Difference between Bookkeeper and Accountantby Manoj Singh rathore Digital Marketing Head and Founder
While this might vary by country, size of organization and licensing requirements, there are some clear distinctions.
Choosing a financial professional to the business is a bit more complicated. You need to ask yourself one question which may require a good deal of deliberation:
What level of service do you really want?
The expression bookkeeper means precisely what it seems like. These are individuals who know and can execute the basic functions involved in maintaining financial "books." Small businesses can hire them to simply handle income and expenditures, and possibly payroll.
Depending on the degree of sophistication the provider requires, they might maintain a General Ledger and document entries as debits and credits. In larger businesses, a bookkeeper might just be responsible for one part of the accounting procedure, like Accounts Receivable. By definition, a bookkeeper doesn't require any special training or licensing, though companies frequently specify the qualifications they're looking for, like a business diploma or at least presence in some accounting courses.
Additionally, not to confuse the function of a bookkeeper with an administrative assistant this function in the world of Small Business id often mixed and united with the employment of an office individual doing jobs like answering the phone, picking up the mail, organizing paperwork, etc... Unfortunately the function of a bookkeeper that is 100% concentrated on the function of keeping the novels is often diluted with additional office activities. Since the bookkeeper has more time to dedicate to the novels and higher responsibilities like internal controls, they begin filling the part of an internal accountant.
Accountants are often required to have more formal education than bookkeepers, like a bachelors' degree or maybe a masters' in accounting. In bigger companies, they can supervise a lower level accounting staff or bookkeepers. Businesses require a whole lot more of these than simply managing the flow of money in and outside.
The amount of responsibility required of accountants varies depending on the size and specific needs of their business functioned. But generally, they are expected to have the ability to help management understand their financial standing in order that they could make better business decisions. They do this by, for instance:
Establishing the Corporation's accounting systems and processes
Ensuring that work is done efficiently and correctly, and that financial information is secure
Suggesting methods to minimize costs.
Probably the most overlooked of all, is that the function that the (internal) accountant needs to introduce official financial reports to management which will assist in more timely and precise business decisions which accommodate to the financial reality of the business.
An Accountant might be fully used at the business or employment in a part-time basis once a month to simply shut the books and prepare internal financial reports, depending on the size of the business and reporting requirements.
Being the tax preparer is not a title, or credential generally... is much more often than not only a function. Anyone in a business can prepare the tax returns so long as they've been authorized to do so by direction (wether is the business owner or a bookkeeper).
For queries related to QuickBooks visit quickbooks support.
Created on Oct 26th 2017 02:09. Viewed 393 times.
No comment, be the first to comment.