Bookkeeper vs Accountant: What’s the difference?
Introduction:
Do you ever notice how some people refer to themselves as accountants and others doing the same exact job calling themselves bookkeepers? Confused? You are not alone!
Accountants and bookkeepers work within the same departments at companies and accounting firms. Accountant may perform bookkeeper’s tasks (but not vice versa). Bookkeeping functions are frequently referred to as “accounting” within private and public companies. For this reasons, bookkeepers are often calling themselves accountants because they see little difference between these two occupations.
However, the two occupations are different and I am highlighting the separation of duties below.
Bookkeepers are responsible for the following tasks:
- Making journal entries
- Account reconciliations
- Storing supporting documents
- Collections
- Paying accounts
Generally, these tasks can be completed just by having on the job training. Bookkeeper function is to record transaction on a daily basis.
Accountants are responsible for the following tasks:
- Creating financial statements
- Selecting treatment of accounting problems under appropriate GAAP
- Taking the company through audit
- Assist or file corporate tax
- Assembling disclosures and writing MD&A
- Producing internal reports on company’s performance
- Assembling KPI
- Producing budgets
CPA, ACCA or other recognized designation is required in the accounting practice. Accountants take the information that is recorded by the bookkeepers. Accountant make sense of this information by turning those entries into reports and financial statements for external investors and executive management team.
