What are the major differences between a bookkeeper and an accountant?
A professional bookkeeper enters all monthly financial data, reconciles, balances & reviews all financial data. They also prepare, and then review financial statements with the business owner(s). Today’s professional bookkeeper is expected to know: a. What Debits & Credits are b. How to set up a proper Chart of Accounts c. Must be able answer questions from the company’s tax preparer. The accountant (Certified Public Accountant), is generally the person whom the bookkeeper turns all of the annual bookkeeping records to, in order to prepare annual tax returns. They should also give sound tax advice & tax planning. TIP: You should never have the same person/company who does your bookkeeping, prepare your tax returns. This offers an extra set of eyes for errors and this also helps as a double check on any inconsistencies in the accounting of the books.
