Bookkeeping is the day-to-day work: recording income and expenses, reconciling bank and credit card statements, and keeping your transaction history organized and accurate.

Accounting builds on that foundation. It takes the data bookkeeping produces and turns it into financial statements, tax filings, and the kind of reporting you'd use to make decisions or apply for financing.

In practice, most individuals and small businesses need both, often working together. Clean books make accurate accounting possible, and accurate accounting is what keeps you compliant and audit-ready.

If your records have fallen behind, catching up on bookkeeping is usually the first step before any tax planning or resolution work can move forward.