The Difference Between a Bookkeeper and an Accountant

1. The Difference Between a Bookkeeper and an Accountant Business growth is dependent on many factors of which financial stability is arguably the most important. If your finances are in order, you won’t have any difficulty in running your business’s daily affairs. However, in order for there to be financial stability, there needs to be work going on behind the scenes by experts in the field. This includes both bookkeepers and accountants. A business needs one or both in order to ensure that its finances are being handled properly. Bookkeeping services and accounting are often times used synonymously by people but they aren’t really the same. There are many differences in between a bookkeeper and an accountant. Let’s look at some of them.

2. Responsibilities The responsibilities of a bookkeeper are far different from that of an accountant. A bookkeeper’s job is mainly concerned with the recording of data. They have to make sure that each business transaction is properly recorded and documented in a systematic manner. It is their duty to keep track of accounts receivables and payable and ensure that the bills are paid on time and the books are balanced. An accountant, on the other hand, is responsible for making use of the financial data recorded by the bookkeeper and then analyse it. They create comprehensive and informational reports based on the recorded data that are vital for decision making. Qualifications Bookkeepers don’t have to be formally educated in the field of accounting. They are not required to have a four-year degree but need to have a working knowledge of business finance. Since you only need them to record the transactions, they just need to be good at organization and basic arithmetic. Accountants are far more qualified than bookkeepers. In order to become an accountant, you need to at least have a degree in accounting and must be familiar with the tax laws. Since accountants are needed to analyse financial data, they are required to have strong analytical skills and need to be well-versed in accounting software. Charges A bookkeeper usually chargeshourly rates for his/her services. However, there are full-time bookkeepers available too that can be hired for doing some other

3. financial calculations like payroll and managing your different accounts. Such bookkeepers demand a higher fee. However, accountants are costly since their work is more crucial for making important decisions regarding the growth of the business. You would have to pay good money to hire a good accountant. Shoebox Bookkeeping is a well-reputed bookkeeping service provider based in Australia. You should contact us immediately if you are looking for a bookkeeping service for your business.