When you hear the terms bookkeeping and accounting, you might assume that they’re pretty much the same job. However, there are distinct differences between these roles, and most companies employ both types of professionals to help their businesses run smoothly. Here’s a closer look at what they do.

What Is a Bookkeeper’s Job?

The main function of a bookkeeper is to record all financial transactions that a business has and put them in categories. They create a ledger, which is a record of every payment the business has made or received. 

Bookkeepers create invoices and do the business’s payroll. It’s important that bookkeepers are very accurate and have adequate knowledge in their field. However, they don’t need a degree to complete their work and are often overseen by an accountant. 

Some businesses choose to complete their bookkeeping on their own. However, this can take a lot of time and keep higher-ups in the business from fulfilling more pressing management needs. For this reason, a third-party service is often enlisted for bookkeeping duties.

What Does an Accountant Do?

Accountants take the data collected by bookkeepers and analyze it, identifying trends and helping the owner make business decisions. They can look at the cost of the business’s operations and its general financial situation and understand profitability while projecting how it will do in the future. In addition, accountants help business owners plan for taxes and file the returns. This is an important function since business taxes are often very difficult for untrained people to do on their own, particularly with a range of staff and frequently changing tax laws.

Accountants generally have more training than bookkeepers. Usually, they need a bachelor’s degree in accounting or finance. Some accountants also earn additional professional certificates, like the title of Certified Public Accountant (CPA). To become a CPA, an accountant must accumulate a certain amount of experience and then take an exam. These credentials help set them apart during the hiring process.

JJR & Associates LLC can help you with all of your bookkeeping and accounting needs. They’re located in the greater Atlanta, GA, area, and available to small and medium-sized businesses of all types. Their accountants offer tax planning, bookkeeping, and payroll services for a complete financial package. Visit their website or call (404) 437-7748 to schedule a free consultation for your company.