Curious about the difference between an accountant vs bookkeeper? I’ll walk you through the key differences in their roles and responsibilities as well as their training.
If you’re not familiar with accounting, you might think that a bookkeeper and an accountant do the same thing. Unfortunately, this can be incredibly confusing because some people use the terms interchangeably. Although accounting work can overlap with bookkeeping work, there are some essential distinctions in the roles.
In short, a bookkeeper focuses on recording transactions in your business. In comparison, an accountant focuses on the overall financial condition of your business based on bookkeeping information. Therefore, an accountant can perform bookkeeping functions, but a bookkeeper should not perform accounting functions. If you’re interested in learning about the difference in more detail, keep reading about the different roles and training for bookkeepers and accountants.
The Merriam-Webster definition of a bookkeeper is “a person whose job is to keep the financial records for a business.” Typical job duties for a bookkeeper are:
You may have also heard of a full-charge bookkeeper. A full-charge bookkeeper may also be responsible for processing and paying vendor bills (accounts payable), billing customers and receiving payments (accounts receivable), preparing basic financial statements for management use, and processing payroll. A full-charge bookkeeper can be similar to an accountant, but an accountant or outside CPA often advises this person.
Ideally, a bookkeeper will have formal training such as an associate’s degree or a bachelor’s degree in accounting or a related field. However, no training is required to start working as a bookkeeper, and entry-level roles may only require a high school diploma. In addition, there is no regulated licensure for bookkeepers, although some private organizations do offer certifications.
The definition of an accountant varies widely across different sources because accountants have many roles depending on the needs of the business they serve. Accountants can be responsible for
Accountants are trusted advisors in the businesses they serve because they help management better understand financial information. This relationship leads to better decision-making and increased profitability.
Typically, someone serving as an accountant has at least a bachelor’s degree in accounting or finance. Accountants may also have a Masters of Business Administration (MBA), Masters of Accountancy (MAcc), or other graduate-level education.
An Accountant with sufficient education and experience may also become a Certified Public Accountants (CPA). CPAs are licensed by the state where they practice and must pass the Uniform Certified Public Accountant exam. Licensed CPAs must also earn Continuing Professional Education (CPE) credits each year.
At CenterFocus, we offer accounting services to all our clients. We believe that the additional financial insight and advisory services better serve our mission to help business owners live better lives. If you want to know more about how an accountant can help your business, check out our blog post or, schedule your free introductory call today.
