Sorry if you clicked on here hoping to hear a great punchline to tell around the office, but this is not a joke. Many business owners fail to understand the difference, and that is no laughing matter when it comes to your business. So, whats the difference between a bookkeeper and an accountant?
When it comes to business finances, it is easy to get lost in numbers and confused about who does what. Here at Pebbles, we decided to make the whole thing as easy as possible to break down into who does what and how.
What is Bookkeeping?
Bookkeeping is an important first step in the whole accounting process, which focuses on keeping your business books and accounts neat and accurate.
This responsibility falls onto the bookkeeper to keep complete records of every financial transaction made throughout your business. Whilst you may think this is just collecting a few receipts and invoices, it is a far more complex process to ensure all essential data for your business is collected, organised and collated.
It is not just analyzing numbers either – a bookkeeper brings logic and organization skills to the table on a majority of company strategies. It helps to have someone who can provide common-sense procedures towards your business transactions done day by day and tally it at the end of a month.
On top of this, bookkeeping services in Manchester aid in sending out invoices, recording incoming money, supplier invoices, payroll, petty cash… you name it, a bookkeeper has their eyes on it.
This plays a very helpful hand around the time of that annual tax return which requires fully accurate financial records. In understanding that your records are all perfectly recorded and prepared, then there are no nasty surprises waiting for you and your accountant at the end of the financial year.
Bookkeeping services play the most vital role in keeping your business efficient and effective.
Then What About the Accountant?
When it comes down to the bigger financial arena, your accountant takes charge. What they do is scope the entire accounting process that has been supported by the base information from your bookkeeper.
Your accountant interprets this data provided as a way to forecast your financial security and determine a clear path for business growth. They will use their accounting in financial, management, tax, auditing and other services to provide a strong backbone for the company growth ahead, as well as aid in tax savings where available, providing a strong bridge to push your business over year by year.
Therefore if you are requiring bookkeeping services in Manchester, you stand to have a good, solid and organized structure to your finances to continue building your business. If you’re still wondering whats the difference between a bookkeeper and an accountant, Contact the team at Pebbles today.