Bookkeeping Bites – Bookkeeper or Accountant?
It can be regarded as a dull introduction, but I always start with explaining the difference between a bookkeeper and an accountant. It’s a question I get asked a LOT.
A bookkeeper is concerned with the fundamental transactions of a business – anything that creates a movement in cash or credit. The examples of these are receipts from shops, invoices from Suppliers, invoices to Customers, daily takings from a point of sale and most importantly the bank statements. These transactions are then recorded into a finance “system” for the business owner.
At Now Bookkeeping Ltd we have a wide knowledge of the various “finance systems” available to business owners – Spreadsheet (!), Sage (both accounting packages and payroll), Xero, Quickbooks Online, Moneysoft Payroll Manager, Quickfile, Concur, Agresso, BAAN, Manman. Some are very well known and some not very well known!
We recommend Xero and Quickbooks Online because they are very user-friendly to the most important person in the business and that is you the business owner.
The Accountant is concerned with the outcome of this record keeping. They will produce the financial reports of the company to the business owner and submit any legally required submissions. From here they can work with the client to offer business and tax efficiencies which are not possible if the record keeping is not up to date.
The lines can blur between the functionality of the two roles but if utilised correctly then the service they can provide can be a powerful control and cost saving tool.
Because the lines can blur there are some people that believe a bookkeeper is a cheaper accountant and that is certainly not the case.
A Chartered qualified accountant is registered, is insured and has to fulfil Continued Professional Education and a Certified bookkeeper is registered, insured and has to complete a series of Continued Professional Development. At Now Bookkeeping Ltd we absolutely embrace the importance of this as Teresa is a Chartered Accountant and I am a Certified Bookkeeper.
I hope the roles are now clearer to you and if you would like to discuss any bookkeeping questions or your business requirements please do not hesitate to contact me at Charmian@nowbookkeeping.co.uk