The Difference between a bookkeeper and an accountant

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There is a difference between a bookkeeper and an accountant, but many people aren’t aware of these. Bookkeepers and accountants share many common areas, but there is a difference in their job roles.

Bookkeepers and accountants sometimes do the same work but have different skill sets. A bookkeeper is more of an administrative role within the finance industry, whereas an accountant is more subjective, giving you an in-depth knowledge of your business financial health. A bookkeeper’s role is to record transactions and keep the books financially organised, while accountants provide analysis and are more qualified to advise tax.

A breakdown of the difference are as follows:

A bookkeepers role consists of:

  • Recording financial transactions
  • Providing invoices
  • Preparation of financial statements
  • Maintaining ledgers
  • Completing payroll
  • Preparing VAT returns

An accountants role consists of:

  • Preparing to adjust entries (Accruals which are expenses that have occurred in the financial year but have not been accounted for in the bookkeeping side)
  • Reviewing company financial statements
  • Completing tax returns
  • Filing accounts
  • They are advising business owners of any impact on financial decisions.