What Is the Difference Between A Bookkeeper and An Accountant?

by Clare Louise | December 21, 2018 6:38 pm

Although the terms accountant and bookkeeper are used interchangeably, they are two distinct occupations. The main difference between an accountant and a bookkeeper is that the bookkeeper generates data, while the accountant turns that data into information. Often a business will have a bookkeeping Miami Lakes[1] at their offices and the bookkeeper works with accountant at Hialeah Income Tax firm.

Career paths

Bookkeeping is just a small portion of the whole accounting method, making accountants a level up from a bookkeeper. Accountants and bookkeepers normally work together and many individuals who start out as a bookkeeper go on to work at becoming an accountant. You might explore the variances between becoming a bookkeeper vs accountant to decide on the career path to match your goals and interests.

Education level

In order to become a bookkeeper, a person needs at least a high school diploma. Often employers prefer hiring a bookkeeper with post secondary education, such as an associate degree in accounting or a bookkeeping certification.

Most accounting positions require individuals to have at least a bachelor’s degree in accounting, although some employers would ratherhire an individual who has a master’s degree in this field. A CPA candidate needs to complete 150 hours of college courses, which is 30 hours over what is needed for a 4-year bachelor’s degree.

What bookkeepers do

Bookkeeping is a position that is designed to generate data about an organization’s activities. Bookkeepers usually work for companies to keep the financial books in order, typically using software for bookkeeping such as QuickBooks. Their duties are recording day-to-day financial transactions such as accounts receivable, accounts payable, inventory as well as payroll. A bookkeeper may provide reports on a monthly, quarterly or annual basis. The bookkeeper may also update statements and check financial records for accuracy.

What accountants Do

Accountants are accountable for probing financial records, formulating financial reports, doing audits of the books for companies that are public and evaluating financial operations. Accountants also need to explain their findings and suggest various ways to reduce expenses grow revenues as well as boost profits.

Many companies have a bookkeeper in the home office who works with the accountant from another firm on monthly reports or when any other financial documents need to be prepared.

Endnotes:
  1. bookkeeping Miami Lakes: http://hialeahincometax.com/miami-lakes-accountant/

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