Accountant vs Bookkeeper — Which do you need?
Not sure which professional to hire? Here's everything you need to know about the difference between a accountant and a bookkeeper.
At a glance
Cost comparison
| Service | Low estimate | High estimate | Per |
|---|---|---|---|
| Accountant | £50 | £200 | per hour |
| Bookkeeper | £20 | £50 | per hour |
Indicative UK market rates. Always get at least 3 written quotes.
How to decide: Accountant or Bookkeeper?
- 1An accountant prepares statutory accounts, handles complex tax matters, and can audit.
- 2For limited companies or regulated financial reporting, you typically need a qualified accountant.
- 3A bookkeeper handles day-to-day financial records at a lower cost than an accountant.
- 4Ideal for sole traders and micro-businesses that need records kept tidy for an accountant to review.
Frequently asked questions
What is the difference between a Accountant and a Bookkeeper?
A Accountant typically handles: Annual accounts, Tax returns (Self Assessment). A Bookkeeper typically handles: Day-to-day bookkeeping, Bank reconciliation.
How much does a Accountant cost compared to a Bookkeeper?
A Accountant typically charges £50–£200 per hour. A Bookkeeper typically charges £20–£50 per hour.
Do I need a Accountant or a Bookkeeper?
An accountant prepares statutory accounts, handles complex tax matters, and can audit. For limited companies or regulated financial reporting, you typically need a qualified accountant. A bookkeeper handles day-to-day financial records at a lower cost than an accountant. Ideal for sole traders and micro-businesses that need records kept tidy for an accountant to review.
What qualifications does a Accountant need in the UK?
ACA / ACCA / CIMA qualified, ICAEW, ACCA or CIMA regulated.
What qualifications does a Bookkeeper need in the UK?
AAT or ICB qualified, No mandatory licence for basic bookkeeping.