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Accountant? Bookkeeper?
Posted by Anonymous on 07/24/2008 - 21:17
What is the difference between an “Accountant” and a “Bookkeeper”? And what qualifications do you need for each?
Linda A. Wall, EA
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accountant v bookkeeper
bookkeepers record and summarize transactions. Accountants analyze and report the transactions. As has been described, accounting requires a higher level of understanding of GAAP.
Accountant or Bookkeeper?
I call myself a bookkeeper (I don't have a degree &)because I'm not a CPA, and (around here anyway) if you say accountant the next questions is , Are you a CPA?; but after reading the other responses I guess I should be calling myself an accountant (as well as a tax professional and an Enrolled Agent) because I can do it all and understand the tax consequences of what is done. Some people use the two titles interchangably, but I guess they shouldn't be. I have had clients bring in things that CPA's had done wrong, so I guess it all boild down to "what you know", what your specialty is. I specialize in all aspects of self employed/small business. I have a cousin with a accounting degree who has never done anything except payroll. The client needs to interview the prospective bookkeeper or accountantas to their knowledge and specialty base but that is difficult as they have no idea what questions to ask.Anedra Lewis, E.A. Michigan
Bookkeeper v Accountant
I agree with Mary’s comment.
A bookkeeper performs a “mechanical” function, they have no concept of what’s right or wrong. All they know is they were instructed to debit here and credit there, regardless of how it impacts the company’s financials or general ledger.
An accountant, on the other hand, is more involved with the design of a company’s accounting system, policies and controls, is degrered and has the expertise to implement accounting policy changes in reaction to financial and tax changes in the company’s environment, in contrast to a bookkeeper who cannot do this.
titles
Sometimes I think titles mean nothing. I have worked with accountants that perform bookkeeping tasks and bookkeepers who knew more than accountants. In my opinion an accountant is someone with a degree in accounting who knows more than just debits and credits. A bookkeeper can keep the basic books but has not been trained in the theory of GAAP. There are certificates you can get in bookkeeping which teaches basically accounting 101. Depending on experience a good full charge bookkeeper can cost more than a light accountant. A bookkeeper should know all accounting functions/tasks (e.g. run payroll and related taxes, sales/use tax, AP, AR and collections). It is sometimes hard to find someone who knows everything and makes sure things run smoothly. But I would expect an accountant to question things and not just mechnically record transactions and perform tasks.