Accountants Vs. Bookkeepers
Some general fundamental differences between the above roles; Accountant has
a much broader meaning, while bookkeeper is focused mainly on transactional
recording.
Bookkeeper
- Controls the source documents that come into the business
- Records detailed bookkeeping entries to account for the transactions of
the business
- Prepares a trial balance at the end of every period to be reviewed by
management
- Records the adjusting journal entries prepared at the end of every
period, such as depreciation, asset reserves and bad debts.
Accountant
May perform all the duties above, plus the following:
- Reviews detailed bookkeeping transactions and summaries to detect errors
or omissions
- Presents and interprets summary financial information for senior
management
- Designs the internal control processes of the company to assist in day
to day operations and to prevent fraud
- Projects the future growth of the business
- Provides explanations for differences between the actual performance of
the business and projections.
If you are a one man show in your small business, all the above doesn't
really matter as you will be the overall person in charge of the overall process
of the business.