Similarities and Differences between Accounting and Bookkeeping

A bookkeeper Melbourne is often mistaken for an accountant and vice versa; however it isn’t difficult to mistake a bookkeeper for an accountant. There is a big misconception that these two professionals do the same job but in reality they are not really in the same league. Yes, there are a few similarities but that is where it ends because they are both very different from one another. In fact, the roles of the bookkeeper and accountant are quite complicated.

Bookkeepers Record All Transactions

First and foremost, bookkeepers have a varied role just like an accountant but their job is to really be the record keeper. The role of a bookkeeper is to simple record every transaction that occurs within the business. This can mean they note down in ledgers the amount of money received by clients and the amount of money being paid out for raw goods and materials. Bookkeepers also look at keeping record of the payroll; though they do not arrange payment but rather keep track of the amount of deductions and money being paid out. This can be extremely important for most businesses.

Accountants Verify All Financial Information

Accountants do a variety of activities, slightly different from that of a bookkeeper Melbourne. For instance they verify the information the bookkeeper records. The accountant can take the information received and turn it into a report about certain finances, highlighting the areas which are losing money. They also can create budgets and do the returns at the end of the year; but these are just a few small amounts of duties they will perform. The role of an accountant is varied and can be extremely important for a variety of reasons. It is their job to verify all information recorded by the bookkeeper to ensure accuracy and correctness. Find more info in this post:

Accountants and Bookkeepers Can Be Similar

To be honest, there are many similarities between a bookkeeper Melbourne and an accountant but there are subtle differences. Essentially both professionals look at the records of the business and record and verify certain things but that is where the similarities end. Accountants have a completely different job than that of a bookkeeper and it is important to remember that. You might be tempted to overlook bookkeepers in favor of an accountant but that isn’t wise. You need a bookkeeper just as much as you need an accountant.

Both Roles Are Vital

A lot of people mistakenly believe that accountants and bookkeepers are the same and essentially both aren’t needed. However, that isn’t exactly true because a bookkeeper cannot do the duties of an accountant and an accountant can’t technically do the duties of a bookkeeper. For starters their training is different entirely and secondly their fields are quite different. Yes, in many instances they are similar but only very slightly. When it comes to bookkeeping and accounting, they are two very different matters and that does mean you need an accountant and a bookkeeper. Bookkeepers aren’t difficult to find, and neither are accountants so choose the best professionals.

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