The Difference Between Accountants And Bookkeepers
At times, you might have contemplated that bookkeeping and accounting are identical terms. However, to your surprise, these terms are quite different irrespective of a few facets they share common in them.
Let us see how exactly bookkeeping is different from accounting.
Bookkeeper vs Accountant
There are plenty of differences between the two that businesses need to know, though. A bookkeeper simply records the day to day transactions while the accountant maintains accurate financial statements and accounts of the company.
Bookkeeping: Recording and Filing
First, take a look at bookkeeping and the tasks that corporate bookkeeping professionals usually do in Singapore. This mainly consists of day to day functions. These are the professionals that keep track of employees and take care of payroll. They take the time to send out invoices, and they take care of debits and credits
- The most important role of a corporate bookkeeper is to record and review all financial data.
- Bookkeepers record financial information electronically, such as employee payroll.
- Bookkeepers also prepare financial reports, handle bank deposits, track purchases, submit bills for a client’s accounts receivables, or prepare files for federal and local taxes.
Accounting: Analyzing and Reporting
Accounting service providers in Singapore may wind up doing many of the same tasks that bookkeeping professionals take on, but they also do quite a few other things.
These accounting services professionals are the ones to call for cost analysis, or if a business wants to see the long term picture of their finances.
- Responsible to ensure the accuracy of financial documents, as well as their compliance with relevant laws and regulations
- Liable to prepare and maintain financial reports
- Is responsible for preparing tax returns and ensuring that taxes are paid properly and on time
- Evaluate financial operations and recommend best-practices, identify issues, develop strategies to help organizations run efficiently
- Guide the firm on cost reduction, revenue enhancement, and profit maximization
- Conduct forecasts and risk analysis assessments
Look at the list of tasks that both of these accounting professionals in Singapore are known to handle and decide which one is right for the business. It will make finding a person to handle their financial needs that much easier for both small and large businesses.
Bookkeeping vs Accounting - Roles and Responsibilities
- Bookkeeping is related to the recording of financial transactions. Transactions consist of sales, purchases, income, and payments by an individual or organization.
- Bookkeeping should not be confused with accounting. The accounting process is generally performed by an accountant.
- The accountant prepares financial reports from the recorded monetary transactions recorded by the bookkeeper and files forms with governance.
- There are some common techniques of bookkeeping such as the Single-entry bookkeeping program and also the Double-entry bookkeeping system. But while these systems may be seen as "real" bookkeeping, any process that involves the recording of monetary transactions is a bookkeeping procedure.
- A bookkeeper also recognized as an accounting clerk or accounting technician is an individual who records the day-to-day financial transactions of an organization.
- The bookkeeper ensures that all transactions are recorded within the correct daybook, suppliers ledger, customer ledger, and general ledger
- An accountant may prepare the earnings statement and stability sheet using various accounts and ledgers prepared by the bookkeeper
An accountant will also take care of tax situations, such as filing taxes, getting audited, and so on.