What is the difference between a bookkeeper and an accountant?

The roles: bookkeeper vs accountant

Bookkeepers and accountants are often confused. However, both need different skill sets. In general, bookkeepers record transactions and keep businesses financially organized. On the other hand, accountants give consultation, analysis, and are more qualified to advise on tax matters.

Bookkeeper credentials

Typically, bookkeepers don’t require formal education. To be successful in the work, bookkeepers need to be accurate and have knowledge about key financial topics. Usually, the bookkeeper’s job is checked by the accountant or the small business owner whose books are being handled. So bookkeepers can’t call themselves “accountants.”

 

Accountant credentials

To qualify for the title of an accountant, an individual should have a bachelor’s degree in accounting. Those who don’t have a specific degree in accounting, finance are also considered an adequate substitute.

 

Accountants on the other hand are eligible to acquire additional professional certifications. Accountants with sufficient experience and education can obtain the title of Certified Public Accountant (CPA). It is one of the most common types of accounting designations. To become a CPA, an accountant should pass the Uniform Certified Public Accountant exam and possess experience as a professional accountant.

 

Bookkeepers in London are helpful for small businesses. They help to keep track of all the transactions and also ensure the cash flow is maintained. On the other hand, accountants make sure all the financial compliances are being taken care of.

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