Do I Need a Accountant or a Bookkeeper?

As I have been walking through the last couple of months in the rebirth of Integrity Accounting, I consistently hear, see, and read communications from business owners, friends, and strangers, and their references about this profession. What profession? Accounting.

I wanted to write this article not because I am stuck on a title, but because there is a large misconception about the difference between an Accountant and a Bookkeeper. Also, because I can help business owners avoid problems simply by spending a few minutes educating on the subject. This misconception can cause business owners a lot of pain especially when they are expecting "accountant results" but have an engagement or employ a bookkeeper. What happens now? The Bookkeeper gets a bad rap, and so does the Accountant. Why, because both professionals have been placed in the same box and they are not the same. Bookkeepers are expected to perform at the higher level which is out of their prevue and Accountants are expected to work for less money. The business owner experiences the pain in this as well because their expectations are not being met.

To understand which professional you have currently, or need to hire, let's discuss a few of the differences between the two professions. Bookkeepers are your go to professional for maintaining your books on a daily basis. They will perform transactions such as creating invoices, paying vendors, banking deposits, receiving cash, general ledger entries, and other similar transactions. They may even do a few account reconciliations, and print out financial statements. Oftentimes, it has been my experience that many bookkeeper's experiences come from on the job training and/or some college education; either an AA or Technical degree. And yes, some Bookkeepers have enough experience that they could be an Accountant, but need that college degree.

An Accountant, is your go to professional for performing any or all of the accounting procedures, the identifying, recording, classifying, reporting and interpreting the financial condition and performance of a business. Many different tasks fall under the "Accountant" headline. Accountants can work in many different positions within the industry; general accounting, cost accounting, auditing, advisory, tax, and government and not for profit. Accountants review, verify, and analyze the numbers provided by office staff to ensure accuracy, completeness, etc. An Accountant's experiences are drawn from a college education, often a Bachelor's Degree in Accounting, or similar degree and job experience. Some Accountants take it to the next level and obtain higher degrees such as Master's in Accountancy, or higher. Accountant's also serve in low to higher levels of management in bigger organizations.

One common issue I see a lot of is a business will employ lower level staff to peform (enter transactions) the daily business functions, but no review is done of the accounts. No analysis is being performed on the numbers. Who is looking for the errors? Who is ensuring proper segregation of duties? Who is questioning and/or implementing internal controls to guard against fraud? Who is doing tax planning and providing sound business guidance? Unless the business owner specifically requests in their engagement with their tax accountant to have their internal controls reviewed, books audited or reviewed prior to filing the tax return, your business is at risk!

This is the area I serve @ Integrity Accounting. I am the Advisor. I am your Profitability & Growth monitor, validator, insurer of accuracy, questioner, business guidance advisor, and much more! My passion is helping my clients reach their dream goals with their business, while achieving their personal goals, and maintaining a healthy quality of life.

I will close this with... if you are a business owner who finds themselves in a position of wanting to grow your business, but need some guidance, let's connect! I am in business because I have been led to help others be successful. Your success is my success. I wouldn't have a business if it weren't for you wanting to strive to achieve your own dreams. And it is such an overwhelming experience of happiness and joy when you can help another person! I am in the business of helping business owners weave their business and personal goals together to experience a fantastic outcome! With my unique approach, as an Advisor, I work with business owners to make a significant difference to their income, ease of operations, and often, an increase in the value of their business.

Does any of this resonate with you? Please share in the comments.

If you have the vision of building your business and making it more than it is today, but are feeling stuck and don’t know how to get to where you want to be, schedule a free chat and let’s talk about your business and personal aspirations and what your next steps should be.

Serving as a Profitability & Growth Advisor, I help small to medium sized businesses in the $1M to $15M range make a significant difference in their income, ease of operations, and often, an increase in the value of their business. By and through the Grace of God, I am here to serve.

You are invited to stop by IATLLC.NET or you can look me up on LinkedIn at www.dhirubhai.net/in/donnafebus

Email me at [email protected] or call direct to 509.895.9730.