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Difference between an accountant and a bookkeeper. Do you need both?

4/1/2019

 
Most people think that Accounting and Bookkeeping are one in the same but there are major distinctions. Bookkeepers oversee the recording of financial transactions while Accountants are responsible for interpreting, classifying, analyzing, reporting and summarizing financial data. Read on as we break-down the differences between these two roles and how they can work together for your business.
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Bookkeepers tend to the first important step of the accounting process = Recording financial transactions in chronological order on a daily basis. Bookkeepers record your business’s daily transactions and generate data, in the same way, every time in a cyclical and transactional method.

Because accounting software automates many of the processes, some bookkeepers in small organizations also classify and summarize financial data in financial reports. These bookkeepers are often referred to as Full-Charge Bookkeepers. 

Accountants analyze financial transactions in financial statements and business reports following accounting principles, standards and requirements. Accountants verify and analyze and interpret financial data in a subjective manner in order to a make sense out of your data and report the financial condition and performance of your business to company leaders to help them make informed business decisions.  

Let's break it down even further. 


Bookkeepers usually:
record purchases, receipts, and payments
invoice customers
balance the general ledger
process payroll

Accountants usually:
generate financial statements and reports
analyze the cost of operations
file income tax returns
advise business owners


​Whether you are just starting off or have been in business for some time, it's best to have both a bookkeeper and an accountant to help you manage and navigate unexpected issues that may arise. Learn more about our Bookkeeping Services on our services page. It's one less thing that you as a business owner have to worry about.
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26 Comments
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Stefan Bradley link
7/24/2019 09:14:37 am

I didn't realize that bookkeepers were responsible for recording the daily financial transactions of your company. My uncle is thinking about opening a store, but he isn't confident that he will be able to keep track of his business' financial records. I think it would be a good idea for him to hire a bookkeeper that can effectively record his finances.

Reply
Randy Chorvack link
9/6/2019 08:54:43 am

Thank you for explaining the difference between accounting and bookkeeping. It's good to know that bookkeepers usually record things like what you buy and what your payroll is because that's what I have the hardest time with. I'm a very disorganized person and I can't keep track of that kind of stuff to save a life. Having a bookkeeper will be really helpful.

Reply
Ron Booker link
10/17/2019 11:37:53 am

I like that you said that bookkeepers help record your daily transactions in chronological order and generate data. I have a friend that is thinking about opening up his own business. I'm going to let him know about considering hiring a bookkeeper for his business to help his business grow.

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Capri Bookkeeping Solutions link
10/21/2019 04:47:48 am

Hi Ron,

Thanks for message! We'd love to help. Please feel free to have your friend reach out to us to set up a consultation. You can reach us at info@capribookkeeping.com or call us (856) 229-0941.

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Braden Bills link
10/30/2019 06:36:22 am

A friend of mine is trying to start a small business. It makes sense that he would want to get a good bookkeeper! That seems like a good way to ensure that he keeps track of all of his expenses.

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Olivia, Capri Bookkeeping Solutions link
10/30/2019 07:47:05 am

Hi Braden,
Thanks for your message! We'd love to help your friend. Please feel free to have him/her reach out to us to set up a consultation. You can reach us at info@capribookkeeping.com or call us (856) 229-0941.

Reply
Kate Welling link
1/6/2020 09:45:15 am

You said that bookkeepers record payments and invoice customers. If I had a business, I'd imagine that this would be beneficial. I'll let my boss know this so he might be able to hire a bookkeeper.

Reply
Capri Bookkeeping Solutions
1/6/2020 11:28:36 am

Thanks for passing along our information to your boss. Please let us know if you have any questions or if you'd like to set up a meeting. You can reach us at (856) 229-0941.

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Shaylee Packer link
1/17/2020 06:34:42 am

I didn't realize that it is best to have both an accountant and a bookeeper. If the business is small and just starting out, is it acceptable to just have an accountant? At this stage, I'm not sure that I would have enough work to keep both of them busy.

