There are a lot of things that can impact the financial health of your business, but none impact it like understanding when to utilize which financial professionals. That’s where understanding the roles of a bookkeeper vs accountant comes in handy. These are two sets of professionals that may have some synergy at face value, but their responsibilities and expertise couldn’t differ more!
Knowing when you need a bookkeeper vs when you need an accountant is one of the many keys to keeping your business organized and thriving. That’s why today, we’re diving into some of the key distinctions between bookkeeping vs accounting and how to figure out which and when will best align with your needs.
Understanding the Basics: Bookkeeping vs Accounting
When you break it down, bookkeeping is more about maintaining a business’s day-to-day financial operations. Think about it like this: your bookkeeper is in charge of recording transactions, reconciling bank accounts, and tracking expenses so that everything is in line with the business records.
Your accountant, on the other hand, will take all of these financial records and interpret them to deliver some keen insights into the company’s fiscal performance. They’ll use the data they analyze to generate reports, do some financial forecasting, and help inform decisions being made.
Don’t be mistaken. Both roles contribute tremendously to the overall financial health of businesses, but the key distinction between the two is their scope of responsibilities.
Bookkeeper vs Accountant: Key Responsibilities
What Bookkeepers Do
A bookkeeper is in charge of handling general aspects of your business’s financial management. Usually, you can count on their tasks including:
- Daily financial transactions recording (e.g., sales and expenses)
- Reconciling bank statements for accuracy
- Managing and maintaining payroll processing in an accurate and timely fashion
- Organizing receipts and invoices for quick reference.
Your company’s bookkeeper makes sure that your financial data is always up-to-date and accurate. If you want a clear picture of where your money is coming from and going to, look to your bookkeeper!
What Accountants Do
On the other hand, accountants will take a more broad view of all of your business’s finances. They’re usually in charge of:
- Prepping and analyzing fiscal statements to inspect the company’s financial health
- Giving strategic, data-informed advice based on financial trends and projections
- Tax planning and verifying compliance with regulations
- Helping businesses make informed decisions concerning investments and growth
A big difference between a bookkeeper vs accountant, in short, is the higher-level analysis and planning that accountants are usually responsible for.
Skills and Qualifications: Bookkeeper vs Accountant
Are you looking for another way to differentiate between the two? Let’s take a look at the qualifications of each:
Skills and Qualifications for Bookkeepers
When it comes to becoming a bookkeeper, you don’t necessarily have to have a formal education, but you’ll definitely need some strong organizational skills, meticulous attention to detail, and a lot of experience with financial software like QuickBooks.
Keep in mind that it can’t help to have a Certified Bookkeeper (CB) certification to show expertise in the industry.
Skills and Qualifications for Accountants
When it comes to accountants, they are usually required to hold a degree in accounting, finance, or other related field. Some even pursue their CPA (Certified Public Accountant) designation, which in and of itself is, requires a lot of rigorous coursework, exam-taking, and practice hours.
Because of this advanced certification, they’re easily distinguishable from bookkeepers and are well-equipped to deliver sound financial advice.
The better you understand the qualifications that are required when it comes to bookkeeper vs accountant, the better informed you’ll be when you make the decision to hire either of the professionals for your company.
When to Choose a Bookkeeper vs Accountant
When to Work with a Bookkeeper
If you’re looking for somebody to manage your daily financial affairs, then a bookkeeper would put you on the right track. They’re the best when it comes to keeping organized sets of records, reconciling accounts, and handling your payroll. They’re truly essential to any business operation and are a surefire way to keep your financial data accurate and up-to-date at all times.
When to Work with an Accountant
The more your business continues to scale, the bigger the need for an accountant your business will be. When it comes to financial forecasting, data-informed strategy development, or prepping detailed reports, you can always count on an accountant.
They’ll be able to help you make informed decisions concerning your company’s growth, investments, and overall fiscal planning.
The need for a bookkeeper vs an accountant will depend pretty heavily on your specific needs and business goals. Who knows? You might even be able to leverage both to cover all of your financial bases.
How Estess CPAs Can Help
The Estess CPA team understands how integral both bookkeepers and accountants are to any business’s operations. That’s why we help small businesses across the New Orleans area streamline all of their bookkeeping and accounting tasks. Our team is equipped to support all of your day-to-day financial needs as well as tax preparation, and analysis, and help make any data-informed decisions to back your business.
Are you ready to take your business to the next level? Partner with Estess CPAs! We’ll work with you closely to understand all of your business goals and needs to support you in your fiscal tasks.
Click here to chat with the team!
Let us handle the numbers.
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