Home / Questions / What Is the Difference Between Bookkeeping and Accounting?
Last updated 23 October 2026. Written by the Limited Company Accountant UK team, part of Accotax. Figures are for the 2026/27 tax year; always check GOV.UK for the latest rates.
Short answer: Bookkeeping records every transaction as it happens. Accounting takes those records and prepares financial statements, tax returns and advice. Bookkeeping feeds accounting.
At a glance
| Bookkeeping | Recording and reconciling transactions |
|---|---|
| Accounting | Statements, tax, advice and filing |
Who does what
You or a bookkeeper keep the day-to-day records. An accountant uses them to prepare accounts, Corporation Tax and plan tax.
Why both matter
Bad books produce expensive accounts. Good books make year end cheap and tax planning precise.
Want this handled for you?
Fixed monthly fee, named accountant, free first consultation. Get a free quote or call 0203 4411 258.
The bottom line
Bookkeeping records every transaction as it happens. If you would rather not do it alone, our fixed fees start at £45.83 + VAT a month.
Frequently asked questions
Do I need a bookkeeper as well as an accountant?
Not if your accountant also provides bookkeeping, as ours does in the Complete package.
Can I do my own bookkeeping?
Yes, with software. Many directors do and pass the file to us.
Ready for a fixed monthly price?
Our packages start at £45.83 + VAT and cover accounts, tax and deadlines. Get a free quote or call 0203 4411 258.
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