Bookkeeper vs Accountant What Is The Difference

1. Bookkeeper vs Accountant

2. WHAT IS ACCOUNTING? Accounting is not a simple terminology. It consists of different aspects of a business including auditing, financial reporting, and tax planning along with record keeping and VAT returns. One can consider accounting as a whole transaction process for a business which is essential to maintain and control financial responsibilities. Any business task that is related to money comes under the accounting matter.

3. WHAT IS BOOKKEEPING? On the contrary to accounting, bookkeeping is a branch of accounting that involves mainly in keeping the records of any business transaction. It is a specific part which is related to the financial management system. The record keeping action include keeping the notes of both invoices and receipts. Therefore, it includes the record of both incoming and outgoing records. Bookkeeping is a term that is associated with maintaining the financial status.

4. Bookkeeper vs Accountant: ROLE An accountant is involved in matters like interpreting, summarizing and communicating all the financial transactions. Therefore, it can be said that the accountant has an overall duty to maintain the financial matters of the business. On the contrary, the work of the bookkeeper is something different. He needs to understand and identify the different transactions. HE needs to classify and record all the financial transactions.

5. Bookkeeper vs Accountant: TOOL USED An accountant needs to take a decision regarding the financial matter of the business. Therefore, an account needs the Profit & loss statement, the current and previous balance sheets, and the cash flow statement. Based on these statements the accountant can take decisions regarding the business. On the contrary, the duty of the Bookkeeper is limited to record the transaction. Therefore, a bookkeeper needs journals and ledgers. The bookkeeper needs to look at the incoming and outgoing things and classify it by understanding.

6. FINANCIAL DECISIONS Accountants used to keep all the records of the transactions related to transaction therefore, it becomes easy for them to take the decision. The accountant should be able to manage financial matters, cost-related issues along with certain HR responsibilities. On the contrary, the bookkeeper should only learn the single entry, double Entry, and virtual entry matters. However, in the case of bookkeepers, they are not related to any major decision-making process.

7. REQUIRED SKILLS Accountants are one of the pillars of any successful company. They used to take the decisions related to the wellbeing of the business. Therefore, it is important that they have professional degrees in accounts and must pose analytical skills for interpreting the different data came to him. On the contrary, the bookkeepers are not required to have any specific skills. They should only be able to keep track of the businesses.

8. BOOKKEEPER VS ACCOUNTANT– FINAL THOUGHT Therefore, through the presentation, you have seen the differences between an accountant and a bookkeeper. Based on your business requirement you can hire the specific one.

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