Bookkeeping vs accounting: what is the difference?

People use the two words interchangeably, but they are different jobs.

Bookkeeping records what happened

A bookkeeper records transactions, categorizes them, matches receipts and reconciles accounts to bank statements. The output is accurate books: a reliable record of money in and money out.

Accounting interprets it

An accountant uses those books to prepare financial statements, calculate taxes, plan for the year ahead and advise on decisions such as pricing, hiring or changing your business structure.

Which do you need first?

Bookkeeping, nearly always. Tax planning and advice are only as good as the records underneath them. If your books are months behind, start with a catch-up and then add monthly bookkeeping.

If you are unsure where you stand, a short consultation will tell you what is missing.