When you first set up your business, you probably heard the terms ‘Bookkeeper’ and ‘Accountant’ thrown around in abundance. Would you be shocked if I told you that the two jobs are completely different? They overlap in certain areas but they’re two very different paths in the finance industry.
What is a bookkeeper?
A bookkeeper’s job, primarily, is to create financial data for their employer/client. This includes accurately record finances, ensuring entries are correct, and recording and calculating the income and expenses of a company.
In short, they create data. Data about how much the business is making and spending, data on how much is made daily on average, data on anything that involves money with your business.
What is an accountant?
This is where we start to see the difference. An accountant files tax returns for your business, oversees your accounts, and, most importantly, provides your business with financial decisions.
A good accountant (like the online accountants you can find at Zooconomics) will look at your businesses finances and be able to tell you how you can improve your income. This includes how to claim back on your expenses (including your accountant fees), providing you with knowledge about tax law, and when it’s best to start growing your business.
So, to summarise, a bookkeeper creates financial data whereas an accountant uses that data to make financial decisions.
Accountant Vs Bookkeeper
So which one do you need? Is it better to have a bookkeeper or an accountant?
Accountant, hands down.
Having a good bookkeeper is an incredible asset to a business, but having a good accountant is a necessity. For most freelance businesses, a bookkeeper would be overkill as the financial data provided can be reasonably managed. Especially if you’re using up-to-date cloud-based accounting software. With this, you can manage accounts on the move, 24 hours a day, and control your invoices whenever you please.
On the other hand, having an accountant is a key asset that most startups find will keep their business afloat. Not only will they do your crucial tax returns, they also provide you with their years of experience in finance. They’re a valuable ally in the world of business, and their business acumen can be the difference between an average startup and an incredible first year.
If you’re interested in getting an online accountant for your business, contact Zooconomics and we’ll provide you with a quote that suits your business.
For more information call 0800 0460 560