# What is the difference between bookkeeping and accounting?

Bookkeeping is recording the day-to-day money: sales, expenses, invoices, receipts and bank activity. Accounting uses those records to prepare financial statements and tax returns, check results and plan. The SBA notes that a bookkeeper provides basic day-to-day functions at a lower cost, while a CPA usually offers more tailored service. Many owners keep their own books, for example in a ProfitDrawer bookkeeping spreadsheet, and hire an accountant for the 2026 return due April 15, 2027.

| | Bookkeeping | Accounting |
|---|---|---|
| Main job | Record each transaction | Interpret and report the numbers |
| How often | Weekly or daily | Monthly, quarterly, yearly |
| Typical output | Income and expense records, unpaid invoice list | Profit and loss statement, balance sheet, tax return, tax planning |
| Who does it | Owner or bookkeeper | Accountant or CPA |

Good bookkeeping makes accounting faster and cheaper: an accountant who receives clean yearly totals by category, a mileage log and receipts spends less time sorting.

If your business is a sole proprietorship with simple income and expenses, a weekly bookkeeping habit plus a once-a-year tax appointment is a common setup. Payroll, inventory, several owners or an S corporation election usually call for more accounting help.

- Source: [Manage your finances (SBA)](https://www.sba.gov/counseling/manage-your-business/#manage-your-finances)
- Updated: 2026-10-29
- Published: 2026-10-29
- Category: Bookkeeping basics
- Canonical: https://profitdrawer.com/answers/what-is-the-difference-between-bookkeeping-and-accounting.html
- Publisher: ProfitDrawer (https://profitdrawer.com)