What’s The Difference: Bookkeeper vs. Accountant
If you’re reading this blog, we’d first like to say… congratulations! Because asking these sorts of questions shows that you are thinking about the financial future of your business, which is a wise thought process to have for any business owner.
The second thing we’d like to say is that this question is incredibly common. Bookkeepers and accountants are often mixed up because they work in the same fields and because their duties overlap.
So let’s clear up some of that confusion!
Their Differences
Bookkeepers and accountants actually have very distinctive tasks to complete.
A Bookkeeper’s Tasks
to record what you spend and gain daily
to send invoices and note when you’re paid
to develop your financial statements
to process the payroll of your employees
to give your accountant important information such as your year-end financials and tax documents - and, finally, to prepare books for your accountant
An Accountant’s Tasks
to analyze your finances
to analyze your cost of operations
to offer you advice on your business’s financial health and your financial decisions moving forward - to create financial forecasts
to perform financial audits
to file tax returns
to offer you tax advice
In short: While bookkeepers focus on accurately recording and organizing your books and financial statements, accountants are more focused on interpreting this information in order to assess your business’s financial health and advise you on how to move forward.
How To Move Forward
Now that you’ve learned the differences between a bookkeeper and an accountant, you can decide on whether you’re ready to work with them. Schedule a consultation with the Chief Executive of KG Virtual CFO, Katishia Gallishaw, to discuss how we can help you grow your business.