I’ll keep this short because I know it’s not the most interesting of topics- but it’s important. It will ensure that you hire the right person.
Keep in mind that there can be quite a grey area of responsibilities so each accountant and bookkeeper may be slightly different, but in general:
Your Bookkeeper Will Likely:
- Categorize your bank transactions.
- Run payroll.
- Produce Invoices.
- Create manual journals.
A bookkeepers job is heavily swayed towards data entry, and their primary role is to ensure that the accounts are ready for the accountants to use.
Your Accountant Will Likely:
- Analyse your financial data.
- Create adjusting journal entries.
- File your taxes.
- Aiding with financial decisions.
An accountants job is heavily swayed towards the high-level strategic thinking side of finance, their primary role is to ensure your taxes are filed accurately and to help you understand your finances.
Generally, accountants are more qualified when it comes to formal education, either via a degree in accountant or a formal accreditation like the ACCA (sometimes both!).
Some business owners decide to take on the role of both the bookkeeper and the accountant themselves, others out-source part or all of the job to others. Whichever you choose, make sure all aspects are being covered by someone so that you can help with your business growth.
Need help with your bookkeeping or accounting? We can do both. Contact us to see how we can help you.