What’s the Difference Between an Accountant and a Bookkeeper?
Did you know that there are almost 670,000 actively licensed certified public accountants (CPAs) in the US? There are also plenty of bookkeepers in our country!
Did you think that accountants and bookkeepers are the same things? Well, we’re here to tell you they’re not!
Curious and want to learn more? Then keep reading. In this article, we’ll discuss the difference between an accountant and a bookkeeper so you know which one’s which.
What Does an Accountant Do?
An accountant is someone who helps individuals and businesses review and analyze their financial statements. From there, they’re able to tell their clients about their financial health and project how it’ll go for them in the future. These professionals can also perform audits, file tax returns, and provide tax advice.
To become an accountant, these people have to get a bachelor’s degree in accounting. Otherwise, they must have a finance degree.
Once they’ve gotten their title, accountants can also get additional certifications and titles, such as CPA.
What Does a Bookkeeper Do?
A bookkeeper has similar duties to an accountant, but on a more granular level. In general, bookkeepers will not only record your daily payments and expenses, but they’ll also categorize them for you.
Bookkeepers will also help you send invoices and record the payments once received. In addition, these professionals can process payroll, conduct bank reconciliations, and generate monthly financial statements.
Most importantly, bookkeepers can prepare your books and provide year-end financial documents to accountants.
The Difference Between an Accountant and a Bookkeeper
When it comes to accountant vs bookkeeper, there are small nuances. But in general, accountants usually take on the additional role of a bookkeeper, but not the other way around. For example, they can get an online certification for QuickBooks to add to their list of skills.
So bookkeepers can’t call themselves accountants unless they’ve been through the proper schooling and licensing.
While accountants need a bachelor’s degree in a relevant field, bookkeepers don’t need any sort of formal education. They just need to be detail-oriented.
Bookkeepers are usually employed under an accountant, who oversees their work. They look at and handle direct records and datas for all things financial, but that’s all they do. Accountants take that data and use their knowledge and experience to interpret that data for you.
As a client (especially a small business owner), if you had to choose between the 2, you’d generally hire an accountant instead of a bookkeeper.
Know the Difference Between the Two Professions
By now, you should have a good understanding of the difference between an accountant and a bookkeeper. Basically, bookkeepers are under accountants, considering they don’t need any formal education to become one. Plus, they’re usually supervised by an accountant.
So if you’re interested in a financial career in this area, it might be worth it to start out as a bookkeeper since it takes less time and training to do.
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