The Key Differences Between a Bookkeeper and an Accountant
Do you need an accountant, a bookkeeper or both? Here’s quick summary of the differences between a bookkeeper and an accountant, focusing on their specific roles and responsibilities within a business.
It is a common misconception that accountants and bookkeepers do much of the same tasks. When outsourcing the accounting and bookkeeping needs for your business it is important to note the differences between an accountant and bookkeeper. Although there may be overlap in some areas, both of these positions plays an essential role with distinct responsibilities contributing to the overall success and growth of your small business.
What Does A Bookkeeper Do?
A bookkeeper is responsible for helping your business keep organized, detailed, and accurate records of its finances while also ensuring your company is keeping up to date on all government filings and requirements. A bookkeeper works closely with matters pertaining to your business’ financing and is responsible for day to day duties such as:
- Manage payroll duties
- Track and pay bills on time
- Reconcile Accounts
- Track and Categorize Expenses
- Invoice and follow up
- Track Cash Flow
- Track and Pay Sales Taxes
- Provide reports and flag errors
What Does an Accountant Do?
Some business owners think of accountants only when year end comes around. The reality is your accountant’s input shouldn’t begin and end with your tax return; they should be a year-round business partner. Accountants play a critical role in managing a business’s financial future by looking at the overall picture for your business and honing in on strategies to save your company money. An accountant is responsible for a number of duties including:
- Advisement and preparation of business taxes
- Track sales and profits
- Manage invoices
- Keep your business in compliance with tax laws and changes
- Advise you on the best business structure for your company
- Manage Payroll
- Create reports and analysis of your business’ finances and where improvements can be made
As a small business owner, it is important to have a team of knowledgeable and experienced bookkeepers and accountants to keep your business running optimally and successfully. A skilled and meticulous bookkeeper will manage your business’ records in an organized manner to work hand in hand with a professional and expert accountant that can apply that information to help your business grow and thrive.
At E&E we’re equipped to both crunch and analyse the numbers to provide an accurate picture of your business to help you grow. Contact us to schedule a consultation to discuss options to assist with the upkeep and management of your business’ finances, including bookkeeping and accounting services.
- Corporate Gifts - November 26, 2022
- Boost your business digital strategy with the Canada Digital Adoption Program - October 28, 2022
- Best Practices When Forming a Business Partnership in Ontario - April 26, 2022