Accountant or bookkeeper? What would benefit me most?
You have reached a point in your business where you decide you need some help. At this point, business owners believe that the first step is to get an Accountant or Bookkeeper but do not understanding what each accounting professional does. But for some clarification, here’s some differences between the two roles:
The Bookkeepers role
The Bookkeeping process involves the record-keeping process of a business’ day to day transactions. At VMSCPA, the Bookkeeping process involves the following:
- Recording of vendor bills (Accounts Payables)
- Producing client invoices (Accounts Receivables)
- Preparation of business payroll
- Recording additional bank or credit card charges
- Monthly reconciliation of statements and accounts
- Preparation of Sales Tax remittance
Throughout the monthly bookkeeping process, the Bookkeeper does also perform various tasks relating to the general maintenance of the accounts and balances while attaching the supporting documents to each transaction that is entered into the Accounting system.
The Accountants Role
The Accounting process is a little different, as the Accountant is responsible for converting the bookkeeping data into information for management to understand. At VMSCPA, the Accounting process includes the following:
- Preparation of adjusting entries not provided by the Bookkeeper
- Preparation of company financial statements (Profit & Loss, Balance Sheet, Retained Earnings and Cash Flow)
- Preparation of Tax Returns
- Analysis of Financial transactions
- Business Coaching & Consulting based on the current status of the business
- Develop and implement Accounting processes
An Accountant should be involved regularly with your business to offer assistance in management decisions that may require additional clarification and be able to provide analysis on various decisions to be or that have already been made.
Accountant & Bookkeeper credentials
Both are very respectable positions that require large amounts of training and understanding of the proper Accounting processes. As an Accountant, I was required to complete a University degree in Business/Accounting as well as complete a 2 year post-secondary certification program while working as an Accountant in order to become a Chartered Professional Accountant (CPA, CMA) in Canada.
As for Bookkeepers, a large number go through the College stream, and complete a Business or Accounting diploma or degree and later achieve a Bookkeeping Certification through various Bookkeeping bodies in Canada. This isn’t necessary for all Bookkeepers to achieve their diploma or certification but through this path, Bookkeepers learn and gain hands-on experience which is highly beneficial to their clients.
As a business owner / entrepreneur, what do you need?
Honestly, it’s up to you! Eventually, as your business grows, you’ll need both! Most of the time when businesses initially start-up, the owner performs the bookkeeping duties. This is great for saving money, however I would recommend taking some sort of training.
Being in control and aware of your company’s financial situation is crucial to your success. In order to grow your business and ensure long-term success in your business, you must keep your financial records in order.
At VMSCPA, our Accounting professionals take complete control of both your Accounting and Bookkeeping functions. Our Accountants are involved throughout all aspects of your Accounts so they are fully aware of your financial situation from the data entry stage to the Year-End preparations.