When most people think about bookkeeping and accounting, they would be hard-pressed to describe the differences between each process. While bookkeepers and accountants share common goals, they support your business in different stages of the financial cycle.
Bookkeeping is more transactional and administrative, concerned with recording financial transactions. Accounting is more subjective, giving you business insights based on bookkeeping information.

The bookkeeper role vs the accountant role

Understanding the difference between bookkeeping and accounting is empowering as a business owner, but it’s also important to understand the kinds of credentials accountants and bookkeepers have in order to determine how or when to use each. Read on for a look at what the roles of bookkeeper and accountant entail.

The bookkeeper
Typically, bookkeepers are required to have between two and four years of experience or an associate’s degree. To be successful in their work, bookkeepers need to be sticklers for accuracy, and knowledgeable about key financial topics. Usually, the bookkeeper’s work is overseen by either an accountant or the small business owner whose books they are doing.

The accountant
To qualify for the title of accountant, generally an individual must have a bachelor’s degree in accounting. For those that don’t have a specific degree in accounting, finance degrees are often considered an adequate substitute.

Accountants, unlike bookkeepers, are also eligible to acquire additional professional certifications. For example, accountants with sufficient experience and education can obtain the title of Certified Public Accountant (CPA), one of the most common types of accounting designations. To become a CPA, an accountant must pass the Uniform Certified Public Accountant exam and possess experience as a professional accountant.

Regardless of the size of your company, it is critical for ongoing success to ensure the financial accuracy of daily transactions and use that data to make decisions for the future of your business. If you feel your business is growing too quickly for a do-it-yourself approach to finances, you should consider hiring someone to help you keep track and make sense of your business transactions.
An accountant's work depends on a bookkeeper's records, so hiring both may be a good idea for your business. However, when doing so, be sure the individuals are qualified by asking for references, checking for certifications or running screening tests. It's crucial to have accurate data from both.

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