Bookkeeper vs Accountant. What are the Differences?

This is a question I get asked a lot of the time, so let me explain...

If you are managing a business, you've likely come across the term Bookkeeper and Accountant. While both play a vital role in maintaining your financial health, they serve different purposes. Understanding the differences can help you decide which one you need - or whether it is best to have both.

Firstly, it is important to note that every business is required, by law, to keep accurate financial records, commonly known as "books". This requirement ensures that businesses can track their income and expenses, comply with tax laws, and provide transparency in their financial dealings. Essentially anyone can do this, but most just don't know how to do it accurately. This is where a Bookkeeper comes in.

Role of a Bookkeeper

Bookkeepers focus on the daily details of your business's finances. From tracking sales and expenses to logging payments, they ensure everything is recorded accurately, giving you a clear and up-to-date view of your financial situation. Essentially, a Bookkeeper ensures compliance and makes sure nothing slips through the cracks, keeping your financial records organised and in order.

Role of an Accountant

The main role of an accountant is to work with the data provided by the Bookkeeper to interpret, analyse, and prepare more complex financial reports. They take the organised financial information and use it to create detailed reports, such as balance sheets, income statements, and cash flow statements, while also offering insights and strategic advice on

financial planning, budgeting, and tax compliance.

So which one do I need?

Every business is unique, and for some, having just a bookkeeper is enough. However, other businesses may require both a bookkeeper and an accountant. One of the key differences between Bookkeepers and Accountants is that a Bookkeeper works on your accounts regularly, often on a daily or weekly basis. As a result, we get to know your business accounts inside and out, ensuring everything is meticulously recorded and up to date. This ongoing involvement helps us keep a close eye on your financial health and ensures smooth operations.

Outsourcing to a qualified Bookkeeper can alleviate stress and free up your time.

If you want a chat about how I can help you and your business then get in touch.

info@abbeybookkeeping.co.uk

07352 454764