Bookkeeping or Accounting: Which Financial Service Fits Your Business Needs?

Bookkeeping vs. accounting are two different processes! Bookkeeping is the process of systematically recording all financial transactions a business makes. It ensures every payment, sale, and expense is tracked. Accounting goes beyond record-keeping. It analyzes this information and generates reports. 

Invoices + Payroll + Taxes = the more you scale, the more the numbers start blurring! 

Yes, that’s the story of hundreds of D2C companies and SMBs. With business growth, not only sales, but also your transactions, expenses, and reporting headaches are multiplied. 

At this point, many founders realize they’re spending more time managing books than building their business. If you belong to the same league, there is a solution! You can consider outsourcing finance and accounting tasks. 

In 2025, instead of trying to do it internally, several small businesses have now delegated bookkeeping, payroll, and financial reporting to experts who handle it daily. Studies show that the U.S. finance and accounting outsourcing market is nearing $55 billion in 2025, with bookkeeping alone making up over $11 billion. 

So, want to focus more on growth instead of spreadsheets? In this article, you’ll learn the bookkeeping accounting differences, when to hire each, and how outsourcing both can save you time and money! But firstly, let’s understand the meaning of both these processes. 

What is Bookkeeping?

Bookkeeping means keeping a daily record of all the funds that go in and out of your business. 

Performed by “bookkeepers”, they are usually the first point of contact if you want to know how much your business has earned, what’s been paid, or what’s still due.

A bookkeeper’s main tasks include:

• Recording income and expenses
• Tracking sales, refunds, and payments
• Sending invoices + checking if customers have paid
• Paying bills and suppliers
• Matching company records with bank statements
• Preparing records for tax filing
• Handling payroll

So, bookkeepers manage your every financial detail so accountants can prepare reports and file taxes accurately.

What is Accounting?

Bookkeepers only record the numbers! Accountants use those numbers to analyze your business’s complete financial picture. They handle tasks such as:

• Preparing and reviewing financial reports
• Forecasting profits, expenses, and cash flow
• Planning for taxes and savings
• Filing tax returns
• Advising on business growth and compliance
• Ensuring payroll and taxes follow legal rules
  

Some accounting companies in the USA also offer bookkeeping services. 

What is Bookkeeping vs Accounting? 

Bookkeeping and accounting are separate but connected jobs! Bookkeeping records a business’s daily monetary affairs, and accounting uses those records to explain the business’s financial health. To better decide who to hire and when, check out the bookkeeping and accounting differences below:

Which Financial Service Fits Your Business Needs?

Is managing invoices, taxes, and cash flow too complicated? You are not alone! In 2025, several growing D2C companies earning $5M+ revenue are at a point where they are searching for accounting outsourcing companies. 

Studies show that about 37% of U.S. companies have already outsourced their accounting or bookkeeping tasks in 2025. But bookkeeping vs. accounting – what does your business truly need? You may follow this approach:

Initially, Start with Bookkeeping!

Bookkeeping is your financial groundwork. Without accurate daily records, even the best accountant can’t give you reliable advice. You should outsource bookkeeping services when:

• You spend more time entering invoices than growing your business.
• You don’t have clear monthly numbers on income, expenses, or cash flow.
• Your books are never “ready” at tax time.
• You can’t track which clients have paid or which bills are overdue.
• Your payroll, tax filings, or reconciliations are not completed before the deadlines.

In such cases, outsourcing makes sense. An outsourced bookkeeper will:

• Record all sales, purchases, and payments.
• Reconcile your accounts with the bank.
• Handle payroll, invoices, and basic tax documentation.
• Keep your books accurate and ready for review by an accountant.

Gradually, Bring in Accounting!

Once you have prepared your books, go for an accountant. They can look at your accounts from angles of profitability, growth, and tax strategy. Ideally, you should hire the US accounting firms when:

• You need to prepare or file taxes.
• You want to save on taxes legally through planning.
• You’re applying for a business loan, investor funding, or government grant.
• You’re adding new products, employees, or locations.
• You need financial forecasts, budgets, or performance reports.

An outsourced accountant will prepare your financial statements and reports. Additionally, they can file taxes, forecast profits, and ensure compliance.

What is The Ideal Setup for Growing D2C Companies?

Studies show that through outsourcing, you can achieve cost savings of about 20 to 60%. However, it can be achieved only when you outsource both, but in sequence:

Searching for Accounting Outsourcing Companies? Choose Atidiv in 2025!

Did you know? About 40% of finance leaders now intend to outsource more functions in response to cost and labor pressures. But why? Outsourcing saves cost and time! You only pay for what you need, and professionals handle the rest. 

Additionally, most accounting companies in the USA now even offer combined packages where bookkeepers and accountants work under one roof. But do you need both? It depends on your business needs! Ideally, you should start with a bookkeeper and later add an accountant to grow strategically. 

Enjoy the Atidiv Advantage!

If you are searching for accounting outsourcing companies, you can consider hiring Atidiv. We are a finance and accounting outsourcing firm with 16+ years of experience. Our expert team has over 390,000 chartered accountants and CPAs who offer full-cycle bookkeeping and accounting services, such as:

• Daily transaction management
• Accounts receivable/ payable
• Bank reconciliations
• Customized reports
• Financial process setup and optimization
• Forecasting
• Cash flow planning

Additionally, we can integrate with leading accounting platforms like QuickBooks, Sage, Xero, Zoho, and NetSuite. So, make your accounting, our headache! Book a free consultation call to learn how we can help you.

Bookkeeping vs. Accounting FAQs

1. Why should I outsource bookkeeping instead of hiring someone in-house?

When you outsource, you pay only for the work you need. There is no need to run an internal accounting department and incur expenses on:

• Salaries
• Training
• Software subscriptions

Leading accounting outsourcing companies, like Atidiv, already have the tools and experts to keep your books accurate and make your business compliant. At Atidiv, our past clients have saved up to 60% as compared to running in-house teams. 

2. How do I know my financial data is secure when outsourcing?

Reputed firms always use:

• Encrypted systems
• Strict access controls
• Confidentiality agreements

As a VP or director of a D2C company, you should always choose a provider that follows global data security standards and can explain how your information is protected from unauthorized access or loss.

3. Which country is leading the global accounting outsourcing market in 2025?

The U.S. accounts for nearly $62 billion of the world’s outsourcing income! That’s largely because businesses there try to achieve cost savings with accuracy + speed in operations.

4. Why are small and mid-sized businesses outsourcing more now?

Smaller firms can now use the same financial expertise and tools that were once reserved for large corporations. US accounting firms give them access to:

• Advanced software
• Certified accountants
• Real-time reporting

Thus, there is a high adoption rate of outsourced bookkeeping services among growing D2C companies and consumer brands earning $5M+ revenue, as they are not required to hire full-time staff or invest heavily in infrastructure.

5. What Accountants Can Do That Bookkeepers Cannot

When trying to understand bookkeeping versus accounting, you, as a VP or director of a D2C company, must realize that accountants handle more advanced financial work. They are trained to file tax returns and can represent your business if the tax department raises any questions or audits you.

On the other hand, bookkeepers only focus on recording accurate financial data. Next, accountants use that data to:

• Analyse business performance
• Make projections
• Give financial advice

6. What accounting tasks do most businesses outsource in 2025?

Studies show that the most common functions outsourced are:

• Bookkeeping
• Payroll
• Accounts payable and receivable
• Financial reporting

These are repetitive tasks that are time-consuming and prone to errors if managed internally. Thus, most companies prefer outsourcing them to accounting professionals.