Can a Bookkeeper Prepare Financial Statements? Quick Guide
- JAFA Accountancy
- 3 days ago
- 2 min read
Can your bookkeeper prepare financial statements or do you need an accountant? Many business owners aren’t clear on where bookkeeping ends and accounting begins. Here’s what a bookkeeper can do and when it’s time to bring in extra help.
What Financial Statements Can a Bookkeeper Prepare?
Yes, a bookkeeper can prepare basic financial statements, but usually for internal use, not official filings.
A bookkeeper can help prepare three main types of financial statements:
Profit and loss statement – outlines your business’s income and expenses over a period, revealing whether you earned a profit or took a loss.
Balance sheet –gives a snapshot of your business’s financial position by listing everything it owns (assets) and owes (liabilities).
Cash flow statement – breaks down the movement of cash into and out of your business.
They’ll also reconcile bank accounts to make sure what’s recorded in your books matches your actual bank activity, which is a key part of maintaining accurate records.
These are great for keeping an eye on your finances day to day. But for official reports (like those sent to HMRC or Companies House), you'll still need an accountant to check and finalise them.
RECOMMENDED READING: What Can A Bookkeeper Not Do?
When Do You Need an Accountant Instead?
A bookkeeper can prepare draft financial statements, but an accountant is needed when the stakes are higher:
Filing official year-end accounts with Companies House or HMRC
Reviewing or signing off on financial statements for banks, investors, or audits
Making sure your reports follow accounting standards like UK GAAP or IFRS
Turning your numbers into strategy - forecasting, budgeting, and business planning
In short: if your financial statements need to be official, reviewed, or investor-ready - that’s an accountant’s job. And that’s exactly where an all-in-one service like JAFA makes things easier.
What We Think
Many small business owners aren’t sure where bookkeeping ends and accounting begins, and honestly, we get why. The line isn’t always obvious.
In our experience, bookkeepers do a great job keeping day-to-day records clean and even preparing financial reports for internal use. However, problems often arise when people assume those same reports are ready for tax filing or external use.
We believe this confusion stems from how bookkeeping and accounting are treated as interchangeable - when they’re not. Understanding the difference can help you avoid compliance issues, bad decisions, or unexpected bills.
RECOMMENDED READING: What are the Similarities and Differences Between Accounting and Bookkeeping?
How JAFA Can Help
At JAFA, we bridge the gap between bookkeeping and accounting, so you’re never left wondering who does what.
Our AI-powered bookkeeping keeps your records clean, accurate, and up to date. That includes tasks like handling all accounts payable and receivable, keeping your cash flow steady, and reconciling bank statements.
From there, our qualified accountants step in to prepare and review your financial statements when it matters most - whether it’s for tax filing, funding applications, or year-end reporting.
You get the convenience of automation and the confidence of expert oversight - all in one place without the confusion.
Contact our expert accountants based in Birmingham, UK, either by booking a FREE discovery call or calling us on +44 121 227 6277.
Comments