{"id":289,"date":"2017-04-25T13:02:25","date_gmt":"2017-04-25T13:02:25","guid":{"rendered":"https:\/\/www.oneaccounting.co.uk\/news\/difference-between-bookkeeper-and-accountant\/"},"modified":"2023-01-11T11:06:08","modified_gmt":"2023-01-11T11:06:08","slug":"difference-between-bookkeeper-and-accountant","status":"publish","type":"post","link":"https:\/\/www.oneaccounting.co.uk\/difference-between-bookkeeper-and-accountant\/","title":{"rendered":"What\u2019s the difference between a Bookkeeper and an Accountant?"},"content":{"rendered":"

One of the first questions that a start-up business asks us is to explain the role of the bookkeeper and the accountant in small business finances. Many people get confused about the role that each performs. And others think that they need an accountant when they actually need a book-keeper and vice versa. The terms seem to interchange a lot whenever I am speaking to new business owners.<\/p>\n

In this article, I will explain the duties of a bookkeeper and an accountant, the main differences, and give some guidance on who you should be calling on to help you with your business finances.<\/p>\n

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One of the first questions that a start-up business asks us is to explain the role of the bookkeeper and the accountant in small business finances. Many people get confused about the role that each performs. And others think that they need an accountant when they actually need a book-keeper, and vice versa. The terms seem to interchange a lot whenever I am speaking to new business owners.<\/p>\n

In this article I will explain the duties of a bookkeeper and an accountant, the main differences, and give some guidance on who you should be calling on to help you with your business finances.<\/p>\n

What does a bookkeeper do?<\/h2>\n

A bookkeeper\u2019s main role is to process the financial transactions of a business into a software system such as Xero or Freeagent<\/a>, and help turn the wheels of the business by paying bills and chasing customers for payment. All businesses will generate a lot of paper, such as purchase invoices, receipts and expense claims. The bookkeeper will transform a bundle of paper into something orderly and accurate. Some bookkeepers will also prepare VAT returns, run payroll and prepare and file self assessment tax returns.<\/p>\n

Most book-keepers operate as a stand alone service. In some ways it\u2019s like having your own part-time finance person, but remember that they will need to take holidays and are often juggling their workload.<\/p>\n

What does an accountant do?<\/h2>\n

An accountant\u2019s main roles are to deal with higher level compliance such as filing accounts and tax returns<\/a>, and to advise the business owner on the strategic management of their business<\/a>. A good accountant will also conduct regular tax planning<\/a> to minimise business and personal tax liabilities<\/a>, and provide advice on cash flow management<\/a>. They can act as a sounding board for your ideas and make introductions to a range of other trusted service providers.<\/p>\n

Accounting firms have a range of team members who will provide different levels of service to the business. At One Accounting, our clients can expect to work with three or four dedicated members of our team over the year. An accounting firm can provide an all year round service and cover when team members are on holiday or involved with other clients.<\/p>\n

So\u2026..what\u2019s the difference?<\/strong><\/p>\n

Frequency<\/h2>\n

A book-keeper will work on your books weekly, fortnightly or monthly. The frequency depends on the size and complexity of your business, and also how up to date you need\/want your financial records to be.<\/p>\n

An accountant will generally work at less frequent intervals, for example to work on quarterly VAT returns<\/a> or annual accounts<\/a>. They could be involved on more specialist projects at certain times, for example to work on a business plan or cash flow forecast<\/a>.<\/p>\n

What does a Bookkeeper do? What does an accountant do?<\/h2>\n

Here\u2019s a split of the duties that each will typically do. Note that some tasks can be performed by both the bookkeeper and the accountant.<\/p>\n

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Qualifications and Experience<\/h2>\n

A bookkeeper doesn\u2019t need to be qualified, but many will be follow studies with the Institute of Certified Bookkeepers (ICB)<\/a>, International Association of Bookkeepers (IAB)<\/a> or Association of Tax Technicians (ATT)<\/a>. Many have experience of working in banks or in a financial role in a larger firm, before becoming self employed.<\/p>\n

Accountants in Practice study for one of the main four UK Chartered Accountancy Institutes.<\/p>\n