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Bookkeeper vs. Accountant

Bookkeeping is more focusing on entering and recording transactions where accounting is more about giving the business insight based on the bookkeeping information.

Bookkeeping consists of:

  • Recording financial transactions
  • Posting debits and credits
  • Producing invoices
  • Paying vendor bills
  • Maintaining and balancing subsidiaries, general ledgers, and historical accounts
  • Completing payroll

Accounting consists of:

  • Recording expenses that have occurred but aren’t yet recorded in the bookkeeping process
  • Preparing company financial statements
  • Analyzing costs of operations
  • Completing income tax returns

Aiding the business owner in understanding the impact of financial decisions

Bookkeeper VS AccountantBookkeeperAccountant
RoleRequired for identification, classification and recording of all financial transactionsInvolved in interpreting, summarizing and communicating the financial transactions
Tools UsedJournals and LedgersProfit & Loss, Balance Sheet and Cash Flow Statement
Skills RequiredNo special skills requiredProfessional degree in accounting and analytical skills for interpretation
ComplexityLevel of complexity is lowComparatively high level of complexity
Financial DecisionsCannot be made based on book-keepingDecisions can be made on accountant’s records
Management Role·       Single Entry·       Double Entry·       Virtual·       Management·       Financial·       Payroll compliant·       Tax compliant
Bookkeeper vs. Accountant

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