Balancing the books is one of the most important aspects of running a successful business. It is often the job of several different people to go over these financial records and keep them accurate. Although both bookkeepers and accountants look over the figures and create reports, the jobs they perform are usually different. It is the belief of some that the terms are identical, but that is not true.
Bookkeepers usually do not have the same schooling as accountants. Their degrees are often different and they have taken different classes. The actual recording duties for a business are often done by the bookkeepers. Once the figures are recorded in a ledger, they go on to the next. Their job usually does not consist of analysis and planning. That by no means that they are unqualified to perform advanced financial tasks, it is just not often asked of them. Most of the bookkeeping duties are on a monthly cycle, consisting of recording transactions, writing reports, and making minor adjustments.
Accountants are responsible for much more analysis and planning than bookkeepers. In large businesses, they often design the bookkeeping system and then monitor it. Once the reports are provided by the bookkeeping team, the accountants analyze them and decide on the courses of action to take. Because of the bookkeeping knowledge required, it is often the job of the accountant to act as supervisor to the bookkeepers. Once accountants have looked at the ledgers, they will calculate figures such as new interest numbers or pending employee wages. They will then draw up financial statements for the business.
A single person can usually complete the job of both bookkeepers and accountants in a small business. This is due to the fact that bookkeeping is one component of accounting. Smaller businesses do not move the same volume as a large corporation, so one person can take care of the recording and analyzing duties and no distinction is needed. There are regulations in some states, though, that rigidly govern the financial duties a person is qualified to perform. States such as these give only licensed accountants permission to do the job of an accountant and provide guidelines to the business detailing these jobs. In some places, the distinction between a bookkeeper and an accountant is one of prestige. Those that have taken the extra schooling and taken the tests to become an accountant can be especially sensitive to the difference between the two.
With the advent of new software all the time, the lines between a bookkeeper and accountant are becoming somewhat blurred. Some bookkeepers and accountants end up doing the others job. As this continues, there may become less of a distinction between the two.
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