficiency.
Ask how they prefer to receive records, since a practice aligned with your software saves time on both sides.
Fixed annual fees are common and preferable to hourly billing for predictability.
Getting value from the relationship
Keep records current, since a practice charging by time bills for sorting out a poorly maintained set of books.
Ask questions before making decisions rather than afterwards. Advice on how to structure something is far more valuable than an explanation of the consequences after the fact.
Review the arrangement periodically, since a practice suited to a startup may not suit the same business several years on.
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