What is the difference between Bookkeeping or Accounting?
Here at Ashored we are often asked “What’s the difference between bookkeeping and accounting?”. Bookkeeping is the first part of the accounting process, so the work of a bookkeeper and accountant often overlaps. Bookkeeping focuses on recording and organising financial data, while accounting is the interpretation and presentation of that data.
What is a bookkeeper?
Bookkeeping skills are invaluable to a business. A bookkeeper will keep an accurate track of the money coming into and out of the business, carrying out tasks like managing the day-to-day cash flow, preparing for year-end tax returns and help keep the finances running efficiently.
The key roles and responsibilities of a bookkeeper include:
Bookkeepers handle day-to-day financial transactions. They record and organize data such as sales, expenses, and payroll.
Bookkeepers pay meticulous attention to details, ensuring accurate records.
They maintain nuanced records of financial activities.
Bookkeepers focus on the present—recording and organizing data.
Their role is essential for maintaining financial order, but it’s more limited in scope than the role of an Accountant.
Bookkeepers provide the groundwork for Accountants by creating detailed financial records.
What is an accountant?
An accountant performs a wider range of tasks and focuses on the bigger financial picture, analysing the information provided by bookkeepers to carry out audits, generate financial statements and forecast future business needs.
The key roles and responsibilities of an Accountant include:
Accountants take the bookkeeper’s detailed records and translate them into tax preparation, financial statements, and business advice.
They look at the bigger picture—analysing financial health, offering strategic advice, and forecasting.
Accountants ensure tax compliance and minimize tax liabilities.
Accountants focus on the future—helping businesses thrive and grow.
Business owners shouldn't be afraid to keep looking until they find bookkeeping or accounting professional that they actually like! A good bookkeeper and accountant is friendly and approachable and there to support the business. Here at Ashored we pride ourselves on being close to the numbers, but more importantly, understanding what those numbers mean to the people who run the business. Rather than checking-in once a year to get the accounts and tax return filed, bookkeepers and accountants are there for their clients every step of the way.
By bringing meaning to the numbers, de-jargonising the accounts function, and supporting their clients' and employers' ambitions, bookkeepers and accountants help businesses flourish. Why wouldn’t a business owner want someone who is just as passionate about the success of the business as they are?
In summary, while both bookkeepers and accountants contribute to a business’s financial well-being, bookkeepers handle daily transactions, while accountants provide overarching financial advice and tax guidance.
Contact Ashored for help and support with your Bookkeeping and Accounting requirements.