Let me summarize it first in case you just want to know quickly the difference between a Bookkeeper and an Accountant. Bookkeepers are mainly responsible for recording of the financial transactions while accountants are responsible for analyzing, classifying, summarizing, reporting and interpreting these financial data.
Company transactions like bills being paid, payroll, daily sales and expense records are mainly what the bookkeeper classifies and organizes. There is a hand-and-hand approach between the bookkeeper and accountant as there is no particular point where the bookkeeper ends and the accountant begins. The bookkeeper can present the records to the accountants for correlation and indemnifying the books.
Accountants can then review the bookkeeper financial records and statements for analysis and interpretation. Accountants must be able to interpret and analyze the bookkeeping data to reflect the company’s overall financial health. Therefore, the bookkeeper must maintain an accurate record as much as possible, but they are not involved in analyzing these data although some bookkeepers can also keep a tab of your company’s sales and expenses.
Bookkeeper Job Description
At any start of an accounting process, the Bookkeeper is usually the one that is involved. Laying the foundation of accurate recording of transactions and making sure these records are maintained in an organized manner. Although some accountants do the same, bookkeepers are not mainly involved in analyzing and interpreting the data gathered.
Full-charge bookkeepers may demand higher pay than regular bookkeepers but not more than accredited accountants as some bookkeepers can do the greater tasks as modern accounting software has automated most of the processes where bookkeepers can classify and summarize the financial report data. Bookkeepers might have more day to day ideas of the business as they record all financial transactions almost daily.
Accountant Job Description
There are requirements, accounting standards and principles the accountant must follow. They are more involved in analysis and interpretation to reveal the financial condition of a business. These may include:
- Business and Statement Summary
- Analysis and Interpretation of financial data
- Review information classification
- Economic Performance Summary
- Financial Reports of Company Health
You might also have heard of the special status of some other accountants that specialize in other things, like Tax Accountants and Certified Public Accountants, CPA.
These are just simple ways to give you an idea of the main difference between an accountant and a bookkeeper. Good Accountants usually have and know a good Bookkeeper. And good bookkeepers can always recommend good accountants.