CPA vs Accountant vs Bookkeeper vs Tax Preparer

Bookkeeper

A bookkeeper records day-to-day transactions, reconciles bank accounts, manages accounts payable and receivable, and produces basic monthly reports. Most bookkeepers are not licensed; they may hold a QuickBooks ProAdvisor cert or an AIPB credential.

• Records transactions in QuickBooks/Xero
• Reconciles accounts monthly
• Runs A/P and A/R
• Produces P&L and balance sheet
• Typical rate: $30–$80/hr or $300–$1,200/mo

Accountant (non-CPA)

An accountant typically holds a bachelor's degree in accounting and can prepare more complex financial statements, set up your chart of accounts, and handle internal controls — but cannot sign attest work or represent you before the IRS unless they're also an EA.

• Designs chart of accounts
• Prepares GAAP-style financial statements
• Handles cost accounting and inventory
• Cannot sign audit/review reports
• Typical rate: $50–$150/hr

Tax preparer

Anyone with a PTIN can prepare returns for compensation. Many are seasonal. Enrolled Agents (EAs) are tax preparers licensed by the IRS and can represent clients in IRS proceedings, but cannot sign attest work. Use a tax preparer for straightforward returns where you don't need year-round planning.

• Files annual federal and state returns
• EAs can represent clients before the IRS
• Limited or no planning between filing seasons
• Typical fee per return: $200–$1,500

CPA (Certified Public Accountant)

A CPA is licensed by a state board, has 150 hours of accounting education, has passed the four-part Uniform CPA Exam, and meets experience requirements. CPAs can sign attestation work (audits, reviews, compilations), represent clients before the IRS in any matter, and are bound by AICPA ethics.

• Files complex returns and handles audits
• Signs audit, review, and compilation reports
• Provides tax planning and advisory
• Represents you in IRS audits and appeals
• Typical rate: $150–$600/hr

Which one do you need?

• Just need books kept current → bookkeeper
• Need books + management reporting → accountant or controller-level bookkeeper
• Need a simple return filed → tax preparer or EA
• Need planning, audits, attestation, or IRS representation → CPA
• Most growing businesses use a stack: bookkeeper + CPA, sometimes plus a fractional CFO