Bookkeeper-Accountant, What is the difference?

As a virtual bookkeeper, I often get asked, "Are you an accountant?"  Short answer, "No," but what really is the difference between the two?   I'm going to try to tackle that question for you now.  Keep in mind, these comparisons are fairly basic and many times one can and does overlap with the other.

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Your bookkeeper will be the one that enters in and correctly records the money you earn and the money you spend whether they be expenses, liabilities, etc..

Your accountant will then use this information to produce financial reports and prepare your tax returns and tax liabilities.

This relationship between bookkeeper and accountant can vary greatly depending upon the skill and comfort level of both as well as the desires/needs of the company.  While some bookkeepers will only be asked to enter in the daily financial transactions of a business, others will be in charge of reconciling accounts, conducting monthly general journal adjustments and preparing the financial statements for the businesses internal purposes. 

The most important thing is that information entered is timely and accurate and that both the bookkeeper and the accountant work well together for the benefit of the company.

Preparing for Tax Time