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.