Do I Need an Accountant, a Bookkeeper, or Both?
If you’re running a business in the UK, one of the first questions you’ll face is whether to hire an accountant, a bookkeeper, or both. At first glance, the two roles may seem similar, but they serve very different functions.
Getting this decision right can save you time, reduce stress, and improve your financial health. This article explains what each professional does, how they differ, and when it makes sense to use both.
What Does a Bookkeeper Do?
Bookkeepers handle the day-to-day financial recording of your business. Their role is focused on accuracy and organisation, ensuring that every transaction is properly documented.
Typical Bookkeeping Duties
Recording sales, purchases, receipts, and payments.
Reconciling bank accounts.
Tracking invoices and managing accounts receivable/payable.
Producing simple financial reports, such as cash flow summaries.
Keeping digital or paper records compliant with HMRC rules.
Bookkeeping provides the foundation of making informed decisions that affect your business — accurate, up-to-date records that show where your money is coming from and where it’s going.
Who Needs a Bookkeeper?
Sole traders with frequent transactions.
Small businesses without the time to manage daily records.
Companies preparing for VAT submissions or payroll.
What Does an Accountant Do?
Accountants take financial data and interpret it for compliance, planning, and strategy. Their role goes beyond record-keeping to help you understand the bigger picture.
Typical Accounting Duties
Preparing and filing year-end accounts.
Managing tax returns (Self Assessment or Corporation Tax).
Advising on tax efficiency (salary vs dividends, allowable expenses).
Preparing management accounts for decision-making.
Supporting with funding, cash flow forecasting, and financial planning.
Accountants add analysis and advice on top of the bookkeeping records, helping you save money, stay compliant, and plan for growth.
Who Needs an Accountant?
Any business that must file annual accounts with HMRC or Companies House.
Owners looking for tax planning and strategic advice.
Growing businesses seeking funding or planning expansion.
How Do They Work Together?
The most effective businesses use both bookkeepers and accountants:
Bookkeepers ensure transactions are recorded accurately.
Accountants use those records to file compliant returns and provide advice.
Without a bookkeeper, accountants may spend time cleaning up records — which increases costs. Without an accountant, you risk missing tax planning opportunities and making compliance mistakes.
Key Differences Between Bookkeepers and Accountants
Scope: Bookkeepers focus on recording; accountants focus on analysis and compliance.
Timing: Bookkeepers work daily/weekly; accountants step in at month-end, quarter-end, or year-end.
Value: Bookkeepers keep records tidy; accountants help save money and grow the business.
When Do You Need Both?
Hiring both makes sense when:
Your business has grown beyond basic spreadsheets.
You are VAT-registered and need accurate quarterly reporting.
You employ staff and must manage payroll alongside tax obligations.
You want proactive financial advice as well as record-keeping.
For small startups, it may begin with a bookkeeper, but most successful businesses find that using both delivers the best balance of accuracy and strategy.
Case Study Example
A small e-commerce business started with just a bookkeeper managing invoices and expenses. By the second year, turnover exceeded £100,000, triggering VAT registration and more complex tax planning needs.
The business brought in an accountant who:
Reorganised their bookkeeping structure for VAT compliance.
Created quarterly management reports to track profitability by product line.
Implemented a dividend strategy that reduced the owner’s tax liability by £6,000 per year.
The combination of bookkeeper and accountant freed up the owner’s time and gave them confidence to focus on growth.
Bookkeepers and accountants play different but complementary roles. Bookkeepers ensure accuracy in your daily records, while accountants provide compliance, tax planning, and strategic advice.
If your business is very small, you may start with just a bookkeeper. But as you grow, combining both will give you the strongest foundation for financial success.
If you’re unsure which you need, speak with an accountant first. They can assess your business and recommend whether a bookkeeper, accountant, or a combination of both will deliver the best value.
