Many businesses are not aware of what makes a bookkeeper different than an accountant or CPA.
They do similar things, right?
Can’t an accountant do the same thing as a bookkeeper and vice versa?
To answer in short, yes and no.
Well, that sounds like quite a conundrum. But thankfully we can help clear the air. A bookkeeper is responsible for day-to-day on-going maintenance of their client’s general ledger. This includes compiling data, reviewing the ledger for accuracy, reconciling accounts, preparing financial statements, and analyzing the data. They can perform payroll duties and end of fiscal period closing.
Yes, and accountants can do all of the same functions as a bookkeeper, but they usually push that off to a bookkeeper so they can focus on the bigger picture. Such as advising a new business in which legal entity will be the best financially, analyzing data to advise clients on where to save and spend money to help their tax liabilities, and finally filing the business tax returns. Many accountants will even provide an audit of the ledger.
Bookkeepers and Accountants work hand in hand. They help ease the burden of the other by performing separate duties, all for the purpose of helping their clients with their bottom line.