The role of a bookkeeper is to reconcile transactions, send and chase invoices, run payroll and ensure the smooth day to day running of your financial records. They lay the groundwork for an accountant to then review your accounts with a fine toothcomb, prepare financial reports, complete your business tax returns and offer strategic financial advice. An accountant can definitely provide bookkeeping services, while a bookkeeper may not be able to provide accounting services.

In terms of costs, you’re likely to find much cheaper starting prices if you hire a bookkeeper – especially if you hire a self-taught “kitchen table” or self-employed bookkeeper. The starting cosr to hire a bookkeeper is around $30 to $35 p/hour, whereas for an accountant the average hourly rate is around $50 to $60. That said, accountants may charge a similar fixed price to bookkeepers for bookkeeping services such as bank reconciliation, handling accounts payable and monthly reporting.

Shop around, get different quotes and remember that accountants tend to be the better option if you're looking to complete more complex accounting tasks, prepare EFY financial reports and get strategic advice to make key decisions for your business.