Bookkeeper vs Accountant What Is The Difference

1
Bookkeeper vs Accountant
2
WHAT IS ACCOUNTING?
Accounting is not a simple terminology. It
consists of different aspects of a business
including auditing, financial reporting, and tax
planning along with record keeping and VAT
returns. One can consider accounting as a whole
transaction process for a business which is
essential to maintain and control financial
responsibilities. Any business task that is
related to money comes under the accounting
matter.
3
WHAT IS BOOKKEEPING?
On the contrary to accounting, bookkeeping is a
branch of accounting that involves mainly in
keeping the records of any business transaction.
It is a specific part which is related to the
financial management system. The record keeping
action include keeping the notes of both invoices
and receipts. Therefore, it includes the record
of both incoming and outgoing records.
Bookkeeping is a term that is associated with
maintaining the financial status.
4
Bookkeeper vs Accountant ROLE
An accountant is involved in matters like
interpreting, summarizing and communicating all
the financial transactions. Therefore, it can be
said that the accountant has an overall duty to
maintain the financial matters of the
business. On the contrary, the work of the
bookkeeper is something different. He needs to
understand and identify the different
transactions. HE needs to classify and record all
the financial transactions.
5
Bookkeeper vs Accountant TOOL USED
An accountant needs to take a decision regarding
the financial matter of the business. Therefore,
an account needs the Profit loss statement, the
current and previous balance sheets, and the cash
flow statement. Based on these statements the
accountant can take decisions regarding the
business. On the contrary, the duty of the
Bookkeeper is limited to record the transaction.
Therefore, a bookkeeper needs journals and
ledgers. The bookkeeper needs to look at the
incoming and outgoing things and classify it by
understanding.
6
FINANCIAL DECISIONS

• Accountants used to keep all the records of the
  transactions related to transaction therefore, it
  becomes easy for them to take the decision. The
  accountant should be able to manage financial
  matters, cost-related issues along with certain
  HR responsibilities.
• On the contrary, the bookkeeper should only learn
  the single entry, double Entry, and virtual entry
  matters. However, in the case of bookkeepers,
  they are not related to any major decision-making
  process.

7
REQUIRED SKILLS
Accountants are one of the pillars of any
successful company. They used to take the
decisions related to the wellbeing of the
business. Therefore, it is important that they
have professional degrees in accounts and must
pose analytical skills for interpreting the
different data came to him. On the contrary, the
bookkeepers are not required to have any specific
skills. They should only be able to keep track of
the businesses.
8
BOOKKEEPER VS ACCOUNTANT FINAL THOUGHT
Therefore, through the presentation, you have
seen the differences between an accountant and a
bookkeeper. Based on your business requirement
you can hire the specific one.
9
FOR ANY FINANCIAL TASKS AND PROCESSES, FEEL FREE
TO CONTACT US
Visit https//jarrarcpa.com/