When to Hire a Bookkeeper vs. a CPA: A Small Business Guide

Understanding the Difference

Bookkeepers and Certified Public Accountants (CPAs) both play important roles in managing a business’s finances—but they offer different services at different stages. Knowing when to use each professional can help small business owners save money and make informed decisions.

The Role of a Bookkeeper

A bookkeeper handles the day-to-day recording of financial transactions, including invoicing, bill payments, payroll, and bank reconciliations. They help keep your books accurate and up to date so you always know where your business stands. Bookkeepers are often the first financial hire for small businesses and can work part-time or remotely using cloud-based accounting software.

The Role of a CPA

CPAs are licensed professionals who provide higher-level financial services, including tax preparation, financial analysis, audits, and strategic planning. You may not need a CPA every day, but they are critical during tax season, business formation, or financial decision-making periods.

When to Hire a Bookkeeper

If you're spending too much time on data entry or your books are disorganized, it's probably time to bring in a bookkeeper. Hiring a bookkeeper allows you to focus on running your business while maintaining accurate records throughout the year. This also sets you up for a smoother experience when it’s time to work with a CPA.

When to Hire a CPA

Consider hiring a CPA when your tax situation becomes complex, you’re planning to grow or sell your business, or you're seeking financial guidance. CPAs can help with business structure, deductions, tax credits, and forecasting. Their insight can be invaluable when making high-stakes decisions.

Bookkeepers and CPAs serve different, complementary purposes in your business finances. By understanding what each professional offers and when to bring them on board, small business owners can build a cost-effective and scalable financial support system. Whether you're just getting started or preparing to grow, having the right financial partners in place makes all the difference.