Accountant vs Bookkeeper: What’s the Difference?

The origin of book-keeping is lost in obscurity, but recent research indicates that methods of keeping accounts have existed from the remotest times of human life in cities. Babylonian records written with styli on small slabs of clay have been found dating to 2600 BCE. Mesopotamian bookkeepers kept records on clay tablets that may date back as far as 7,000 years.

On a day-to-day basis, Bookkeepers complete data entry, collect transactions, track debits and maintain and monitor financial records. They also pay invoices, complete payroll, file tax returns and even maintain office supplies. The primary purpose of bookkeeping is to record the financial effects of transactions. An important difference between a manual and an electronic accounting system is the former’s latency between the recording of a financial transaction and its posting in the relevant account.

Qualifications to Be a Bookkeeper

Analytical Thinking — Job requires analyzing information and using logic to address work-related issues and problems. Stress Tolerance — Job requires accepting criticism and dealing calmly and effectively with high-stress situations. Leadership — Job requires a willingness to lead, take bookkeeper charge, and offer opinions and direction. Independence — Job requires developing one’s own ways of doing things, guiding oneself with little or no supervision, and depending on oneself to get things done. Initiative — Job requires a willingness to take on responsibilities and challenges.

While https://www.bookstime.com/s make sure the small pieces fit correctly into place, accountants use those small pieces to draw much more significant and broader conclusions about a company’s finances. Accounting often requires more education than becoming a bookkeeper, where most accountants hold undergraduate or graduate degrees or even MBAs in accounting, economics, or finance. The bottom line may also come down to the available money for expenditure. Some small entrepreneurs do their bookkeeping and will only require an accountant when tax accounting or intricate financial processes require the expertise of a tax accountant or CPA. A bookkeeper’s work schedule often depends on the size of the business they work for. Small businesses may only need a bookkeeper to pay expenditures, reconcile income and deposits, and manage bank statements.

Are bookkeepers accountants?

This only entails a few hours a month, therefore these businesses may not need to staff a bookkeeper full time. Bookkeepers are found in most every industry, as well as schools, government, and firms that provide accounting, tax preparation, bookkeeping, and payroll services.