Should I Hire a Bookkeeper or Accountant First?

The age-old question! I'm slightly biased, but I'd say it really depends.

However, 100% of the time → clean books makes for an easy tax season.

Here's how I think about it:

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If You're a Simple LLC, Skip the Accountant (For Now)

If you're an LLC taxed as sole prop, that's a simple tax setup. You can DIY your tax filing pretty easily.

But here's what you DO need: clean books. And instead of spending money on an accountant for a straightforward tax return, I'd put that money toward a bookkeeper who can give you insights every single month.

You'll actually know what's happening in your business in real time instead of waiting until tax season to find out where your money went.

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If You're Ready for Tax Strategy

Maybe you're at the point where S-corp election and tax strategy comes into play. That's when I'd look into an accountant.

A good tax strategist can't give you insight if you don't have clean books. Bookkeeping has to be number one.

Your accountant can help with S-corp elections, tax planning, deductions you're missing, and long-term financial strategy. But none of that works if your books aren't accurate.

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What Happens If You Hire an Accountant First

If your books are a mess, your accountant can't give you real tax strategy. They're working with unreliable numbers.

An accountant isn't going to go back through six months of uncategorized transactions—that's not their job. Their job is tax strategy, but only if your data is actually trustworthy.

Some accountants do offer bookkeeping, but then you're paying CPA rates for bookkeeping work.

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Most Businesses Need Both

Your bookkeeper keeps your day-to-day financials organized and up-to-date. Your accountant uses those financials for tax prep and strategic planning.

They work together. But the bookkeeper comes first because they're creating the foundation.

If you can't afford both right now, start with bookkeeping. Once that's solid, bring in the accountant. You'll get way more value from them when they're working with good data (and they'll probably charge you less because they won't be questioning every number).

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If You Can Only Afford One

Choose bookkeeping if:

- Your books are a disaster

- You have no idea what your profit is month-to-month

- You're behind on reconciling

- Tax season stresses you out because you're scrambling

- You're not doing anything complex tax-wise yet

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Choose an accountant if:

- Your books are clean and maintained regularly

- You're making decisions about business structure

- You need tax planning and strategy

- You're earning enough that tax strategy will save you real money

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Most of the time? Bookkeeping first.

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So That's Where the "It Depends" Comes From

It depends on how much you hate doing it, are you even doing it properly yourself, and just the stage your business is in.

If you're barely keeping up with your books—or NOT keeping up—hire a bookkeeper first.

If you're drowning in unreconciled transactions from six months ago, tax strategy isn't your biggest problem. Getting your books in order is.

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The Bottom Line

Clean books come first. Always.

So if you're asking whether to hire a bookkeeper or accountant first, ask this instead: Are my books actually in good shape right now?

If the answer is no (or "I think so but I'm not sure"), start with a bookkeeper. Get your foundation solid. Then bring in the accountant for strategy.

If the answer is yes and you're ready for bigger picture tax planning and business structure decisions, an accountant might be your next move.

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