What does a bookkeeper actually do?

Categorises transactions, reconciles accounts to statements, chases documentation, and produces monthly financials. What they generally do not do is give tax advice or file returns — that is an accountant, and the two roles are frequently confused when buying.

Do I need both a bookkeeper and an accountant?

Once there is real volume, usually yes. The bookkeeper maintains the records through the year; the accountant advises on structure and files returns. Paying an accountant to do bookkeeping is an expensive way to buy data entry.

Can I catch up a year of neglected books?

Yes, and it is called a cleanup engagement. It costs several times what maintaining the books would have, because reconstructing categorisation from bank statements without receipts is slow and partly guesswork.

Bookkeeping and accounting for founders

Guide · 1 min read

Software, bookkeeper or accountant: when to upgrade

Doing it yourself is genuinely fine for longer than most providers admit. Here are the specific triggers that mean it no longer is.

The short answer

Software plus an hour of your own time each month is sufficient while transaction volume is low and the business is simple. The usual switching points are roughly 100 transactions a month, holding inventory, operating in multiple currencies, or taking on employees.

Your situation	What you probably need	Indicative cost
Under ~50 transactions/month, one currency	Software plus your own hour	$15–$50/mo
100+ transactions, or multi-currency	Bookkeeper, monthly	$200–$600/mo
Inventory, or multiple entities	Bookkeeper plus accountant at year end	$400–$1,200/mo
Employees on payroll	Payroll provider plus bookkeeper	Add $40–$150/mo
Raising, or preparing to sell	Accountant on accrual basis	$1,000+/mo

Indicative market ranges as at August 2026, not quotes.

The triggers that actually matter

Volume. Past roughly 100 transactions a month, the monthly hour becomes a monthly afternoon.
Inventory. Landed cost and stock valuation are where DIY books most often go wrong.
Multiple currencies. Booking everything at today's rate produces numbers that are simply incorrect.
Employees. Payroll has its own deadlines and its own penalties, separate from income tax.
Outside money. Investors and lenders want accrual statements they can rely on.

Bookkeeping

Monthly reconciliation and clean categorisation, with financials ready for a tax return or a data room instead of a shoebox and a deadline.

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Frequently asked questions

What does a bookkeeper actually do?: Categorises transactions, reconciles accounts to statements, chases documentation, and produces monthly financials. What they generally do not do is give tax advice or file returns — that is an accountant, and the two roles are frequently confused when buying.
Do I need both a bookkeeper and an accountant?: Once there is real volume, usually yes. The bookkeeper maintains the records through the year; the accountant advises on structure and files returns. Paying an accountant to do bookkeeping is an expensive way to buy data entry.
Can I catch up a year of neglected books?: Yes, and it is called a cleanup engagement. It costs several times what maintaining the books would have, because reconstructing categorisation from bank statements without receipts is slow and partly guesswork.

Sources

IRS — Recordkeeping

Last reviewed August 23, 2026. Verify against the primary source before acting.

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