When you’re a business owner, you probably use the word accountant to describe anyone who helps with your finances. Whether it’s bookkeeping, payroll, tax preparation, or financial advice, they’re all just “my accountant.”
It’s not until you start shopping for help that things become confusing.
You call a bookkeeper and learn they don’t prepare business tax returns. Then you call a CPA and discover they only prepare tax returns—or if they do bookkeeping, their hourly rate is significantly higher than the bookkeeping service you just spoke with.
So which one do you actually need?
The answer is probably both.
Why Pricing Seems to Be All Over the Place
If you’ve searched Google for bookkeeping or accounting prices, you’ve probably found dozens of different answers.
That’s because every firm structures its services differently.
Some charge by the hour. Others offer fixed monthly packages. Some only prepare tax returns. Others provide bookkeeping but don’t offer tax planning. Every business has a different model, which makes comparing prices difficult.
As a general guideline, Google currently estimates:
- Outsourced bookkeeping: $50 to $95 per hour
- CPA services: $120 to $190 per hour
These are national averages and can vary depending on the complexity of your business and the experience of the professional you’re hiring.
What Does Bookkeeping Actually Cost?
Let’s use a fairly typical small business as an example.
Assume your business has:
- Approximately 100 monthly transactions
- One business bank account
- Payroll
- New Mexico Gross Receipts Tax filings
- Monthly reconciliations
- Depreciable business assets
For many businesses, this work takes around four hours each month.
Using the average hourly rates above, your monthly cost could look something like this:
Bookkeeper
- $50-$95 per hour
- Approximately $200-$380 per month
CPA
- $120-$190 per hour
- Approximately $480-$760 per month
Of course, every business is different. More employees, multiple bank accounts, inventory, or messy bookkeeping can increase the amount of time required.
Is a Bookkeeper Better Than a CPA?
That’s actually the wrong question.
There are outstanding bookkeepers who understand bookkeeping better than some CPAs.
Likewise, there are CPAs with years of tax planning and advisory experience that most bookkeepers simply don’t have.
The goal isn’t finding the “better” professional.
The goal is finding the right professional for the work being performed.
Should a Bookkeeper Prepare Your Business Tax Return?
This is where opinions differ, but ours is fairly straightforward.
Bookkeepers play a critical role in maintaining accurate financial records. That’s their specialty.
Business tax planning and tax preparation require a different skill set.
Unless your bookkeeper also holds professional credentials such as a Certified Public Accountant (CPA) or an Enrolled Agent (EA), we generally believe tax preparation is best handled by someone with specialized tax training.
Accurate bookkeeping leads to accurate tax returns—but bookkeeping and tax planning are not the same service.
Should a CPA Do Your Monthly Bookkeeping?
A CPA certainly can.
The question is whether that’s the best use of your money.
A CPA’s expertise typically lies in areas such as:
- Tax planning
- Business consulting
- Financial analysis
- Entity selection
- Long-term planning
- Compliance oversight
Having a CPA personally categorize bank transactions every month usually isn’t the highest-value use of their time—or your budget.
That’s why many modern CPA firms employ trained bookkeeping professionals who handle the day-to-day accounting while CPAs focus on advisory services and tax planning.
What Most Business Owners Really Want
Most of the business owners we meet aren’t looking to manage three different service providers.
They don’t want:
- One company handling bookkeeping
- Another company processing payroll
- A third person preparing tax returns
They simply want someone to keep everything organized so they can focus on running their business.
That’s why many businesses are choosing full-service CPA firms that combine bookkeeping, payroll, accounting, and tax planning under one roof.
Your books stay current each month.
Your payroll is processed correctly.
Your financial statements are ready when you need them.
And when it’s time to make an important business or tax decision, your CPA already understands your business because they’ve been involved all year—not just during tax season.
The Bottom Line
The decision isn’t really Bookkeeper vs. CPA.
It’s about finding a firm that provides the right people for the right work.
At Arsenault CPA Firm, our bookkeeping professionals keep your financial records accurate and current each month while our CPAs provide oversight, tax planning, and strategic advice. That means you receive timely financial statements, ongoing compliance support, and access to experienced tax professionals—all through one relationship.
Instead of managing multiple providers, you gain a team that’s focused on helping your business grow.
If you’re looking for a simpler way to handle your bookkeeping, payroll, accounting, and tax planning, we’d love to show you how our monthly accounting services can help. Contact Arsenault CPA Firm today for a free consultation.