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Explain the Difference between Accountants and Financial Bookkeepers

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Explain the Difference between Accountants and Financial Bookkeepers

Difference between Accountants - Regardless of what type of business you are in, the existence of an accountant and financial bookkeeper is very important. The reason is, both accounting and financial bookkeeping are related to one another. Businesses cannot survive in the long term without the presence of neat and systematic accounting and financial books.

 

Without an accountant and financial bookkeeper, your business will have no transaction records, find it difficult to determine profits have no basis on which inventories and investments will be valued, unstructured capital management, to increase risk factors for material and non-material loss.

 

For ordinary people, accountants and financial bookkeepers are considered the same person, even though in reality they are not. An accountant is responsible for interpreting, classifying, analyzing, reporting, and summarizing financial data.

 

Meanwhile, the bookkeeper is only responsible for recording financial transactions. So, the bookkeeper does not involve skills to interpret and analyze data.

 

Business Finance Process

As previously explained, bookkeeping is the process of recording financial transactions, which is the initial and basic part of an accounting process. With this recording and analysis, proof of business transactions can be seen whether it is included in the debit or credit category.

 

This business financial process requires the art of recording transactions systematically in order to maintain a balance of financial statements based on Accounting Standards (SA). This is what an accountant does with the help of the entity's financial statements, internal audits, and tax audits carried out at the end of the financial year.

 

Accountants and financial bookkeepers, new fields of business

This financial report can be read by the user after the audit process so that the performance and business position for a certain period can be seen. Financial report users include all stakeholders such as creditors, debtors, suppliers, investors, shareholders, and employees.

Thus, the bookkeeper handles the recording portion of the accounting process, while the accountant handles all parts of the accounting process.

 

The complexity of the the business financial process that must be carried out gives birth to new business fields for business actors in the fields of public accounting services, audit services, and tax consultants. 

Some accounting service offices even provide the three business financial services. Of course, you can easily complete the business finance process with the help of accountants and company financial bookkeepers or take advantage of the help of these third parties.

 

Responsibilities of accountants and financial bookkeepers

If you are an online buying and selling business actor who is still unfamiliar with the financial process that must be completed, then you must first understand the different roles of accountants and financial bookkeepers themselves. 

Looking at their duties and responsibilities, an accountant analyzes financial transactions in financial reports and business reports following accounting principles, standards, and requirements.

 

Accountants analyze and interpret financial data to report financial conditions and business performance to company leaders in order to help them make informed business decisions.

On the other hand, the bookkeeper will record financial transactions chronologically every day. Generally, someone in this position will earn no more than an accountant. Although it looks simple, the work that must be done by bookkeepers also requires a high level of precision.

 

Some of the similarities between accountants and financial bookkeepers

Both accountants and financial bookkeepers work using company financial data. You can also get these two professions from an accounting service office which is currently mushrooming in big cities. 

However, of course, you still have to consider credibility and legality before using public accounting services, auditing services, or tax consultants.

 

Generally, bookkeepers in smaller firms such as SMEs often handle much more of the accounting process than just recording transactions. They also classify and generate reports using financial transactions. 

Some may not have the education necessary to handle these tasks. However, with the presence of online accounting software, the classification of transactions has become easier.

 

Conversely, to work in accounting, one must have at least a bachelor's degree to become an accountant. In fact, for a higher level of expertise, he can become a certified public accountant.

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