The roles of accountants and bookkeepers regularly over overlap and can seem quite similar but there are important differences when deciding what professional is right for your business.
Bookkeepers organise and record all businesses financial transactions i.e income & expenses, including the tasks of invoicing and payroll. These transactions are recorded through general ledgers, with bookkeepers needing a keen eye for detail. Maintaining these ledgers is the main role of a bookkeeper and records what a business owes or is owed. Their role would also include bank reconciliations. Depending on the size of the business, the tasks can differ to what is required.
Accountants have a higher-level role with analysing and interpreting this financial data which is then summarised to report to the business owners and shareholders. This would include financial budgets and tax returns. An accountant would be more qualified and knowledgeable of tax law and procedures and ensure the business meets their tax and compliance obligations. The key role of an accountant is to provide a bigger picture of the business and its progression. This results in a better understanding of the profitability and cash flow of a business.
Both professions share common goals in supporting businesses in their financial objectives.
If you are a business owner, why not get in touch and see how we can help you?
ITAS Accounting offers bookkeeping and accounting services to small and medium sized businesses.