When to Hire a Bookkeeper vs Accountant vs CPA

If you’re growing a business, one of the most overlooked decisions is notwhoto hire for your financials — butwhen.

Bring in help too early, and you’ll burn money. Wait too long, and you’ll end up with messy books, missed deductions, or financial blind spots that cost you far more than you saved.

This guide breaks down when to hire abookkeeper,accountant, orCPAbased on your revenue, complexity, and growth stage.

Looking for a bookkeeper, accountant or CPA? UseSam's Listto find and connect with financial professionals in seconds!

TL;DR: Who to Hire and When

What Each Role Actually Does

Bookkeeper

• Records day-to-day transactions

• Reconciles accounts

• Categorizes expenses and revenue

• Prepares basic financial reports (P&L, balance sheet)

• Uses software like QuickBooks, Xero, or Wave

Bookkeeperskeep the financial engine running and make sure your records are organized. If your books are a mess, your accountant and CPA can't do much.

Accountant

• Analyzes financial reports

• Prepares for tax season

• Creates budgets, forecasts, and helps with financial decisions

• Ensures compliance and financial reporting accuracy

Think of an accountant as your translator between your business operations and your long-term financial goals.

CPA (Certified Public Accountant)

• Can legally represent you in front of the IRS

• Provides audit and assurance services

• Offers tax strategy and compliance support

• Must pass licensing exams and meet state education requirements

Most small businesses don’t need a CPA full-time, but you’ll want one on-call for advanced issues.

Sam’s List POV: What Founders Get Wrong

"If you're spending more than 30% of your time doing bookkeeping, it's time to hire. And if you're scaling, hire a boutique accounting firm that gets your industry and your stage. They can handle bookkeeping, tax, and strategy all under one roof."

— Kimi, Co-founder ofSam's List

"Ecom brands especially need help—inventory is no joke. Bad books don’t just hurt during tax time. They can hide cash flow issues or hold you back from scaling."

"Don’t wait until things break. One founder told me their cash balance looked fine…until their accountant caught that they were 45 days behind on receivables. That’s the difference between DIY and proactive finance."

Red Flags That You're Waiting Too Long

• You only look at financials during tax season

• You're behind on invoicing or vendor payments

• You don't know your monthly burn or profit margins

• You're making decisions off your gut, not data

• You can't easily pull up a P&L or balance sheet

If any of those hit home, you're likely overdue.

Q&A

When should I hire a bookkeeper?

When you're generating consistent revenue (usually $100K+ annually) or spending more than a few hours a week in spreadsheets. Bookkeepers help you stay organized, avoid stress during tax time, and make better financial decisions.

Do I need a CPA or just an accountant?

If your taxes are straightforward, an accountant is often enough. But if you're facing complex tax laws, audits, or need financial statements for investors, you'll need a CPA.

Is it okay to DIY bookkeeping forever?

For very small businesses, yes. But as you scale, DIY bookkeeping gets risky. One mistake can snowball. Most founders outgrow DIY bookkeeping by the time they hit $100K–$250K.

What's the difference in cost?

Bookkeepers usually cost$200–$600/month. Accountants can run $1,000–$5,000/year. CPAs are the most expensive, but typically hired for specific services (e.g., year-end tax prep).

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Author: Kimi, Co-founder of Sam's List
Kimi writes about what she's learning while building Sam's List and shares honest takeaways from her conversations with accountants and financial advisors across the country. None of this is financial advice—just the stuff most people wish someone told them sooner.