What is the Difference between a Bookkeeper and an Accountant?

Sometimes the terms “bookkeeper” and “accountant” are used interchangeably by people who aren’t familiar with the industry. But, the truth is that there is a distinct difference between a bookkeeper and an accountant, and you need to understand the differences before you choose the right service provider for your small business.

How are Bookkeepers and Accountants the Same?

The services provided by both bookkeepers and accountants are important business tasks that need to be addressed by every business owner. But, their tasks and daily, weekly, monthly, and yearly work changes depending on the type of financial professional that you hire.

Both accountants and bookkeepers are trained to help you with the financial side of running a business. By managing the transactions and using the reports, they can help you make wise decisions about the financial future of your company.

Differences between Accountants and Bookkeepers

Even though these services providers both offer financial services, the types of services are a bit difference. A small business bookkeeper focuses on the regular financial transactions that are coming through, to help you manage the records for all accounts payable and accounts receivable. Full service bookkeeping might also include other services, such as monthly reports, paycheck printing, and more.

On the other hand, accounting is often focused on assessing the financial data in order to identify trends and make suggestions for future growth. An accountant actually analyzes the data from the financial records, and bookkeepers simply track the information without the analysis.

Do You Need a Bookkeeper or an Accountant?

Even though the untrained eye might assume that small business bookkeeping and accounting are the same service, it is important that you understand the differences between these two professions. In many situations, small business owners often find it beneficial to hire a bookkeeping service as well as an accountant, because the services are very complimentary of each other.

A professional bookkeeping service manages and records the financial transactions, which lays the groundwork for an accountant to step in and correctly analyze the information that is available. These two steps are essential to help you manage control of your business finances. Additionally, a good support team of financial professionals can help you be strategic with your cash flow management and future financial planning.

Are you interested in learning more about how you can benefit from a small business bookkeeper? Contact us at Easier Bookkeeping, and we will gladly answer your questions and help you find the right financial services that you need: (888) 620-0770

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