What’s the Difference Between Bookkeeping and Accounting?
As a business owner, you need to understand the best methods for managing your finances. That often requires the services of both a bookkeeper and an accountant. These two professions are closely aligned, but they serve different functions in helping your business grow.
Both bookkeepers and accounts are responsible for executing financial tasks demanding professionalism, dedication, and attention to detail.
The Difference Between Bookkeeping and Accounting
If you insist on simple job descriptions to explain the difference between bookkeeping and accounting: Bookkeepers track and document your business financials. Accountants analyze them. Of course, that’s a fundamental explanation of two jobs that are critical to your business success.
What Does a Bookkeeper Do?
Bookkeepers provide daily services to document a business’s cash flow. To accomplish this, they perform these and other tasks:
- Maintain ledgers and financial records
- Track payables and disburse payments
- Document sales, receivables, and invoicing
- Prepare payroll
- Prepare data-rich financial reports
Many Connecticut bookkeepers have at least an associate’s degree, which usually includes some accounting education. Bookkeepers must be analytical and capable of detail-oriented work. They must also have a working knowledge of spreadsheets, computer accounting programs, and mathematics.
What Does an Accountant Do?
Accountants use bookkeeping documentation, data, and reports to analyze a business’s finances. They also provide recommendations to help improve a business’s operations.
Given the country’s past focus on corporate accounting misdeeds, accountants have assumed a heightened ethical responsibility. They assist companies in maintaining ethical accounting standards and financial transparency.
Accountants supply these and other business financial services;
- Provide ethical financial solutions to help businesses operate more efficiently and become more profitable
- Help businesses comply with local, state, and federal laws and regulations
- Prepare financial reports
- Complete tax returns and assist businesses in complying with tax laws
- Assist risk-management efforts with financial histories and projections
In Connecticut, Public Accountants and CPAs must pass a written examination as required by the state’s Code of Professional Conduct, Title 20 – Professional and Occupational Licensing, Certification. Accountants must have at least a bachelor’s degree from an accredited college. They must have completed at least 150 credit hours consisting of:
- 36 semester hours in accounting education,
- 30 semester hours in economics and business administration education other than accounting
- 60 semester hours in general education
- 24 semester hours in other for-credit courses
CPA candidates may take their test once they’ve earned 120 semester hours toward their degree. This degree must include 46 hours in accounting and related courses. They must also renew their license annually and meet a four-hour ethics requirement every three years.
Goode Bookkeeping and Consulting
We are proud to offer quality, detail-oriented bookkeeping services. Our founder is a CPA with a successful track record managing financial accounts for Fortune 500 companies. We follow his lead in our commitment to provide professional, high-quality services to all of our customers.
Contact Goode Bookkeeping & Consulting
Contact us to learn more about our bookkeeping and professional services. Give us a call at (860) 659 6543 or complete our Contact Form to schedule your free consultation.