What’s the difference between a bookkeeper and an accountant?
We often get asked this question or asked to do tasks that an accountant does that we don’t. So, I thought I would take this opportunity to explain the difference.
Bookkeepers and accountants perform different roles in managing a company’s financial affairs.
Bookkeepers are usually responsible for recording daily financial transactions, such as sales, purchases, receipts, and payments, in an organized and accurate manner. They typically use accounting software to maintain the company’s financial records, including the general ledger, accounts payable and receivable, and payroll.
In contrast, accountants use the financial data bookkeepers maintain to prepare financial statements, such as the balance sheet, income statement, and cash flow statement. They analyse the financial data to help business owners make informed decisions, such as which investments to pursue, how to reduce costs, and whether to expand the business. Accountants also perform audits and reviews of financial statements to ensure compliance with accounting standards and laws.
We offer bookkeeping services but work closely with your accountant to provide them with the data they need to do their work. And a lot of the time, this all happens behind the scenes! We know where our skill set lies.
Get in touch today to learn more about how our bookkeeping services can support you.