If you’re hiring your first finance employee, it’s easy to get confused by all the job titles. The accounting clerk vs bookkeeper question comes up constantly.
A bookkeeper manages the complete financial records of a business, usually a small one. An accounting clerk focuses on one specific area, such as accounts payable or payroll, as part of a larger finance team.
That one distinction changes what you should hire, what you’ll pay, and what happens at tax time.
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What is an accounting clerk?
An accounting clerk focuses on one part of the accounting process. Instead of handling everything, they become responsible for one specific task, usually in a company with a finance department large enough to divide the workload.
Common accounting clerk roles include:
processes supplier invoices and makes sure bills are paid on time.
sends customer invoices and follows up on overdue payments.
manages employee pay, deductions, and payroll records.
prepares and issues customer invoices.
Most accounting clerks report to a senior accountant or finance supervisor. They don’t manage the company’s complete financial records because their job is to stay accurate and efficient in one specific area.
That’s also why comparing a bookkeeper vs accounts payable clerk isn’t really an even comparison. An AP clerk handles one of the many tasks that a bookkeeper is normally responsible for.
The U.S. Bureau of Labor Statistics groups these roles together as bookkeeping, accounting, and auditing clerks, with a median pay of $49,210 a year as of May 2024.
What does a bookkeeper do?
A bookkeeper handles much more than one task. In a small business, one bookkeeper does the work that several accounting clerks would handle in a larger company.
That includes recording sales and expenses, reconciling bank and credit card accounts, managing accounts payable and receivable, and preparing monthly financial reports.
You may also hear the term “full-charge bookkeeper.” This refers to someone who manages the entire bookkeeping process, including payroll and month-end closing, without needing day-to-day supervision from an accountant.
Most small businesses don’t need several specialists. They need one person or one bookkeeping team to keep every part of the financial records accurate. That’s exactly what our monthly bookkeeping services do.
Accounting clerk vs bookkeeper: the differences
Here’s how the two roles compare side by side:
| Feature | Accounting clerk | Bookkeeper |
|---|---|---|
| Scope | One specialized function (AP, AR, payroll) | Complete financial records, start to finish |
| Typical employer | Larger companies with finance departments | Small businesses, or works independently |
| Supervision | Reports to an accountant or supervisor | Works directly with the owner |
| Education | High school diploma and sometimes college credits | No degree required. AIPB or NACPB certification adds credibility |
| Output | Clean data in their lane | Financial statements you can use |
Neither of these jobs requires any college degree.
In the United States, the most recognized credentials are voluntary certifications from the American Institute of Professional Bookkeepers (AIPB) and the National Association of Certified Public Bookkeepers (NACPB), along with software certifications such as QuickBooks ProAdvisor.
In the small businesses we work with, someone hired as an accounting clerk at one company may be doing the same work as a bookkeeper or accounting assistant somewhere else. Accounting assistant duties are very similar to clerk responsibilities, with some additional office support. “Accounting technician” is a formal credential in countries like Canada and the UK but is only occasionally used in the United States.
So, the title doesn’t matter. What matters is how much of the company’s financial records that person is responsible for.
Where accountants, CPAs, and tax preparers fit in
The accounting clerk vs bookkeeper comparison is really part of a bigger conversation about accounting vs bookkeeping and who does what.
It includes four levels:
Clerks and bookkeepers record transactions: They create and maintain accurate financial records that everything else depends on.
Accountants review and interpret those records: They take the records, make adjusting entries, analyze financial results, and help business owners make informed decisions.
The difference between an accountant and a bookkeeper isn’t about skill or importance. One keeps the records accurate, and the other uses those records to provide financial advice.
CPAs are licensed accountants: A common misconception is that every accountant is a CPA, but that’s not true. A CPA has passed the Uniform CPA Examination and holds a license from a state board of accountancy. Many accountants never become CPAs.
According to the BLS, accountants earn a median annual salary of $81,680, which is one reason you don’t want to pay accountant rates for bookkeeping work.
Tax preparers focus on filing tax returns: Anyone with an IRS Preparer Tax Identification Number (PTIN) can prepare federal tax returns, but credentials vary widely.
According to IRS guidance, only CPAs, enrolled agents, and attorneys have unlimited rights to represent taxpayers before the IRS during audits, collections, and appeals.
That’s why the CPA vs tax preparer discussion is about more than filing taxes, our full bookkeeper vs CPA comparison breaks down each option in detail. A seasonal tax preparer helps you submit your return. A CPA or enrolled agent can also help you plan ahead and represent you before the IRS if something goes wrong.
