Whether you are a novice or an experienced person in the business sector, we bet you still find it hard to differentiate between the terms accountant, tax adviser, and bookkeeper. Though all three of these professionals deal with the tax matters, their responsibilities and roles are quite different.
Role of a bookkeeper
Bookkeeping is vital to any financial and business management. As the term indicates, the role of the bookkeeper is to “keeping books”. Thus, bookkeepers help in preparing accounts by maintaining records.
A bookkeeper ensures the smooth functioning of businesses by maintaining records. The day-to-day tasks of a bookkeeper include:
- Completing VAT returns
- Preparing statements to show income and payments
- Dealing with sale invoices, payments, receipts, and income
- Ensuring accounts are perfect and accurate
- Handling valuable and commercially sensitive information
- Providing administrative supports to accountants
- Using accounting systems
- Preparing salaries/wages and managing claims for expenses
What’s the role of an accountant?
The accountant deals with a bigger picture as his role is associated with the whole financial structure. A top-notch accountant, usually a chartered one, summarise and classify to extract meaning from it. He does so by receiving up-to-date, accurate financial records from the bookkeeper. See, though the roles are different both are interconnected.
The accountant further prepares various reports and self-assessment tax returns. An accountant also makes projections on cash flow and profitability. A chartered and top-notch accountant can also give useful advice to business owners on tax matters, tax strategies, business planning, and financial forecasting.
Usually, an accountant performs the following roles:
- Calculating VAT liabilities
- Preparing business plans and forecast cash flow
- Providing useful advice regarding business structures
- Filing various types of tax returns
- And, to prepare quarterly and annual management accounts and company accounts respectively.
Now that we have explored and understood the roles of bookkeepers and accountants, let’s find out which one of the both best suits your business structure.
Bookkeeping or accountant: Whom should you hire?
The arrival and subsequent switch towards cloud-based and digital bookkeeping software have left a big impact on the bookkeeping profession as more and more businesses and private individuals are finding it easy and economical to use them.
But this software can only meet the basic needs of private individuals and small-business. When it comes to accounting and bookkeeping needs of medium-sized and large-sized companies, seeking the services of a top-notch and reliable accounting firm that combines experience with technology remains the only and the best option.
Our firm has served thousands of happy clients from a wide array of businesses. Our accounting and tax advisory services have been trusted by all of our clients, the testimonial of which are available on our website, social media websites, and Google.