Reply
Capri Bookkeeping Solutions
1/20/2020 05:57:45 am

Hi Shaylee,

Thanks for your comment! No job is too small for a Bookkeeper, especially when it comes around to tax season. Organizing your books is an important function for any business but obviously a decision only a business owner can make. We'd be happy to have a consultation. Feel free to give us a call if you'd like to learn more about our services (856) 229-0941.

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Tori Raddison link
1/24/2020 12:10:12 pm

It's good to know that bookkeepers are the first important step because I didn't know where to start. I'm really bad at financial stuff so I was hoping I could hire some help. Maybe I can learn a thing or two from them.

Reply
Capri Bookkeeping Solutions link
1/25/2020 07:15:35 am

Thanks for your feedback and glad to know you found our post informative! If we can help in any way feel free to reach out to us at info@capribookkeeping.com

Reply
Kartik Soni link
2/16/2020 11:20:46 pm

this contant is very honestly thanks for sharing

Reply
Capri Bookkeeping Solutions link
3/10/2020 09:14:18 am

Thanks, Kartik!

Reply
JH Consulting Firm LLC link
3/9/2020 10:58:34 pm

All the information that you shared with us is very helpful for us. Thank you for sharing this with us.

Reply
Capri Bookkeeping Solutions link
3/10/2020 09:14:53 am

Thank you! Glad you found it helpful.

Reply
Katie Withers link
3/11/2020 10:56:10 am

It's nice to know that bookkeepers can process payroll because I'm really bad at that. Payroll is critical, so you can't really afford to mess it up. I'll be sure to hire a bookkeeper so that payroll goes smoothly from now on.

Reply
Brain4u link
4/7/2020 07:08:47 am

Thanks for the blog difference between an accountant and a bookkeeper do you need both for more details visit: www.brain4u.in

Reply
PAT Finance link
4/11/2020 08:22:14 am

It is important to know how much cash you have on hand, which allows you to take on new projects. You also want to know where you can cut costs (while maintaining quality work) so that you can maximize your profits with each project.
Thanks

Reply
C.A.C Financial Services link
5/19/2020 11:27:55 pm

Its really nice article that tells clear difference between a accountant and bookkeeper. Keep sharing.

Reply
kate hansen link
5/20/2020 01:59:56 pm

I loved how you mentioned that an accountant can analyze the cost of operations. My brother was telling me last night about how he wants to get some professional help with managing the finances at his company, and he was wondering what service he needs to hire. I'll make sure to pass this information along to him so that he can look into hiring an accountant to help him.

Reply
Shaylee Packer link
8/19/2020 07:53:01 am

As you mentioned, a bookkeeper with often balance the general ledger and process payroll. My uncle recently started his own business, and wants to hand the financials over to someone else. I wonder if he has thought about a bookkeeper.

Reply
Bookkeeping Melton link
9/19/2020 05:37:53 am

Because accounting software automates many of the processes, some bookkeepers in small organizations also classify and summarize financial data in financial reports. These bookkeepers are often referred to as Full-Charge Bookkeepers.
Thanks

Reply
Lawn Mowing Bookkeeper link
9/25/2020 11:06:24 pm

This article gives detail about difference between an accountant and a bookkeeper do you need both. This article gives suggestions on accountant.. I enjoyed reading while going through this article and this is the best link for gaining all the information about it.

Reply
Shaylee Packer link
11/30/2020 08:35:30 am

It was mentioned that accountants can help analyze the cost of operations, and help decide where are the best places to invest additional money. My brothers' business is beginning to grow into something more than he can manage on his own. I wonder if he has thought about hiring an accountant to help with some of the daily reports and spending.

Reply
Tez link
1/27/2021 02:46:59 pm

I didn't know that accountants mainly correct financial statements. I need someone to figure out sales tax for my business. I'll have to get someone that works close to my house.

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