CPA vs. Tax Advisor vs. Bookkeeper: Who Does What, And When You Need Each

Even seasoned business folks—and sometimes folks in the accounting world—get a little fuzzy about who does what. It’s super common—the world of finance is full of overlapping job titles, mysterious acronyms, and a ton of jargon that can make anyone’s head spin. It’s way better to ask than to let silent confusion turn into real trouble down the road.

So, CPA, tax advisor, and bookkeeper—these roles overlap a bit, and it can get confusing, but once you see the big picture, it all makes a lot more sense.

CPA (Certified Public Accountant)

A CPA for business and personal is like the “all-rounder” of the accounting world, but with special credentials and expertise. Think of them as the quarterback—they can do what bookkeepers and tax advisors do, but with more training, authority, and responsibility.

• They do all the tasks of a bookkeeper and tax advisor—plus more!
• Spotting tax savings you never knew existed (think: “found money”).
• Prepare and review financial statements for accuracy and compliance.
• File business and personal tax returns.
• Explaining a gnarly-looking spreadsheet in a way that makes you say, “Oh, that’s all it is?”
• Audit financial records (official checks for accuracy, often required by banks or investors).
• Give advice on business decisions, growth, mergers, and more. 
• Keeping you out of trouble with the IRS—no scary letters, no stress.

CPAs are licensed pros who can handle everything from basic bookkeeping to high-level financial strategy and legal representation. Helping you see not just where your money’s been, but where it could go—forecasts, growth strategies, and all that jazz.

Bookkeeper

Think of a bookkeeper as the meticulous note-taker of your business. Their job is to record and organize every penny that comes in and goes out. They keep the financial “books”—think of them as the day-to-day historians of your money.

What they used to do:

• Record daily transactions (sales, purchases, receipts, payments).
• Organize receipts, invoices, and bank statements.
• Reconcile (double check) bank accounts to make sure the records match up.
• Produce basic financial reports, like profit & loss statements or balance sheets.

Bookkeepers make sure your financial data is accurate and up-to-date, so everything is in order for you or your accountant.

Tax Advisor (sometimes called Tax Consultant)

A tax advisor is like your personal navigator through the maze of tax laws. They know all the rules, loopholes, and strategies for keeping your tax bill as low as legally possible.

• Advise you on how to structure your finances or business to save on taxes.
• Help with tax planning (not just filing, but planning ahead to reduce taxes).
• Stay up-to-date on changing tax laws and regulations.
• Often, they help with complicated tax issues—like international taxes or big investments.

Tax advisors help you make smart decisions all year round, so you don’t pay more taxes than you have to.

Quick Comparison Table

*Some tax advisors are also CPAs or have special certification to file taxes.

• Bookkeeper—Keeps your diary up to date.
• Tax Advisor—Makes sure your diary entries won’t get you in trouble with the tax office.
• CPA—Can write the diary, give you advice, defend your diary if anyone questions it, and help you use it to grow your life or business.

You don’t always need all three, but for a growing or complex business, it’s great to have each in your corner!

When to Bring in Bookkeepers, Tax Advisors, and CPAs (and When to DIY!)

Let’s talk options for bringing these “heavy lifters” onto your team, and when it’s smart to call in the pros versus just keeping things light.

Bookkeeper

• You have a steady stream of transactions (sales, expenses, receipts) each month.
• You hate dealing with paperwork or find yourself falling behind on tracking money.
• You want clean, organized records ready for tax season or business decisions.

Full-time? Only if your business is big and humming all the time.

Part-time or occasional? Perfect for most small businesses—maybe just a few hours a week or month, or even just a couple times a year to tidy up.

Tax Advisor

• You expect your taxes to get complicated (business ownership, lots of deductions, investments, international stuff, etc.).
• You want to plan ahead and save on taxes, not just scramble at the last minute.
• You’re making big decisions (buying/selling property, changing business structure) and want to know the tax impact.

Rare you need them on a full-time basis, unless you’re running a big company or have really complex finances. Occasional? Very common—meet once or twice a year, or just for “big moments” (like business formation, expansion, or an IRS notice).

CPA

• You need formal financial statements (for banks, investors, or government).
• You’re facing an audit, or want someone who can represent you with the IRS.
• You want high-level advice on your business’ financial health and long-term growth.
• You want “one-stop shopping” (a CPA can usually handle tax advising and some bookkeeping too).

For big businesses, you need them as a full-time hero. For small businesses, usually not. Great if you just need annual tax filing, an audit, or a check-in on your books – then go partly.

Smart Ways to Mix and Match

• Small & Simple Biz—Maybe just a bookkeeper occasionally, and a CPA at tax time.
• Growing Biz—Bookkeeper (part-time or outsourced), tax advisor for planning, CPA as needed for complex stuff.
• Big/Complex Biz—Likely a full-time bookkeeper, regular tax advisor, and a CPA on retainer.

Many solo entrepreneurs and small businesses start with just a bookkeeper (or even DIY software), then add a CPA or tax advisor as things get more complicated.

The right mix depends on your business’s size, complexity, and your own comfort level with numbers. Start small and scale up your “heavy lifters” as your needs grow—and don’t hesitate to call in a pro when you hit a wall. That’s what they’re there for!

No CPA worth their salt ever rolls their eyes at an honest question from your side—it’s all about how you learn, and how you keep your business healthy.