The title “bookkeeper” is often used to refer to people who are responsible for bookkeeping. This means that they maintain and improve the financial records of an individual or an organization. However, while there are many similarities between them, there are also some notable differences between a bookkeeper and an accountant.
What Are the Main Tasks of a Bookkeeper?
Bookkeepers can be responsible for a wide range of tasks, which may include:
- Recording and managing all financial transactions.
- Making sure that all invoices are accurately recorded and paid on time.
- Tracking cash flow and budgeting.
- Processing payrolls and filing taxes.
- Checking the accuracy of financial documents.
- Compiling financial reports.
How Is a Bookkeeper Distinguished From an Accountant?
While bookkeepers and accountants are both vitally important to running a successful business, their roles and responsibilities are different. Generally speaking, bookkeepers are responsible for recording the day-to-day financial transactions, while accountants are responsible for providing advice and making sure that all financial strategies are in line with and compliant with relevant laws and regulations.
What Qualifications or Skills Are Needed to Become a Bookkeeper?
While formal qualifications can be beneficial for certain bookkeeping roles, it is possible to gain the necessary skills and experience without a formal qualification. Generally speaking, a minimum of a high school diploma is required for most bookkeeping roles. It is also important to have strong numeracy and accounting skills. In addition, knowledge of applicable accounting software, such as Quickbooks and Xero, is often required.