A bookkeeper records the money: every sale, bill and bank line, reconciled each month. An accountant turns those records into reports, forecasts and tax returns. A CPA is an accountant licensed by a state board after an exam and set education and experience. You need a CPA for audits and attested statements, and often want one for complex tax work.
The short answer
- Bookkeeper: records, reconciliations, monthly close. Lowest cost.
- Accountant: reports, analysis, budgets, often tax returns. Middle cost.
- CPA: all of the above, plus licensed work such as audits and reviews. Highest cost.
Most small companies need a bookkeeper every month and a CPA or other credentialed tax pro once or twice a year.
Who does what
Bookkeeper
A bookkeeper keeps the ledger. They categorize transactions, reconcile bank and card accounts, track invoices and bills, and close the books each month. The BLS says certification is not usually required, though some bookkeepers earn one to show their skills. Most learn on the job.
Accountant
An accountant works one level up. They read the books, prepare financial statements, find problems in margins or cash, and plan taxes. Many prepare tax returns. The Bureau of Labor Statistics says most accountants hold a bachelor's degree in accounting or a related field.
CPA
A Certified Public Accountant is licensed by a state board of accountancy. To earn the license, a candidate passes the Uniform CPA Exam and meets the state's education, experience and ethics rules. The traditional path needs 150 semester hours of college, about 30 more than a typical degree, plus one year of experience.
That is changing. In 2025, the AICPA and NASBA approved model rules for another path: a bachelor's degree, two years of experience and the exam, as the Journal of Accountancy reported. Each state must adopt it before it applies there.
In the US, audits and reviews of financial statements are restricted to licensed CPAs working through CPA firms, under state accountancy laws modelled on the Uniform Accountancy Act. Each state sets its own rules. The BLS also notes that anyone filing reports with the Securities and Exchange Commission must be a licensed CPA.
Enrolled agent, the fourth option
For tax work alone, an enrolled agent is worth knowing. The IRS licenses enrolled agents after a three-part exam, and requires 72 hours of continuing education every three years. CPAs, enrolled agents and attorneys all have unlimited rights to represent clients before the IRS, including audits, collections and appeals. A preparer with no credential cannot represent you in those matters.
The cost order
Wages give a fair picture of the order. These are US medians from the BLS, for May 2025:
- Bookkeeping, accounting and auditing clerks: $24.36 an hour, or $50,670 a year.
- Accountants and auditors: $40.23 an hour, or $83,680 a year.
The BLS does not split out CPAs, and firms bill clients at much more than wages, to cover overhead and profit. The order still holds: bookkeeper, then accountant, then CPA. A bundle can show how the parts price. Bench, an online service, lists bookkeeping at $399 a month and bookkeeping plus business tax filing at $649 a month, as of October 2026, in US dollars.
The lesson is simple. Do not pay CPA rates for data entry. Do not ask a bookkeeper to answer a tax question that needs a license.
What you need at each stage
Just started, simple income
- Accounting software you keep yourself, or a low-cost bookkeeping service.
- A CPA or enrolled agent once a year for the tax return and a planning call.
Steady revenue, a few staff
- A monthly bookkeeper, in-house part-time or outsourced.
- A CPA or enrolled agent for returns, quarterly estimates and entity questions.
- Payroll through a provider, with the bookkeeper checking it matches.
Growing fast, loans or investors
- A bookkeeper for the daily work.
- An accountant or fractional controller for monthly reports, budgets and cash forecasts.
- A CPA firm for tax planning, and for reviewed or audited statements if a bank or investor asks for them.
How to choose and check
- Ask what credential they hold and in which state. Check a CPA license on the state board's site.
- For an enrolled agent, ask for their enrollment and check it with the IRS.
- Ask who does the work and who reviews it.
- Ask how they price: hourly, fixed monthly or per return.
- Ask what they need from you each month and by when.
- Get the scope in writing, including which returns are included.
Watch for these red flags:
- A tax preparer who will not sign the return they prepared
- Fees based on the size of your refund
- No engagement letter that says what is included
- A bookkeeper giving firm tax advice without a credential
- Which parts of this would you do yourself, and which would a junior or a bookkeeper do?
- Are you a CPA, an enrolled agent or neither? Licensed in which state?
- Can you represent me if the IRS sends a letter?
- How do you price bookkeeping, tax returns and planning calls?
- What did a client like me, with [revenue] and [number] staff, pay last year?
- Do you work in QuickBooks, Xero or something else?
- When would I hear from you outside tax season?
Related reading
For the records side, read bookkeeping basics for small business and QuickBooks vs Xero. For payroll, which many accountants check but do not run, see QuickBooks vs Gusto. Licensing and tax rules differ by state and country, so confirm what applies to you with a local professional.