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Bookkeepers & Accountants, same thing, right?

It’s not so surprising that people ask this. After all, there does appear to be some overlap there: both bookkeepers
and accountants deal with company books, finances, regulations, and so on. But we’re not the same! (Some would
argue that bookkeepers play the most important role in a business’s finances.)

There are some key differences, and if you’d like to understand them, read on. 👉

An accountant and a bookkeeper both:

  • work with numbers
  • help people and businesses manage their money
  • maintain best practices in laws relating to finance and business​

Both are vital to managing money and helping businesses and individuals make smart financial decisions.
But they have different roles and responsibilities — hence, different names.

A bookkeeper is like a money detective.

A bookkeeper:

  •  identifies, measures, records, and tracks all the money that comes in and goes out of a business day-to-day
  • makes sure all financial information is organised, accurate, and up to date
  •  works with the business year-round to maintain healthy record keeping
  •  follows strict rules and regulations to maintain compliance with government regulations (VAT, payroll, etc)
  •  should be the first to notice, bank fraud, questionable transactions, and unnecessary expenses

An accountant is like a financial doctor.

An accountant:

  •  takes all the info that the bookkeeper collected, interpreting it to make sense of the numbers
  • analyses the financial information and reports on the annual health of a business
  • files annual tax returns and manages the client’s annual payments to tax authorities
  • understands tax law and stays current on all financial legal requirements to advise clients on long-term decisions and ensure regulation compliance

Without a qualified bookkeeper, the accounts can become quite messy — and the accountant will have a lot more
work to do sorting them out. I’ve heard it compared to going to the dentist having not brushed for the last 6

We love working in tandem with top accountants. We each serve our separate functions, but together we keep
businesses financially healthy and happy.