Many people who are starting up a business are often confused when it comes to the difference between a bookkeeper and an accountant…and hopefully this blog will answer your questions.
What does a bookkeeper do?
The primary role of a bookkeeper is to process financial transactions and to help by paying bills as well as chasing payments. Every company will generate a mountain of paperwork. Having a bookkeeper makes all of this less daunting, by filing things properly and organising everything in a way that is much easier to deal with.
What does an accountant do?
Your account is there to do with higher levels of compliance, such as tax returns and accounts. They are also there to advise on the strategic management of the business. They may also conduct regular tax planning in order to avoid/minimise personal tax liabilities.
What’s the difference?
A bookkeeper will work on things more regularly depending on the complexity of your business. An accountant will be less active, but they will focus more on specialist projects. This includes VAT returns and annual accounts.
When you find a bookkeeper, they may have a range of basic tax skills, but you should always ask what level they are at. Accountants take exams at a higher level to bookkeepers before they qualify. If you can find an accountant that is qualified to do both, then you are on to a winner!
Can I get an accountant that also does bookkeeping?
Some firms offer a separate service to address both needs. With Aston Black, you can have a chat with our team and see how we can help you with your accounts and bookkeeping. Two birds, one stone…winner winner!
Keeping track of accounts, taxes and bills can be very stressful, especially if it’s a new business. It doesn’t have to be. Having the right accountant to take care of everything for you will ease the burden and allow you to spend your valuable time on your business. If you have recently started a new business, check out our free e-book to get you started. If you think getting an accountant is the next step for you, then get in touch and see what we can do for you.