Accountant Or Bookkeeper For Business?
Posted On: 23/06/21 - 0

Managing the cash flow, keeping records of transactions and making financial decisions can be tricky if you run a small business. But as your company grows, so do the number of people such as vendors, customers, and employees. At this stage, keeping track of the cash flow becomes challenging. As a result, you need to seek the help of professionals such as an accountant or bookkeeper, or perhaps both?  In this article, we will be taking a look at the role of an accountant and a bookkeeper and how they impact your business.

An Accountant or a Bookkeeper? 

Many times these terms are used interchangeably. Both terms seem to have a similar meanings to the public.  Especially, when both accountants and bookkeepers work with financial data on a daily basis. But, did you know that they have different roles and responsibilities to perform? If you think you need professional help to manage financial matters in your business, it is important to know the difference between an accountant and a bookkeeper.

The Role of an Accountant

Firstly, accountants have varied administrative tasks to perform in business. In a small business, an accountant’s role is limited to collecting financial data and generating reports. On the other hand, medium to large-sized companies need accountants to perform the role of an advisor and interpreter.  Accountants present a business’s financial data to management and the owners of the business.

Secondly, an accountant’s primary role involves the collection and maintenance of financial data and ensuring the records are maintained on an on going basis.  They make sure that the business is in compliance with tax laws. Apart from maintaining the financial data of a business, an accountant also performs several other duties. These likely include business development advice, the filing of an annual corporate tax return, payroll, etc.

The Role of a Bookkeeper

Finally, the most important role of a bookkeeper is to review and record financial data with accuracy. They keep a record of all the transactions that take place in business operations and also maintain the confidentiality of their clients financial data. It includes keeping a record of of money transactions, sales, receivables and payables. There are many  bookkeeping software options that bookkeepers use. Bookkeepers work closely with the accountant when it gets closer to the corporate year end of a business. They work collaboratively to ensure everything is reconciled correctly. The reason for this is to make an informed calculation when it comes to taxes and G.S.T. owed to the CRA.  Apart from handling records, duties of bookkeepers include handling bank deposits, keep track of purchases, submit bills, and prepare files for the accountant.

Planning to hire bookkeepers and accountants in Edmonton to manage financial matters for your business? Contact us at Padgett Business Services. 780-482-7297

12203-107 Avenue.
Edmonton, Alberta.
T5M 1Y9

Call us:
780.482.7297