Bookkeeper Vs Accountant
Should I use a bookkeeper or an accountant? What are the differences between them? What is right for my business? A simple guide to help you choose what is right for you.
Bookkeeping
Bookkeeping is simply that, the keeping of day to day books for a business. They do not make decisions based on the figures or reports that they produce. It is handy for a bookkeeper to work methodically through a checklist. Typical daily tasks involve issuing invoices to customers, recording receipts from customers, recording invoices from suppliers, paying suppliers, recording inventory, petty cash and payroll. They can help in many aspects of the day to day running of a business. They can play an important role in the business as the business owner knows which suppliers have been paid, how much they have received from customers etc. This is all a small business needs in relation to their accounts.
Accountant
The accountant is much more than simply processing daily transactions. They take the information supplied by the bookkeeper and analyse, interpret and report the financial information. The books must be up to date and accurate in order for them to do this. They also evaluate efficiency in a business and help make decisions based on the financial performance of the business. An Accountant undertakes much more complex work than a bookkeeper and is more appropriate for a larger sized business.
In summary, a bookkeeper can help with the time consuming daily administration and data tasks, so that the business owner can concentrate on the running of the business. If the business is large enough this information is then sent to an accountant for further analysis, which can also help them in important decision making.
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