Are you still studying in the field of commerce and want to become a bookkeeper or accountant? So we can understand what’s going on inside you, exactly you are mystifying the bookkeeper and accountant so let’s start a blog to avoid your confusion or misunderstanding between the bookkeeper and accountants.
Bookkeeping and accounting are the integral directors of making financial statements. Every business whether it is of any level has financial transactions and these financial transactions need to be prepared for future analyzing and comparing the performance with the previous financial statements.
Role of Bookkeepers and Accountants
Bookkeeping is the accounting process in which day-to-day proceedings need to be recorded by bookkeepers to deal with financial affairs.
Bookkeeping has two system:
- Single-entry bookkeeping system
- Double-entry bookkeeping system
The role of bookkeepers is to find out that all the transactions have been recorded or not based on the accurate records such as sales and purchase receipt, invoices, bills. They can’t skip recording each transaction for the next day, rather they have to record immediately particular transactions with time, date, amount.
We can say that bookkeepers are concerned with daily financial monetary transactions and economic transactions.
- Need to record day-to-day operations
- Trace all the expenses and invoices
- Supervision of overall payroll process
- Reconciliation of bank statements
- Keep going to stabilize journal ledger books, general business books.
General ledger books
This business book contains transactions related to account receivables and account payables, cash, and credit inventories under the sub-ledgers. In simple words, they record all the sales and purchase transactions whether it is in credit or cash in the general ledger.
Journal books
This business book contains only documentation of cash revenue and cash expenses.
On the other hand, if we talk about the accountants, accountants are the process of analyzing and summarizing the records prepared in financial statements, ledgers, journal ledger books by bookkeepers and take out a valid result about the company’s financial health and discuss with business owners according to the business records by using strategies, thinking about the future.
Accountants accomplish the role of consultants who need to be consulted for every activity related to business and finance in a company so that they can be capable of sticking out a superior-conclusion which is fitter for a company’s improvement.
- Evaluating all financial transaction maintained by the bookkeeper
- Responsibility to fill all income tax
- Using strategies for the betterment of the company
- Take out true decisions to meet its future requirements for the betterment of the company
Functions of Bookkeepers and Accountants
Everyone wants to succeed in business that’s why they hire bookkeepers and accountants to handle their accounting departments. The responsibilities of bookkeepers and accountants are different but both are work on the same platform ie. financial accounting.
Bookkeepers are the only professionals who design and fabricate financial details such as expense and sale receipts in journal books and general ledger books.
- To control inventories ie. recording of how many inventories have been sold.
- Maintain cash outflows and cash inflow of the business.
- Maintain a record of Payment received from customers
- Maintain a record of payment to suppliers, vendors, or creditors
- Day-to-Day proceedings of sales and purchase
- Send invoices to the customers
- Transfer financial entries into the debit and credit side.
On the other hand, Accounting is one of the highest-profile in accounting in which accountants are responsible to take out effective financial decisions by analyzing, summarizing the financial reports prepared by bookkeepers and after evaluating, they have required to show all the profit and loss, income, expenses, revenue in front of business owners.
- Accountants check out the reports of financial entries recorded by bookkeepers for editing if they have made wrong entries.
- Responsible for creating final reports which will be sent to the business owners and analysts.
- Calculate all the expenditure with the sales.
- Check out all the income tax return files for summarization.
- Maintain audit reports
After all, completing the above activities, accountants need to show the efficiency of the company to the business owners by telling them about the company’s profit and loss, expenses, revenue, cash outflow, and inflow. This represents the company’s actual health and exposes the business’s financial and economic condition.
Accountants are like a helping hand who acts as a consultant for a company and provide advice about what steps should be taken because they involve planning, strategies, ideas according to the business budget to deal with future crises.
Qualification criteria of Bookkeepers and accountants
To become a bookkeeper or work as a bookkeeper in a commercial company, we must have a bachelor’s degree + 2 years experience in accounting + certified bookkeeper. To get a professional degree in bookkeeping, we need to complete a course of CB through the American Institute of Professional Bookkeepers, National Association of Certified Bookkeepers, Certified Public bookkeepers, College, and university.
On the other hand, To become an accountant, we must have a bachelor’s degree in accounting, business, and finance. Certified Public Accountant (CPA) is one of the professional courses of accounting which is done by those people who want to become an accountant but keep in mind, we must pass the exam of Uniform Certified Public Accountant (UCPA).
Are Bookkeepers and Accountants the same?
Bookkeepers and Accountants have similar goals but not similar personalities due to qualification, position.
Bookkeepers fulfill the records of financial transactions and bypass each entry in the right place but the accountant needs to verify all the financial reports, showing the reality of the business.
Accountants are the indicator for businesses to specify the fitness of the business by showing financial charts, structure, and pictures.
Bookkeepers are very smart in recording basic and advanced financial transactions but accountants are very smart in analyzing all the financial reports to reach out the decisions.
Bookkeepers utilize accounting software or accounting tools for maintaining daily records, even they also use pen or paper and spreadsheets for transactions related to sales and purchases.
Let us tell you bookkeeping and accounting are not the same but do not have different goals, even though they have common goals, they provide the same service to the company as a professional employee so that company owners can easily meet its business expenses, revenue, income, sales, and tax.
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