Bookkeeping Basics
Bookkeeping vs Accounting: What's the Difference?
Short answer
Bookkeeping is the day-to-day recording of every dollar in and out. Accounting takes those records and produces reports, tax filings, and strategic decisions. Most solo and small service businesses do their own bookkeeping and hire an accountant once a year for taxes.
If you're confused about whether you need a bookkeeper, an accountant, or both — you're not alone. Here is the simplest possible way to think about it.
Who does what
| Bookkeeper | Accountant / CPA |
|---|---|
| Records sales, expenses, payments | Files taxes and prepares year-end reports |
| Categorizes transactions | Advises on entity structure and strategy |
| Reconciles bank statements monthly | Audits, attestation, and IRS representation |
| Sends invoices and tracks AR | Reads the books to forecast and reduce taxes |
What most owners actually need
Under $250K revenue: do your own books in invoicing software, hire a CPA for January tax filing.
Over $250K or with employees: a part-time bookkeeper monthly + a CPA at year-end usually pays for itself.
Frequently asked questions
Can I skip bookkeeping if I have a CPA?
No. A CPA needs clean records to file accurate taxes. Without bookkeeping, you're paying a CPA $200/hour to do data entry.
Bookkeeping, done for you.
Glo Invoice keeps your P&L, AR, and expenses in sync automatically — no spreadsheets, no surprises.
Sources & further reading
Primary sources we consulted when writing and reviewing this guide.