Individuals who complete their accounting degrees may thing, “what next?” There are two main career options for accountants. Keep in mind that, within accounting, there are more options to consider as well. Accountants and Bookkeepers are the two main career options for those who graduated with a degree in accounting.
The Difference Between the Roles of an Accountant and a Bookkeeper
Accountants and bookkeepers are very different although the terms are commonly used interchangeably. Listed below are the differences between the two.
Bookkeepers
- Keep detailed records of financial transactions in a company
- Make payments, record when payments are received, and track amounts and dates of payments owed to a company
- Issue invoices, review incoming invoices, collect documents to ensure invoices are accurate
Accountants
- Set up a system a business will use to monitor its financial transactions
- Create and present reports enabling top executives to make financial decisions for the company
- Involves a higher level of strategic thinking and planning
- Generally have more education than bookkeepers, many have MBAs and may be certified CPAs
- Expected to ensure the financial records are consistently accurate
- Implement measures to test the accuracy of bookkeeping records
- Monitor financial progress of business and deter fraud
Although there are several differences, bookkeepers and accountants do have some common ground. The all work as company employees or specialists hired to perform certain tasks. In a large company, accountants ensure that the business has enough cash on hand to pay the obligations owed by the business during any given time period, whereas in a small company, this is the bookkeepers role. Do you understand the difference now?