The short answer
A bookkeeper records what happened: transactions categorized, accounts reconciled, books closed monthly. An accountant interprets what happened and represents it to the outside world: tax filings, financial statements, planning, and advice.
Most small businesses need a bookkeeper monthly and an accountant a few times a year. Confusing the two gets expensive in both directions — accountants doing data entry at accountant rates, or nobody doing the interpretation at all.
What each one does
Bookkeeper: categorizes transactions, reconciles bank and card accounts, manages invoices and receivables, runs payroll or coordinates it, closes the month, and hands you clean reports. Typical cost for a small business: $95–$500/month depending on transaction volume.
Accountant (or CPA): prepares and files taxes, produces formal financial statements, advises on entity structure and tax strategy, and represents you if the tax authority calls. Typical engagement: $300–$1,500 per filing, more for ongoing advisory.
The order of operations
If you can only afford one right now, the order is: clean books first. An accountant working from messy books charges you to clean them at several times the bookkeeper rate. Good monthly bookkeeping makes tax season a handoff instead of an archaeology project.
When one person does both
Some professionals offer combined bookkeeping + tax service — common and legitimate. Ask two questions: who does the monthly work (them, or offshore staff you’ll never talk to), and what happens at tax time (included, or a separate engagement). Get the answer in the contract — the freelance contract template has a scope section built for this.
Looking for one? Start with the questions in our hiring guides, or browse verified finance sellers on Mindhyv.