Bookkeeper vs. Accountant

I get called an accountant quite often and don’t get me wrong… Thank you… but that is not my profession. There are some serious differences between a professional bookkeeper and an accountant aside from the amount of schooling each profession requires.

Bookkeeper Responsibilities Include:

• Daily tasks: This usually includes ensuring suppliers are paid on time and customers have paid according to the invoice they received.

• Bank reconciliations: These are so important in making sure all the business activities are recorded and accounted for, usually on a monthly basis.

• Payroll: Generally an individual with a background in business administration and/or accounting will have the knowledge to complete payroll cycles. This also likely includes shareholder remittance such as Receiver General and WSIB, among others.

• Monthly statements: These would be the unaudited version of the financial statements that include all the business activities in a given period of time. Bookkeepers would also gather documentation an Accountant would need to complete an audit.

Accountant Responsibilities Include:

• Audits: An accountant would be provided with a file that would contain all the documentation required for an audit to ensure a business is accurately receiving and recording information for daily transactions.

• Adjusting entries: After an audit is completed some adjusting entries may be required. An Accountant would prepare the entries for the bookkeeper to enter at the businesses year end.

• Taxes: Accountants would file tax returns for individuals, sole proprietor’s and corporations. They would also provide tax planning and advisory services as needed.

Each profession relies on the other to keep a business operational and running smoothly but tend to have very different daily tasks (…and costs).

I hope this helps if you are deciding whether your business requires a Bookkeeper or an Accountant.