Accountant or Bookkeeper - What's the Difference?
Simply put, bookkeepers are responsible for the recording of financial transactions whereas accountants are responsible for classifying, analyzing, interpreting, reporting, and summarizing this financial.
It can be difficult for accountants to find work because many people assume that anyone with these qualifications should also know how to read a balance sheet or understand financial statements. However, this couldn't be further from the truth! Accountants need more than just basic math skills – they need knowledge of higher level mathematics and statistics as well as excellent communication skills since most often interaction with company financial balance sheet.
Differences between a Bookkeeper and an Accountant
A bookkeeper and an accountant are both professionals that help businesses with financial records. However, the main difference between these two professions is their level of expertise:
A bookkeeper records company transactions for day-to-day operations while an accountant performs more in-depth analysis of the organization's finances.
A Closer Look at the Role of Accountants
As a bookkeeper, you may be following the same steps as an accountant, but there are some key differences. Bookkeepers who work for themselves or small businesses typically have more responsibility over payroll and taxes than accountants.
For example, if a company is under 10 employees they will likely need to hire a bookkeeper to handle their payroll and taxes rather than an accountant who usually works with larger companies.
The Role of Bookkeepers
Bookkeepers are often responsible for maintaining a company's financial records. They will monitor transactions and record them in the appropriate accounting system, such as QuickBooks.
Why It Makes Sense to Work With a Bookkeeper
If you are a bookkeeper, it is likely that your clients are small businesses. It can be difficult to keep up with the ever-changing tax code and regulations. You may also have to deal with payroll for employees, which may require more time than just keeping up on paperwork. If this sounds like you, then hiring a bookkeeper might make sense for you and your business. When you work with an experienced professional, they will take care of all the tedious tasks so that you don't have to worry about them anymore! They'll even help prepare taxes for both the business owner and employees at no additional charge!
Read More: https://www.myaccountsconsultant.com/