The Difference between a Bookkeeper and an Accountant
In general terms, a bookkeeper records the day to day financial transactions of a business and may carry out other tasks such as credit control.
An accountant will use the data provided by a bookkeeper and decide how to best use the data in the most beneficial way for the business and its owners, directors and shareholders.
A good bookkeeper will liaise with your accountant to find out how the accountant prefers the financial data to be recorded and define which other financial tasks are required, such as submission of VAT returns. This will save the accountant time when preparing monthly management reports and yearly reports for submission, which should reflect on the fees you’re charged.
Some accountancy practices also offer bookkeeping services.
- A bookkeeper records day to day financial transactions.
- An accountant uses the data to find the most beneficial way to submit the data to the HMRC, Companies House and for personal tax.
- Some accountants offer both services.
Oct 25, 2013