At times, it can be difficult to ascertain the difference between accountants and bookkeepers. While they both serve essential purposes to a business, the jobs are quite different. 

 

Bookkeepers keep your financial records on a daily basis.

Accountants specialize in tax reporting and filing.

 

The two jobs are different in a variety of other ways, including:

 

Job responsibilities

Bookkeepers perform the essential function of financial record-keeping. They keep track of the expenditures in the business checkbook, record income in a cash receipts journal, and manage payments to vendors in the disbursements journal. At the end of the month, they post these transactions to the general ledger. They also take care of payroll. Bookkeepers prepare the financial information an accountant needs such as reports, vendor statements, and profit and loss statements. These reports are also important for assessing the financial condition of the business, so it’s important that the business owner understand the reports in order to make important decisions. 

 

Accountants take the information from the general ledger and use it to prepare tax statements. They are familiar with the tax code and different needs for specific businesses. Accountants have also designed the bookkeeping systems businesses use.

 

Price

Bookkeepers’ hourly range averages $20 per hour, often depending on the type and location of the business. They can be employees or contractors. 

 

An accountant typically has numerous clients and charges an hourly rate that averages about $140 per hour more than a bookkeeper. For this reason, it’s important to have records fully prepared for your accountant to view, since you don’t want to have your accountant performing record-keeping tasks. 

Business need

While some small businesses keep their own books, a professional bookkeeper is beneficial in ensuring accuracy. Bookkeepers also allow business owners to focus on the other needs of the company.

 

All businesses should have an accountant. A tax professional saves time and money, and helps to ensure correct filing of tax returns. Accountants also help to avoid penalties, incorrect information, or audits. 

 

The importance of both jobs

Bookkeepers and accountants both provide important functions to companies of all sizes. Understanding the difference between them helps business owners get the most accurate financial information, file the most complete and correct tax returns, and save time and money.