What is the difference between and accountant and a bookkeeper?
Often people use the terms ‘bookkeeper’ and ‘accountant’ interchangeably, but in fact, they do very different things.
A bookkeeper is primarily responsible for recording a business’s financial information. They identify and summarize the financial events within the business. They can assist with Annual 1099 and W-9 processing, recording payroll and tax payments, managing accounts payable and accounts receivable, and developing a monthly financial statement. Bookkeepers can also assess a business’s current record keeping processes to make sure that a business is maintaining a reliable financial record. They are also qualified to do the initial set-up of the financial recording systems for new companies or facilitate a clean-up for existing companies.
An accountant on the other hand is responsible for interpreting a business’s financial information and making financial suggestions on behalf of the business. The accountant uses the information that the bookkeeper provides to develop a report or financial statement for the company.
Both an accountant and a bookkeeper are beneficial to a company’s success, and it is important to know exactly how each of the two professionals can benefit you.