What is the difference between a Bookkeeper and an Accountant?
A bookkeeper records and tracks your finances. They record the daily transactions and generate data. Bookkeeping is the foundation of your business.
An accountant processes the financial information and analyzes the data. They verify the recorded data and turn that data into Financials Statements, giving you the complete view of your business.
A bookkeeper plays a vital role in maintaining your businesses books. They perform a transactional and administrative role, recording and managing the day-to-day financial transactions of the business.
This includes keeping thorough financial records of:
An accountant has several areas responsibility—all of which are related to the company’s finances.
Common roles of an accountant include:
• Managing financial data
• Helping you select a business structure
• Regulatory compliance
• Increasing revenue
• Overseeing the general ledger Financials
o Balance sheet
o Cash flow statement
o Income statement
o Shareholders equity statement
• Financial forecasting
o Setting long-term financial goals
o Identifying investment opportunities and targets
o Performing break-even analysis
o Projecting P&L and balance sheets
Every business has different needs and every owner has different knowledge. Deciding what is needed is something only the owner can decide.
I hope this information was useful!
LMC Accounting Services, Inc.