You will often find that a bookkeeper has the same qualifications as an accountant. However, it’s the services they offer and the role they choose to play within your business which makes the difference.
You will keep in regular contact with your bookkeeper whereas an accountant you may only need to speak to once per year. Most bookkeepers work happily alongside your chosen accountant or can even suggest an accountant to suit your requirements.
A bookkeeper will work more closely with you. They will have access to your daily transactions. They will be able to make suggestions for your business based on your processes and relationships with suppliers and clients.
A bookkeeper will offer services such as;
An accountant interprets the information which the bookkeeper has processed in order to present and file the Year End Accounts. The work of a bookkeeper and an accountant can overlap. It’s an accountant's role to look at the bigger picture when it comes to your finances such as producing cash flow forecasts and management accounts, although you will see a lot of bookkeepers, including myself offering this service as we are qualified to do so.
It’s definitely worthwhile investing in both a bookkeeper and an accountant for your business if your budget will stretch this far. The regular and consistent reconciliation of your finances will be much more beneficial to your business success. The one thing that accountants can do, but bookkeepers can’t, is tax planning. By having your books up to date and accurate by working with a bookkeeper, this means your accountant can better advise on the tax side of things to make sure you are using the rules and allowances to your advantage.