Let’s be real—when you start a business, dealing with the financial side can feel overwhelming. Taxes, bookkeeping, financial reports… there’s a lot to keep up with, and most business owners don’t want to become experts in it all.
That’s where accounting professionals come in. But here’s the catch—not all financial professionals do the same thing. So, who should you hire? Let’s break down when you should hire an accountant vs a tax preparer or bookkeeper in plain English.
Accountants: The Big Picture Planners
Think of accountants as your financial strategists. They look at your business’s overall financial health, make sure your records are accurate, and help you understand where your money is going.
Here’s what accountants might do (because not all of them do everything):
✅ Bookkeeping & financial record-keeping
✅ Tax preparation & planning
✅ Payroll & sales tax support
✅ Financial statement analysis
✅ Audit & compliance work
The key here is not all accountants are the same. Some focus on taxes, some specialize in financial reporting, and others act as virtual CFOs. If you’re hiring an accountant, make sure the services they provide match what you need.
And one more thing—not all accountants are CPAs. A CPA (Certified Public Accountant) has gone through extra training, passed a tough exam, and keeps up with ongoing education. If you specifically want a CPA, check their credentials before signing on.
Bookkeepers: The Detail Keepers
Accountants look at the big picture while bookkeepers focus on the day-to-day details—making sure your financial records are accurate, organized, and up to date.
A bookkeeper’s core job is to:
✅ Categorize income and expenses (so you know where your money is going)
✅ Reconcile bank, credit card, and loan accounts (to catch errors or missing transactions)
✅ Prepare financial reports like Profit & Loss and Balance Sheets (so you actually see your business’s financial health)
Bookkeepers keep your financial house in order. But while they organize your finances, they usually don’t provide tax strategy or financial forecasting—that’s where accountants step in.
Tax Preparers: The Compliance Experts
When you hear “tax preparer,” you probably think of someone who files your taxes once a year and then disappears. And in some cases, that’s true. But a good tax preparer does more than just submit forms—they help you plan ahead so you’re not hit with an unexpected tax bill.
A tax preparer should:
:✅ File your federal and state tax returns accurately and on time
✅ Make sure you’re compliant with IRS and state tax laws
✅ Help you plan ahead for estimated tax payments so there are no surprises
✅ Assist with IRS and state correspondence (because dealing with tax agencies alone is not fun)
Here’s what tax prep doesn’t include unless you arrange it separately:
🚫 Sales tax filings – That’s a different beast from income tax
🚫 Payroll tax compliance – If you have employees, payroll taxes need separate attention
🚫 State-required reports for LLCs and corporations – Don’t assume these are included
🚫 Personal property tax filings – Some states require this for business equipment
🚫 Legal document filings – Changing your business structure? That’s a legal process
A tax preparer is essential for keeping your business compliant, but they don’t usually handle bookkeeping or financial strategy. If you want someone to help you make tax-smart decisions year-round, look for one who offers tax planning—not just tax filing.
Financial Planners: The Money Strategists
While accountants help track what’s happening in your business, financial planners help you decide what to do with your money. Their focus is long-term—retirement planning, investments, wealth management, and insurance.
If you’re wondering what to do with your profits—whether that’s saving, investing, or reinvesting into your business—working with a financial planner (preferably one with a CFP® designation) might be a good move.
Accountant vs Bookkeeper vs Tax Preparer?
Choosing the right financial professional depends on what you need help with:
🔹 Need someone to track and organize your transactions? → Hire a bookkeeper.
🔹 Need someone to file your taxes and keep you compliant? → Hire a tax preparer.
🔹 Need someone to help with financial planning, strategy, or cash flow forecasting? → Hire an accountant.
🔹 Need help investing or planning for the future? → Hire a financial planner.
Many businesses need more than one of these professionals, so don’t be afraid to build a financial support system that fits your needs.
How Little Fish Accounting Does It Differently
Most accounting firms focus on compliance—getting your taxes filed, keeping your books reconciled, and making sure you follow the rules. But at Little Fish Accounting, we take it a step further.
🔹 We specialize in service-based businesses – We exclusively serve professional service providers and intentionally limit the number of clients we take on. This allows us to be fully invested in each business, providing tailored, high-touch financial support that goes beyond the numbers.
🔹 We integrate bookkeeping, tax strategy, and financial advisory – Instead of working with separate providers, we connect the dots to give you a big picture financial strategy.
🔹 We’re proactive, not reactive – No last-minute tax season panic. We help you plan ahead, manage cash flow, and stay ahead of deadlines so you never have to scramble.
🔹 We keep it personal – We intentionally keep our client base small so we can offer high-touch, boutique-level service. And we have dedicated Account Managers who are on hand to answer questions and help guide you. So our clients hear from us, a lot, and we like it that way.
Hiring the right financial professional isn’t just about checking a box—it’s about finding someone who understands your business and helps you make informed decisions.
If you’re looking for a firm that actually gets what it’s like to run a small business and wants to help you grow intentionally, let’s chat.
👋🏾 We’re Little Fish Accounting, a firm that goes beyond the numbers to provide concierge-level care. Our advisory services enables our clients to make strategic decisions for their business, achieving big results with small teams. Interested in learning more? Check out our suite of service offerings.
We also have a podcast, Build to Enough, where we explore practices for sustainably building a business that is aligned with your purpose and values. Let us help you to redefine what success looks like. For more, check out our services below.
💼 Our Services |https://www.littlefishaccounting.com/services
🎙 Build to Enough Podcast | www.littlefishaccounting.com/podcast