What are the differences between a bookkeeper and an accountant?

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!