Should You Hire a Bookkeeper or a CPA? Here’s How to Decide

Managing your business finances well is critical to your long-term success. But when you start needing help, it’s not always clear who to turn to: a bookkeeper or a Certified Public Accountant (CPA)? While both are valuable, they serve very different functions. In this article, we’ll explain the differences, when to hire each, and why you may benefit from both — especially as your business grows.

1. What Does a Bookkeeper Do?Bookkeepers handle the day-to-day financial operations. This includes recording transactions, reconciling bank accounts, generating monthly reports, and managing accounts receivable and payable. They ensure that your financial records are up-to-date and accurate, which is crucial for decision-making and tax filing. Bookkeepers are typically involved on a weekly or monthly basis and are often the first financial hire for growing businesses.

2. What Does a CPA Do?A CPA brings a deeper level of financial expertise and strategic insight. In addition to preparing and filing taxes, CPAs offer advisory services such as budgeting, forecasting, compliance, and high-level reporting. They are licensed professionals who stay current with tax law changes and can represent you in front of the IRS. A CPA is especially important when you’re navigating complex tax issues, applying for loans or grants, or preparing for an audit.

3. When to Hire a BookkeeperIf you’re spending hours reconciling bank statements, manually tracking invoices, or falling behind on monthly reporting, it’s time to hire a bookkeeper. They help keep your financial engine running smoothly so you can focus on growing your business.

4. When to Hire a CPAConsider hiring a CPA when your tax situation becomes complex, you're expanding to new states, or you need help with strategic planning. A CPA is also essential for year-end financial analysis, audit readiness, or applying for nonprofit or S-corp status.

5. Do You Need Both?In many cases, yes. Bookkeepers keep your books clean, while CPAs help you use that data to make smarter financial decisions. Having both roles covered — either in-house or outsourced — creates a strong financial foundation.

Choosing between a bookkeeper and a CPA depends on your current needs, budget, and business complexity. At Iris Insights Accountancy, we provide both bookkeeping support and CPA-level advisory, so you don’t have to choose. Reach out to us today to build the right financial support system for your success.