What does a Bookkeeper Do?
The simple Bookkeeping include taking all the data of the business give them in software.
For example, a bookkeeper would ordinarily raise the market invoices for the company. A bookkeeper would then chase the debts make sure the payments are made of suppliers.
Often complete the payroll and by recording all those transactions they’d put together the fundamental core of a set of accounts. There’ll be a general ledger there’d be a list of all the debtors and amounts outstanding a list of all the suppliers and amounts outstanding these are the figures.
What does an Accountant Do?
An account would take up those values put them into account set.. Actually, prepare some adjusting entries that aren’t involved in the bookkeeping these might be accounting transactions or things.
Where there wasn’t actually cash movement that need recording in the set of accounts an account will take the figures. Put them into actual financial statements a detailed balance sheet profit or loss and a cash flow and then the accountant will analyze them.
They’ll talk to the business owner about what those numbers mean and how could they be made better an account will all prepare the statutory financial statements and the tax returns. Again, we’ll look at those to say how could we make things better an accountant will work with a business owner to fully understand the impact of all of their numbers.
Is there any Crossover?
There can be a lotta crossover between the work of a bookkeeper and an accountant a lot of accountants do bookkeeping and a lot of bookkeepers will prepare. Some of the accounts of returns both are incredibly important to any business what we find is that a number of our clients can do the basic bookkeeping themselves particularly some of the software.
That’s out there now like the cloud-based software we use a software called zero which is really for bookkeeping it takes a lot of the technical sides away and makes it as simple as possible for business owner to do themselves.
You can take photos of purchase invoices to put them into the accounts if you raise the sales invoice in Xero you can just click go and send an email to your debtors to chase those figures it’s absolutely great well, we often come in as accountants is to pick those figures up and turn them into detail reports and of course ask.
What if or how can we make them better so that’s the difference between accountants and bookkeepers of course the other thing to note about bookkeepers is that is the only words.
|Bachelor’s degree||Not a regulated requirement, but there are certification options.|
|2 years’ work experience|
|Earn CPA license (exam)|
|Tax experts||Daily Tasks|
|Manage how Bookkeeping is set up.||Categorize expense|
|Monitor tax payment amounts.||Profit & Loss statements|
|Reconcile Bank accounts|
|Partner with accountant for tax prep|