Have you ever wondered what the difference is between an accountant and a bookkeeper? While they have a lot of overlap, most of them specialize in one type of service. For the most part, accountants have a Bachelor’s degree in accounting. Bookkeepers may or may not have an accounting degree. Let’s get into more detail about the difference between the two.
When you think of an accountant, the number one thing that comes to mind is taxes…and that is what most of them do focus on. Most accountants will do both individual and business taxes. They may also provide business tax plans and budgeting. Accountants may be one of the most important people to get started with when you have a start-up business. By having a plan from the beginning, you can save yourself come tax-time. On the other end, they can also help you plan if you wish to sell your business soon.
Bookkeepers usually focus more on maintaining the books of their business clients. This is important because as the work grows, so does the chance of messing up your books. While this might not seem critical at the moment, it can make things like getting a loan super hard. You also won’t be able to know your business’s profitability. Bookkeepers can also help with invoicing, bills, and budgeting. With extra training, a bookkeeper could also offer tax preparation services.
Most accounting tasks are shared between bookkeepers and accountants. Depending on state laws, the only major difference is that accountants have a degree while bookkeepers may or may not. It’s important to have both an accountant and a bookkeeper on your side. Each is great at what they do and can help guide you through the entrepreneurial process.
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