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What Does a Bookkeeper Do?
As suggested by the name a bookkeeper is concerned with keeping books. Some of their duties can be seen to overlap with an accountant as bookkeeping is vital to financial management.
Bookkeepers can play an important part in the efficient operation of a company. They are responsible for maintaining a precise picture of a company (or individual) financial transactions. They do this by logging payments and receipts as well as ensuring that payments are made and received at the correct time.
A bookkeeper will work on their customers accounts on a regular basis (weekly, in some cases). The volume and frequency of their work depends on the scale and complexity of a client business dealings.
Responsibilities of a Bookkeeper
- Recording of receipts invoices and inventory.
- Issuing and chasing invoices. Paying suppliers. Processing payroll.
- Monitoring petty cash transactions.
What Does an Accountant Do?
A bookkeeper range of responsibilities is relatively small an accountant is concerned with the whole financial picture. It is crucial that an accountant has up to date, accurate financial records to work with (like those provided by a bookkeeper). But they are more concerned with classifying and summarising the data so that meaning can be extracted from it.
As well as performing analysis and preparing reports and tax returns, accountants can produce projections on profitability and cash flow. Furthermore, an accountant is well placed to advise a business owner on tax strategy, financial forecasting, and general business planning. Additionally, as accountants encounter a variety of professionals from different industries on a regular basis, they’re often uniquely positioned to connect clients with useful business contacts and trusted service providers.
In addition to dealing with higher-level compliance, accountants can also choose to specialise in a variety of related areas (such as auditing or management accounting).
Responsibilities of an Accountant
Common duties include (but are not limited to):
- Preparing quarterly management accounts and year end company accounts. Calculating VAT liabilities.
- Filing returns (Corporation Tax, VAT, etc.). Corresponding with the relevant authorities (HMRC for instance).
- Advising on business structure.
- Preparing business plans and cash flow projections.
Bookkeeper and Accountant: Which is Best for My Business?
With the rise of digital and cloud based bookkeeping software many business owners opt to manage their own records. However partnering with an accountancy firm that leverages such technology ensures smoother financial management.
When to Hire a Bookkeeper
If your business requires regular transaction recording.
For smaller businesses with straightforward financial activities.
To manage day-to-day bookkeeping tasks.
When to Hire an Accountant
If your business is expanding or taking on more staff.
For tax compliance, strategic planning, and business forecasting.
If you require specialised tax advice or have complex financial needs.
Valuable Insights: Learn More
- Guide to Small Business Bookkeeping
- Bookkeeping Mistakes Your Business Needs To Avoid
Do You Need a Bookkeeper or an Accountant?
For many businesses the answer is both. While a bookkeeper ensures daily financial accuracy an accountant provides the strategic advice needed for long term growth. If your business is evolving or you require thorough tax assistance an accountant is a better option.
Why Choose IBISS & CO Bookkeeper and Accountant?
IBISS & CO offer comprehensive services according to your business needs. IBISS team of tax advisers & chartered accountants works with leading software like Iris and Kashflow to provide efficient reliable accounting solutions. Our tax professionals are available to assist small and large businesses alike.
