How to become a small business accountant
Small businesses need accountants too — and not just during tax season. Learn how you can start a career as a small business accountant.
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What does a small business accountant do?
Small businesses often skip hiring an accountant to save money, but that decision may be costly. Small business accountants manage more than just payroll, income, and expenses. They help companies make informed decisions that support financial sustainability and business continuity by:
- Tracking weekly, monthly, and yearly performance using profit and loss statements and other financial data
- Complying with tax and regulatory obligations
- Guiding pricing strategies
- Flagging financial risks
- Identifying growth opportunities based on internal benchmarks and trends
Is small business accounting different from other types of accounting?
Small business accounting often involves broader responsibilities and closer client relationships than roles in larger organizations or corporate firms. While corporate or public accountants often specialize in an area like auditing, taxation, or financial reporting, small business accountants typically manage all financial functions.
You also work directly with owners, which means your insights have a direct impact on operations. It's a more personal and dynamic environment, ideal if you prefer variety and independence.
Accountant vs. bookkeeper
Accountants and bookkeepers at small businesses have distinct roles and responsibilities. The work of an accountant is more comprehensive and tends to involve specialized knowledge about the business. Likewise, accountants generally have a higher level of academic preparation. The table below outlines how the Bureau of Labor Statistics (BLS) defines each role:
Accountant
- Create budgets and prepare financial reports
- Manage tax responsibilities, including filing returns and timely payment
- Provide financial analysis and forecasting
- Examine financial records to ensure compliance with laws and regulations, and investigate irregularities
- Support business strategy by offering guidance on cost reduction and profitability
Bookkeeper
- Record daily transactions using bookkeeping software or spreadsheets
- Handle payments, including paying vendors, issuing invoices, and processing payroll
- Track money in and out, assigning expenses and income to the right categories
- Reconcile accounts, check that records match bank statements, and fix any errors
- Prepare basic reports like income statements and balance sheets
Steps to become a small business accountant
Step 1: Study accounting by enrolling in a program
To become a small business accountant, the most common entry point is earning a bachelor's degree in accounting, finance, or economics. According to the BLS, most accounting jobs require a bachelor's degree at a minimum.
If you're interested in working specifically with small businesses, you can also explore programs that offer specializations or courses in areas like tax accounting, small business finance, or nonprofit accounting.
Explore online bachelor's degree programs in accounting from top universities delivered by edX.
Step 1: Study accounting by enrolling in a program
To become a small business accountant, the most common entry point is earning a bachelor's degree in accounting, finance, or economics. According to the BLS, most accounting jobs require a bachelor's degree at a minimum.
If you're interested in working specifically with small businesses, you can also explore programs that offer specializations or courses in areas like tax accounting, small business finance, or nonprofit accounting.
Explore online bachelor's degree programs in accounting from top universities delivered by edX.
Get started on edX
Considering becoming a small business accountant? Enroll in courses and programs from edX to help you learn accounting fundamentals or specialize in areas that matter to your clients.
Frequently asked questions
Published June 11, 2025