When it comes to bookkeeping and accounting, it’s important to know the difference between the two! Both are extremely important functions for every business organisation to keep track of finances and are often thought to be synonymous, however, this isn’t the case. Although at first glance there may be some crossover, it’s important to note there are major differences between bookkeeping and accounting.
What is a Bookkeeper?
A bookkeeper will keep an accurate track of the money coming into and out of a business, carrying out tasks like managing the day-to-day cash flow, preparing for year-end tax returns and help keep the finances running efficiently. It is in essence more focused on the recording and organising of financial data.
This role doesn’t necessarily require any formal training, however, the information that is gathered and managed may affect how an accountant will interpret this financial information of the company.
Typical Booking duties include:
- Managing the accounting software for the development of a single or double entry system of accounting
- Develop credit and debit accounts as well as assigning expense categories
- Handle banking activities such as new deposits
- Implement and monitor bookkeeping procedures and policies
- Verify recorded expenses within the company’s policies
- Maintain, back up and archive company records
- Assist the accountant with financial statements
- Assist with audits
- Flag any discrepancies
What is an Accountant?
An accountant however, performs a wider range of tasks and focuses on the bigger financial picture. This means that they are analysing the information provided by bookkeepers. By doing this, they are able to carry out audits, generate financial statements and forecast future business needs. An accountant may have a higher skill set than a bookkeeper.
Typical duties of an accountant include:
- Financial Analysis and consultation of that data
- Generating standard financial business reports and statements required by the HMRC
- Ensure that the company are following regulatory compliance and following industry standards
- In some cases, they also do their own bookkeeping
Now that you are aware of the differences between an accountant and a bookkeeper, you may be finding yourself in the position of needing the services of one or the other. We here at Adams Watkins have both the skillset and the knowledge to help. If you’re wondering if you need an accountant, get in contact with us now. Our knowledgeable staff can do routine bookkeeping work for you to help free up your time so that you can concentrate on growing your business. Our bookkeeping services are bespoke and tailored to your requirements, with complete awareness that no two bookkeeping processes are the same.
Our bookkeeping specialists have a variety of software packages at their disposal, available for either cloud-based bookkeeping or stand-alone software. As a Quickbooks Certified Pro Advisor, we can offer Quickbooks software at a permanently discounted price.
Get in contact with our team at Adams Watkins now and find out how we can help you to grow your business.