Accountant vs. Bookkeeper: What Do They Do for a Business?
An accountant works together with the bookkeeper to achieve the same result, so they can’t be competing but rather supporting and working together according to bookkeepers Melbourne.
Bookkeeping versus accounting
A bookkeeper deals with daily business financial transactions such as purchases, receipts, sales, and payments. Documenting these records in most organization is done using a general ledge or a business journal. Small companies can effective use software’s such as QuickBooks, Peachtree to keep track of business entries, debits, and credits.
Using such software’s culminate in a trial balance, thus the final of debit and credit match.
I should also say that sometimes the lines can be blurred and a bookkeeper can be responsible for some tasks that are considered accounting department and then some accountants would also perform some bookkeeping tasks. Let’s take a look at what each of them does so we can understand how the both of them fall into place in business.
Hiring a financial professional
- A bookkeeper gathers all the paperwork like sales statements, receipts, paid bills and anything else that shows income or expenses and records the amounts, dates and sources for each of them into some spreadsheet.
- It can be a regular paper, a columnar pad that’s been used for decades for this purpose, or can be computer software. Either way, the act of recording this data is called bookkeeping.
- Now we know the first part of this team; the second part is the accountant.
- An accountant then takes the data that has been collected and recorded by the bookkeeper and processed into an easier to understand means, like reports, charts, and graphs.
- They also are the ones that take care of the reporting and filing forms for taxes and other similar purposes.
- It is considered a higher step in the financial department to be an accountant and the bookkeeper would usually report to the accountant. Click here !
Education entries for bookkeepers and accountant
When it comes to education for becoming either a bookkeeper or an accountant, there is a difference too. It requires a lot more schooling to become an accountant, as bookkeepers do not. For someone to become a bookkeeper it would require one to three years in college as to become an accountant you would need a degree in accounting, and associate’s or even a master’s degree.
What a bookkeeper makes vs. accountant?
Accountants do make almost twice the amount of money a bookkeeper does, so if an accountant made $80,000 per year, a bookkeeper would make about $40,000. I am not saying that this is how much they earn everywhere; I am just saying that a bookkeeper will make half of what an accountant does pretty much anywhere in the US. So looks like going to college for the extra two years to get a master’s degree in accounting makes it pretty beneficial.
Lately I should also say that sometimes the lines can be blurred and a bookkeeper can be responsible for some tasks that are considered accounting department and then some accountants would also perform some bookkeeping tasks. Contact bookkeepers Melbourne for your business bookkeeping needs. Find out more in this site : bookkeeperco.com.au