A bookkeeper keeps track of the day to day transactions in a business. And typically they will be working on a software like Xero , Intuit QuickBooks or Sage to analyse the transactions in the business. Some of the tasks they will perform will be:-
Allocating the uploaded receipts and invoices to the correct cost category
Ensuring they check for VAT and allocate the correct VAT rate
Submission of VAT return to HMRC and dealing with any queries
The bookkeeper may also perform other duties such as payroll, reporting and credit control.
*Bookkeeping is the most important finance function in a business*
If your bookkeeping is wrong then your accounts will be wrong and possibly also your VAT!
So what does an accountant do?
– An accountants primary role is to ensure compliance with the regulation and advise on tax. Some of the tasks they perform will be:-
Preparation of Company accounts for submission to Companies House
To provide advice and guidance on tax planning
Submission of tax returns to HMRC and dealing with queries
This list is not exhaustive but generally in order to have a successful business you will need both a qualified bookkeeper and a qualified accountant!
Without a qualified bookkeeper the accounts generally need tidying up at the year end by the accountant at a much higher cost!