For most small businesses, a bookkeeper is needed throughout the year, while accountants, CPAs, and tax professionals are hired when specialized advice or tax work is required.
As businesses grow, some also need higher-level financial guidance. That’s where fractional CFO services provide strategic support without the cost of hiring a full-time CFO.
Do bookkeepers do taxes?
No. Bookkeepers get your books ready for tax season, but they usually don’t file your tax returns.
A good bookkeeper keeps your records organized throughout the year. Every transaction is categorized correctly, your accounts are reconciled, and your financial statements are ready for whoever prepares your taxes. Unless a bookkeeper also has a PTIN or other tax credentials, they don’t prepare or sign tax returns.
For most small businesses, the best approach is simple. Work with a bookkeeper all year to keep your records accurate, then have a CPA or tax professional file your return. The bookkeeper keeps everything organized at a much lower hourly cost, and the CPA can focus on tax filing instead of spending hours fixing bookkeeping mistakes.
This is general information, not personalized tax advice. Always speak with a licensed CPA or tax professional about your specific tax situation.
Which one does your small business need?
This is the approach we usually recommend.
For businesses under about $5 million in annual revenue, you almost never need an accounting clerk. Accounting clerks belong in larger finance departments where different people manage different tasks. Most small businesses need someone who manages the entire bookkeeping process, along with an accountant or CPA during tax season. Hiring a full-time accounting clerk earning more than $49,000 a year, plus benefits, isn’t the best use of your budget at this stage.
As your business grows, your needs may change. If one area, such as customer invoicing, starts taking up someone’s entire week, hiring a dedicated accounts receivable clerk may be a good idea. But that happens after you already have a solid bookkeeping system.
Outsourcing is a third option that others ignore.
For most small businesses, monthly bookkeeping services cost between $150 and $600 per month, which is far less than the cost of employing a full-time clerk. Instead of covering just one task, outsourced bookkeeping manages your complete financial records. That’s one reason remote bookkeeping has become the standard choice for many US small businesses, and it’s the model we use at Predawn Accounting to support more than 135 clients across e-commerce, real estate, SaaS, and marketing agencies.
If you’re trying to decide which option is right for your business, we can help. Book a free 30-minute consultation. We’ll look at how your books are handled, tell you which role (if any) you actually need, and give you a clear quote.
FAQs
What pays more, bookkeeping or accounting?
Accounting generally pays more. According to the BLS, bookkeeping and accounting clerks earn a median salary of $49,210, and accountants earn about $81,680. Accountants are responsible for financial analysis, reporting, and advice, which is why their salaries are higher. For business owners, this is another reason not to pay accountant rates for bookkeeping work.
Are a bookkeeper and an accounting clerk the same thing?
Not exactly. The titles are sometimes used interchangeably, but the responsibilities are different. Both work with financial records, but a bookkeeper manages the complete records for a business, and an accounting clerk handles one specific part of the accounting process. When hiring, pay more attention to the actual job responsibilities than the title.
Do I need a bookkeeper or an accountant for my small business?
Most small businesses need both, just at different times. A bookkeeper keeps your financial records accurate throughout the year, and an accountant or CPA helps with tax filing, planning, and important financial decisions. Starting with an accountant but not a bookkeeper costs more because the accountant first has to clean up the records.
What is the lowest position in accounting?
What is the lowest position in accounting?
Entry-level accounting clerk positions, such as accounts payable clerk, accounts receivable clerk, or billing clerk, are usually considered the starting point. These jobs require only a high school diploma and on-the-job training. Many people later move into bookkeeping or junior accounting positions. Even though they're entry-level roles, accurate work at this stage is essential because mistakes can affect every subsequent financial report.
Meet Muhammad Aqib: Our Expert in Financial Planning and Analysis
He is the founder of Predawn Accounting and has more than six years of experience helping small businesses maintain organized financial records, improve reporting accuracy, and better understand their financial position.
He is a qualified Chartered Accountant from ICAP Pakistan, holds a BS in Accounting and Finance, is an ACCA Candidate, an FMVA Certified professional, has also earned a Financial Planning and Analysis certification from the Corporate Finance Institute (CFI) and is a Certified QuickBooks ProAdvisor with experience working across industries, including real estate, construction, e-commerce, SaaS, and marketing agencies.
Before founding Predawn Accounting in 2023, Mr. Aaqib worked with businesses across multiple industries, doing bookkeeping, financial reporting, financial modeling, fractional CFO, and other projects. He has also completed financial projects that helped businesses raise funding and improve financial operations.
