Some accounting software products automate bookkeeping tasks, like transaction categorization, but it’s still important to understand what’s happening behind the scenes. While the basics of accounting haven’t changed in over 500 years, the practice of bookkeeping has. Bookkeeping was once done manually using actual books called journals and ledgers.
With bookkeepers, there are a lot of minutiae involved, and keen attention to detail is paramount. Accountants, on the other hand, tend to use the bookkeeper’s inputs to create financial statements and periodically review and analyze the financial information recorded by bookkeepers. We’ve listed some of the key differences when it comes to the requirements and job market for each. It’s important to note that not all lenders and investors require certified or audited financial statements. However, it’s still a good idea to ask an accountant to review your bookkeeper’s financial statements for accuracy and completeness prior to submitting them to a third party for consideration.
We are here to help your restaurant businesses grow
There are critical differences in job growth and salaries between the two. Growth for accountants and auditors is expected to continue for the next several years. The accounting and bookkeeping services Bureau of Labor Statistics (BLS) expects 6% job growth in this field from 2021 to 2031. Accountants are largely responsible for the financial health of a business.
Some bookkeepers focus solely on “write up” work, which basically consists of compiling the books quickly, usually for tax preparation purposes. Other bookkeepers provide “full-charge” services and can even serve as a financial controller for your company. Accounting is for trained professionals who can give a fuller summary of your company’s financial realities. Accountants rely on financial statements from bookkeepers to do their work, but they also look for larger trends and the way money works across the business. While any competent employee can handle bookkeeping, accounting is typically handled by a licensed professional. It also includes more advanced tasks such as the preparation of yearly statements, required quarterly reporting and tax materials.