What Is The Difference Between Bookkeeping And Accounting?
For those who excel and have interest in mathematics as well as numbers, there are plenty of career paths that they can take into consideration. And one field to which they can take is accounting and bookkeeping. Even though some of the skills and responsibilities of these careers may overlap, both have a distinctive description, which makes them different from the other.
What is a Bookkeeper?
This profession has the responsibility of recording financial transactions in chronological order that occurs either for a business or an individual. All of the recorded transactions have to occur on daily basis for an ongoing record of activity.
These days, there are available software programs that are automating most of these processes on behalf of the individual or business. Added responsibilities may consist of classifying and summarizing financial data and transferring the details to periodic financial reports. Bookkeepers who are assigned with such responsibilities however will still not have the same level as of an accountant but, this position is higher than entry level employees.
The Job of an Accountant
In relation to this profession for payroll services, it consists of analysis of data recorded in financial statements. This employee does the work that meets the set principles, standards and requirements of the client. After the analysis is done, the employee is going to finalize his or her interpretation through a report. Business owners can use this report as basis for their future decision making, which guarantees that the owner has all pertinent info about investments, expenses, revenue and even account balances.
Their Differences and Similarities
While it is true that bookkeeping with online accounting software as well as accounting involves financial data, the job of an accountant is requiring more analysis and reporting compared to what's done by bookkeepers. Depending on the company's size, it is feasible that the bookkeeping position may involve various tasks that often fall to accountants. This is true particularly with the integration of software programs, which eliminates most of the analysis that's performed traditionally by an accountant. This said automation and classification requires human intervention, which is now a process that could be carried out by a computer program.
Preparing for advanced career will take more effort and time too than what is done to prepare for bookkeeping position. Most often, a student is earning bachelor's degree but students are pursuing advanced degrees in this field. Within a company, accountants are those who are overseeing and supervising division, working with bookkeepers who perform daily financial tasks required for the financial health of the business. Watch https://www.youtube.com/watch?v=CHLlE13KpLs to gain more details about bookkeeping.