The general misconception about working with business financials is that bookkeeping and accounting are two titles for the same job. While they might look the same, a closer look reveals some very important differences. Here are the major distinctions between these two necessary aspects of business.
In the Details
Bookkeepers are professionals that focus on the day-to-day operations of a business or institution. They organize data, allowing it to be easily tracked and referenced while also preparing tax documents and other financial statements. Their job is to know the intricacies of cash flow within your organization.
An accountant may have all of the responsibilities of a bookkeeper, but additionally has the training and expertise to analyze that data, making predictions and recommendations by identifying trends. He or she also establishes the methods used by a particular business to track financials, essentially laying out the rules that bookkeepers within the organization have to follow.
The Right Tools
If accountants do all of the jobs that bookkeepers can, why not only employ accountants? Bookkeeping has its place within a business, and having an employee dedicated to the meticulous tracking of financial data is essential. They will be the person you go to for checking facts and figures, making sure the business runs smoothly every day.
While accountants reference this data, their skills are mainly employed to advise board members, CEOs and CFOs on major and minor fiscal conclusions. By analyzing a bookkeeper’s data they can run reports and create forecasts allowing those running the business to make informed decisions
Utilizing the skills of bookkeepers and accountants in your organization will make sure you’re prepared for any present or future financial situations that might arise. For more information on the differences between bookkeepers and accountants, contact KMA Bodilly today. Our expert team is ready to provide consultation services and help you manage your fiscal data. Get your financials on the right track with KMA Bodilly!