Due to the more technical nature of the work accountants provide, they tend to cost more than bookkeepers.Īlthough there is some overlap between the work of accountants and bookkeepers, most business owners can benefit from using both a bookkeeper and an accountant to manage their business’ financial affairs. Some bookkeepers may also offer to complete your business’ VAT returns if you are VAT-registered, complete basic self-assessment tax returns, and may also offer to manage your payroll.Īn accountant, on the other hand, can offer more complex compliance services, such as preparing and filing a business’ tax returns and accounts.Ĭrucially, accountants can also provide strategic advice to business owners, including tax planning services, cash flow reviews, and a review of your business’ overall performance. This means that bookkeepers can help with things such as issuing and recording invoices, booking expenses, reconciling bank statements, and paying suppliers and creditors. There are some crucial differences between bookkeepers and accountants.Ī bookkeeper is generally involved in processing and organising your business’ day-to-day financial operations. The differences between a bookkeeper and an accountant This article explains the differences between a bookkeeper and an accountant, and how you can leverage both to your business's benefit. As the terms "bookkeeper" and "accountant" are often used interchangeably by the general public, business owners can understandably become confused about which one they actually need. When you’re running a small business, it can be difficult to know who to turn to for help with your finances.
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